Coinbase co-founder and CEO Brian Armstrong has sparked debate by presenting an revolutionary proposal to streamline government operations and encourage fiscal duty. His method coincides with the current creation of the Department of Government Efficiency (DOGE) by President-elect Donald Trump, whose goal is to cut back forms and optimize federal spending.
A Historic Reform for a More Efficient Government
On Platform X (previously Twitter), Armstrong described DOGE as a “once in a lifetime opportunity”” stallecut the size of government and return it to its optimal state.” According to Armstrong, the founding fathers of the United States did not foresee how politicians could promise more and more benefits to win votes, which has led to uncontrolled growth in public spending.
The CEO of Coinbase suggests that, to solve this problem at its roots, it would be necessary to implement a constitutional amendment that limits total government spending. For example, he proposed a ceiling of 10% of GDP, although with flexibility to be temporarily adjusted in exceptional situations, such as times of war.
A Sovereign Fund for the Benefit of All
Armstrong raised the idea of creating a sovereign wealth fund in the United States, in which each citizen would have a shareholding. This model would allow dividends to be distributed from any budget surplus, thus offering a direct incentive to citizens to support fiscal responsibility.
According to Armstrong, this system could also allow citizens to buy more shares if they wish, involving them even more in the country’s economy. He even suggested that Congress could receive slightly more participation, which would align the interests of legislators with those of the population.
Inspiration in Milton Friedman: A Minimalist Government
Armstrong relied on the ideas of renowned economist and Nobel Prize winner Milton Friedman, who proposed limiting the functions of government to three key areas:
- Courts of law to enforce contracts and resolve disputes.
- Police to maintain order and protect property rights.
- Military for national defense.
This minimalist vision of government seeks to ensure that resources are used efficiently, avoiding excessive growth of bureaucracy.
Elon Musk and Vivek Ramaswamy Lead the DOGE
Armstrong’s proposal comes shortly after Donald Trump announced that Elon Musk and biotech entrepreneur Vivek Ramaswamy will lead DOGE. This department will have the mission of “dismantle government bureaucracy, reduce excessive regulations, cut unnecessary spending and restructure federal agencies,” according to the president-elect’s statements.
Musk responded positively to Armstrong’s ideas on the same social network, describing Milton Friedman as “a genius” and supporting its focus on government efficiency.
Implications and Challenges of the Proposal
Armstrong’s proposal, mixed with DOGE’s mission, might mark a vital shift towards a more trendy, efficient and fiscally accountable government. The introduction of dividend-based incentives for residents might strengthen transparency and public belief, whereas encouraging fiscal self-discipline.
However, implementing these reforms would require intensive debate, contemplating the social and political challenges that include such a drastic change within the construction of government. Could this mannequin be the way forward for public administration within the United States? Only time and political will will inform.
