It’s been less than two months since President Donald Trump took office and gave control to Elon Musk and his Department of Government Efficiency to get rid of government waste and fraud and as promised they’re shaking things up. For weeks there have been non-stop policy changes, plus thousands of federal employees terminated across multiple agencies such as Social Security Administration, the Forest Service, the Food and Drug Administration Food Division, Centers for Disease Control and Prevention, the Federal Aviation Administration, HUD and more, per CNN. And more changes are coming.
At a Trump rally back in October, Musk said he wants to cut $2 trillion.
“Your money is being wasted and the Department of Government Efficiency is going to fix that,” he told the crowd.
According to DOGE’s website, Musk’s team has already saved $105 billion, but at what cost to the middle class? More layoffs are expected, the market is tanking and there’s loud whispers of a recession.
While the White House states Trump’s actions are turning things around, some experts disagree. Here’s three ways Musk’s DOGE could hurt the American middle class financially.
Job Loss
The mass firings by Trump and Musk have dominated headlines the last few weeks and are causing turmoil across several agencies while racking up major job loss for the middle class. The Associated Press recently reported at least 1,600 U.S.-based staffed employees at the U.S. Agency for International Development (USAID) has been fired.
Anthony Termini, investment advisor and expert contributor for Retireguide.com explained what a financial blow that is for Americans.
“So there are 1,600 people who (are all likely middle class Americans) may not be able to pay their rent. They may not be able to make their car payments. Some may not be able to afford groceries.”
Termini noted, “Eliminating this one program won’t have a macroeconomic impact. Neither will the firing of 17 Inspector Generals, the handful of CIA agents, the 400 employees at the FAA, those terminated at the Departments of Homeland Security, Agriculture, Veterans Affairs, and Interior, those at the Environmental Protection Agency, and the Federal Deposit Insurance Company.”
He added, “But collectively all of the programs targeted (announced and posted to the DOGE website) would, if they were enacted.”
Economic Instability
Another way Musk and DOGE could financially cripple the middle class is through economic instability.
Danny Ray, founder of PinnacleQuote explained, “When policies or financial moves lack clear structure, they create uncertainty, and that uncertainty trickles down to everyday families. In fact, when large corporations and influential figures like Musk shift economic landscapes too quickly, small businesses and middle-class workers often struggle to keep up.”
An example Ray gives is if regulations are cut suddenly without safeguards it could lead to further job loss and company downsizing to adjust.
“When the financial markets react to unpredictable decisions, middle-class investors and retirees depending on stable 25 Places To Buy a Home If You Want It To Gain Value could see their savings shrink overnight,” he stated. “Over all, while efficiency in government sounds good on paper, rapid or unchecked changes can create unintended financial hardships for working families who rely on consistency and job security.”
Ray also noted, “Above all, the middle class thrives on economic stability, and any disruption, no matter how well-intended, can have lasting consequences.”
Diminished Veteran Affairs Services
“This will create a ripple effect that directly impacts the middle class,” Ray explained. “Cutting staff means longer wait times, reduced quality of care, and more frustration for those who served our country. In fact, many of these employees are middle-class workers themselves, so job losses hurt families and local economies.”
Ray added, “Over time, fewer employees at the VA could lead to increased privatization, which often results in higher costs and less accessibility for those who need help the most. These cuts don’t just affect VA workers and veterans, they impact the entire middle class by increasing financial pressure, reducing job opportunities, and weakening support systems for those who fought for our country.”
While DOGE is meant to clean up excess government spending, Termini believes it will crush the middle class.
“DOGE cuts will effectively shrink the U.S. economy”, he stated. “It will create a multiplier effect in reverse. That’s how DOGE’s indiscriminate cuts will hurt the middle class.”
Termini also pointed out that DOGE doesn’t offer any hard evidence of government waste that can be fact-checked and while the organization “hasn’t done anything yet to affect the middle class, writ large, give them time.
“They’ve only been operating for about six or seven weeks.”
