In a move set to shake the corridors of Washington, President-elect Donald Trump has appointed Tesla’s CEO Elon Musk and entrepreneur Vivek Ramaswamy to lead a new «Department of Government Efficiency,» or DOGE. With a nod to Musk’s favourite cryptocurrency, Dogecoin, this initiative intends to cut waste, slash red tape, and shake up the federal government.
The new department, structured as an advisory to a government agency, is charged with introducing private-sector efficiency to government by Independence Day 2026. Musk, whose influence in political and tech circles grows daily, hinted at his disruptive intentions: «This will send shockwaves through the system, and anyone involved in government waste—there’s a lot of them—better be ready,” he said in a press release from Trump’s campaign.
Musk and Ramaswamy, both outspoken critics of bureaucracy, will be working outside formal government structures, giving them greater freedom to implement drastic changes without being bogged down by red tape. Trump’s statement likened the mission to a “Manhattan Project” for government reform, saying, “This will bring an entrepreneurial mentality to government we’ve never seen before.”
Eyes on Argentina’s radical reforms
Trump’s ambitions mirror reforms recently undertaken in Argentina under President Javier Milei, who has been slashing ministries, abolishing rent controls, and shrinking the state.
Ritesh Jain, founder of Pinetree Macro, drew comparisons, saying, “This is a wow moment for the United States. Argentina’s recent ‘shock therapy’ is a harbinger of the turbulence—and investment opportunities—these kinds of reforms can bring.”
Investors now view Argentina as a possible blueprint. The country’s shale resources have been a magnet for foreign capital, and Milei’s pro-market policies have driven the Global X MSCI Argentina ETF up by 87 percent, stoking enthusiasm for a ‘quiet bull market’ there. DOGE’s sweeping mandate could lead to similar excitement in the United States, with investors hoping the American project will replicate Argentina’s early successes.
DOGE: More than just a meme
DOGE’s name, reminiscent of Dogecoin, adds a twist of irony to the serious mandate Musk and Ramaswamy have been given. The meme cryptocurrency surged by more than 250 percent following Trump’s announcement, reflecting market faith in Musk’s influence. Dogecoin’s popularity, often seen as a barometer for investor sentiment, has surged as Musk’s political influence grows. Market watchers still remember the 30 percent jump in Dogecoin’s value when Musk briefly replaced Twitter’s logo with Dogecoin’s Shiba Inu mascot last year.
Ramaswamy’s free-market vision
Meanwhile, Vivek Ramaswamy, known for his vocal stance against ESG (Environmental, Social, and Governance) mandates, will bring his own free-market ethos to the role. As founder of Strive Asset Management, Ramaswamy has gained a following by challenging the ESG approach championed by giants like BlackRock, instead promoting a model focused on shareholder returns. His anti-ESG stance has resonated with investors prioritising profits over social commitments, and his role within DOGE is likely to mirror that philosophy.
“We’re looking at a government overhaul that doesn’t pull any punches,” Ramaswamy wrote on X. Investors and commentators alike are watching closely to see if his ideals will lead to a stricter, efficiency-driven government.
Further reading on Investment Officer:
- Trump’s comeback: European bond markets seen as safe haven
- Macron, Scholz push for a united Europe in the new Trump era
- Market fallout: Winners and losers emerge from Trump’s win