Economy

    Will Australia follow Trump in a “DOGE” attack on the public service?

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    Amidst a faltering global economy and unstable stock markets, a group of workers have become an unwitting scapegoat in the need to curb ‘wasteful spending’ and stabilise the economy.

    US President Donald Trump was elected on a platform to reduce government waste, with public servants firmly in his crosshairs.

    In a bold move, Elon Musk was appointed to head up the Department of Government Efficiency (DOGE) in a bid to stamp out government 'inefficiency’.

    The new administration took no time following through on its promise, reportedly slashing 62,242 job cuts across 17 federal agencies in February.

    Taking a leaf out of Trump’s playbook, the Federal Opposition Leader Peter Dutton has also hinted at curbing ‘wasteful’ government expenditure. 

    Slashing public sector spending by axing 36,000 jobs could be part of a grand plan to save $6 billion annually.

    It's a rhetoric that on face value, strikes a chord with the average voter.

    A vision of a ‘pen pusher’ who seemingly doesn’t contribute anything tangible to the economy - at least in the minds of some - is an easy rhetoric to prosecute.

    This, and that the amount of government employees rose by 3.6% between June 2023 and June 2024, reaching a total of 2,517,900 employees, has somewhat helped fuel public perceptions of a bloated sector.

    But is this the reality? And will the cuts actually save money?

    While these figures show growth in public sector employment during Albanese's tenure, they also reflect broader trends and ongoing increases in public sector employment that predate this government.

    Analysis shows that both major political parties have been responsible for growth in public sector employment over the past decade.

    The share of the workforce employed in the public sector has increased from 12.5% to 17.9% between August 2014 and August 2024.

    After all, it's a great way to ‘hide’ real unemployment figures.

    But here’s the rub.

    The last time public sector waste was ‘tackled’, public sector work was outsourced to private consultants.

    This has historically cost Australian taxpayers far more than employing in-house staff. 

    In the 2021-2022 financial year, the Morrison government reportedly spent $20.8 billion on consultants and outsourcing.

    So if Australia is genuine about truly curbing ‘waste’, then the decision to cut public sector jobs must be considered from the vantage point of what happens next.

    Far from being a solution to ‘wasteful’ spending, it could risk undermining essential services and eroding trust in government institutions - all while failing to deliver meaningful savings.

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