Coinbase CEO Brian Armstrong supports DOGE mission to cut government spending, proposing a 10% cap and a citizen wealth fund.
Coinbase CEO Brian Armstrong strongly supports the newly formed United States Department of Government Efficiency (DOGE). The department is designed to tackle government inefficiency by reducing spending and cutting regulations. Tesla CEO Elon Musk and entrepreneur Vivek Ramaswamy will head it. On November 17, Armstrong highlighted that DOGE would be an opportunity to bring back a free economy. As a result, this initiative will make the US government more efficient.
In his post on X, Armstrong continued to point out that DOGE could be used to tame the government’s spending. He noted that the trend of large government due to the electoral desire for free stuff distorts the incentives in the long run. Armstrong reflected on the wisdom of America’s founding fathers, suggesting they may have missed some long-term consequences. He argued that while they were brilliant, they likely overlooked how certain incentives could lead to government growth. Armstrong also believes these factors may have contributed to inefficiencies in modern governance.
Coinbase CEO Suggests 10% Spending Cap and Sovereign Wealth Fund
To this end, Armstrong came up with big-thinking solutions. He recommended a motion for a constitutional amendment that total expenditures could be fixed at a particular proportion, for instance, 10%. This would prevent the growth of the government but, at the same time, would provide the necessary flexibility in emergencies, such as wartime. Armstrong also hinted at better alignment of incentives, using Warren Buffet’s remark that Congress members who vote for unbalanced budgets should not be allowed to stand for re-election.
Armstrong also backed the notion of a US sovereign wealth fund in which every citizen would be issued a stake. The extra budget could be paid out as dividends. In this way, people would have skin in the game regarding the government’s expenses. Armstrong even proposed that Congress be given a slightly more significant share in the fund. Consequently, legislators would be more interested in the long-term sustainability of the country’s finances.
Ultimately, with Armstrong’s support, DOGE is ready to become a key participant in the ongoing transformation of the United States’s future governance.
