All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Brian Armstrong supports DOGE to reduce government size and enhance economic freedom in the U.S.
- Armstrong suggests a U.S. sovereign wealth fund to align citizen and government fiscal incentives.
Coinbase CEO Brian Armstrong has expressed support for the newly formed Department of Government Efficiency (D.O.G.E.), which is managed by tech mogul Elon Musk and entrepreneur Vivek Ramaswamy.
Armstrong praised the project in a detailed post on X as a “once in a lifetime opportunity” to change the economic environment in the United States by improving economic freedom and thereby lowering the size of the government.
. @DOGE is a once in a lifetime opportunity to increase economic freedom in the U.S. and cut the size of government back to health.
The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over…
— Brian Armstrong (@brian_armstrong) November 17, 2024
Structural Reforms to Address Government Spending Challenges
Armstrong contended that negative incentives inside the U.S. government had caused it to expand constantly. He noted how democratic systems can encourage leaders to increase government expenditure by guaranteeing more advantages to gain elections.
Armstrong claims that this loop has been a basic weakness in the system, allowing unbridled centuries. Although he praised the genius of America’s founding fathers, he said they might not have envisioned the long-term difficulties of running a burgeoning democracy with its financial obligations.
Armstrong put forward structural changes to control government expenditure in order to solve these problems. He proposed a constitutional amendment limiting government spending overall to 10% of GDP. This extreme concept seeks to drive legislators to cut waste and give expenditure first priority.
Armstrong also brought up a well-known Warren Buffet theory that said Congressmen who voted in favor of an unbalanced budget would not be eligible for reelection. Armstrong thinks these steps would realize incentives and guarantee financial discipline at the highest levels of government.
Citizen-Centric Solutions for Fiscal Efficiency and Flexibility
Apart from managing expenditure, Armstrong underlined the need for citizen involvement in government operations. Every person would own a piece in a U.S. sovereign wealth fund, he said. This fund would distribute benefits to people from surplus government budgets, therefore involving each person directly in the financial situation of the government.
Armstrong also mentioned that Congress might get a bigger share in the fund to better match incentives, assuring that both legislators and people endeavor toward a shared objective of economic efficiency.
Armstrong understood nevertheless that in unique situations—such as war—where temporary increases in government expenditure were inevitable—flexibility was needed.
Any system meant to manage expenditure should, he said, allow for such flexibility while still providing protections against long-term fiscal negligence. Armstrong’s description of the sovereign wealth fund concept suggests a solution by allowing for controlled spending when needed and generating incentives for saving during times of surplus.
DOGE Gains Momentum Amid Market Speculation
The announcement of the Department of Government Efficiency has also generated unanticipated responses in the crypto market. Although the department and Dogecoin (DOGE) have no formal relationship, the coincidence nomenclature has helped the meme coin become rather popular.
Especially prominent in this market trend have been large-scale investors, also known as “whales.” Reflecting their belief in its future for additional expansion, CNF previously reported that Dogecoin whales have acquired approximately $55 million worth of the digital asset.
Also, one whale lately made news by profitably selling SPX tokens for $920,000 and reinvesting $6.2 million into Dogecoin.
Meanwhile, Dogecoin is trading at about $0.3645 at the time of writing, a 60.50% rise over the last 7 days. Although the coin has faced a minor correction, its increasing pace is still really strong.
