Commerce Secretary Howard Lutnick complained on Sunday that cuts identified by the Government Efficiency (DOGE) would harm economic indicators.
Lutonic It appeared For Fox News’ Sunday Morning Futures, we address concerns about Doge’s impact on economic measures that will reduce federal government size and spending. He said government spending will be separated from the GDP report accordingly.
“You know, we know that the government has historically ruined GDP,” Rutnick said. I said. “They count government spending as part of their GDP, so I’ll separate these two and make them transparent.”
I was able to participate this morning @mariabartiromo We discuss how the Trump administration is making America great by securing borders, imposing tariffs, strengthening our economy, and standing up for the American people on the world stage. pic.twitter.com/mbt65fw7su
– Howard Lutnick (@howardlutnick) March 2, 2025
“If the government buys a tank, it’s GDP, but paying 1,000 people to think about purchasing a tank is not GDP,” explained Lutnick. “It’s wasted inefficiency, wasted money. And we cut it, but we’re going to get rid of it while it’s shown in GDP.”
“Remember this: if you balance the budget in the United States, interest rates will be destroyed. When. [the United States] It will generate the energy we need, destroy energy prices, destroy inflation, and explode our economy,” he continued. “This would be the best economy anyone has seen, and it would be stupid to oppose it.”
Separation of spending from GDP reports can distort or complicate measures of health in the US economy. According to To the Associated Press (AP). According to the outlet, government spending is usually included in GDP as government impacts, deficits, regulations and tax changes are generally in overall growth.
The GDP report already includes details on government spending, allowing for transparency for economists, the outlet said.
Lutnick’s comments reflect the discussion Doge Head Elon Musk had on X on Friday. (Related: “Don’t Lie”: Karoline Leavitt sets “Straight” with Musk, Doge and Social Security waste).
A more accurate measure of GDP excludes government spending.
Otherwise, you can artificially expand your GDP by spending money on things that don’t make people’s lives better.
For example, you can move everyone building a car to work with a DMV. it is… https://t.co/yu6uxeghie
– Elon Musk (@elonmusk) February 28, 2025
“A more accurate measure of GDP would eliminate government spending,” Musk wrote. “If not, we can artificially increase our GDP by spending money on things that don’t make people’s lives better.”
The latest GDP report was Published Thursday, the Ministry of Commerce’s Economic Analysis Bureau. According to the Associated Press, the economy has grown at an annual rate of 2.3% over the past three months of 2024.
The report shows that profits for the end of 2024 are driven primarily by increased consumer spending and upward revisions of federal spending in terms of defense. Government spending accounted for almost a fifth of a person’s personal income, including military veteran benefits, Social Security payments, Medicare, Medicaid and other programs.
