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The Myth-Busting Economist by Larry Malone

Some Truths about Federal Spending

Since the dawn of the New Year, our federal government has been under siege. Master Elon Musk is leading his DOGE Wiz Kids to supposedly root out corruption and fraud, save American taxpayers $2 trillion, and slash the federal payroll. That’s a big lift, since he’s also “protecting” our personal information and past tax returns from other potential predators. If all goes according to plan, Musk is expected to shrink what we send to Uncle Sam in payroll taxes by April 15th each year. And that nudge of a few extra dollars will return America to greatness.

Were things really so bad that we needed Musk to rescue us, diverting his attention from taking a handful of space travelers to Mars?

To answer, let’s start by laying out the basics of the federal government budget. Like any budget, it consists of receipts and expenses.

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