How Clinton’s Reinventing Government Initiative Saved Billions: A Look at Past Leaders Like Trump and Musk Making Bold Cuts

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How Clinton’s Reinventing Government Initiative Saved Billions: A Look at Past Leaders Like Trump and Musk Making Bold Cuts

DENVER (AP) — A new administration in Washington has announced plans to shake things up by using corporate strategies and modern technology. They want to make the federal government more efficient.

Recently, they offered buyouts to millions of government employees and aimed to cut costs to help balance the budget. This might remind some people of the controversial cost-cutting efforts by Elon Musk during Donald Trump’s presidency. However, the most significant government overhaul in recent history actually took place three decades ago under Bill Clinton. His initiative, called “Reinventing Government,” was led by then-Vice President Al Gore.

Musk has tried to link his efforts to Clinton’s, claiming that what he’s doing is similar to the policies from the 90s. But those who witnessed the “Reinventing Government” initiative describe it very differently. It was a slow, methodical process that involved lawmakers and sought to identify inefficiencies within federal agencies.

Max Stier, president of the Partnership for Public Service, noted that the previous effort focused on understanding what changes were needed, while the current push appears to be moving backward. The Trump administration, driven by Musk’s influence, dismissed thousands of federal workers with little notice and introduced buyout programs without congressional approval.

Critics argue that the approach being taken now lacks a cohesive strategy. During the Clinton years, initiatives aimed at improving government efficiency not only sought to cut costs but also aimed to enhance service. The Clinton team brought in 400 staff members from various agencies and emphasized customer service, setting performance standards for workers.

One of the key advancements from the “Reinventing Government” initiative was the incorporation of the internet into federal services. Programs like electronic tax filing can be traced back to this effort. Gore symbolically highlighted the initiative by breaking an ashtray on a late-night talk show to represent the campaign against waste. The government even awarded “hammer awards” to employees who proposed ways to cut red tape.

Instead of viewing employees as liabilities, the Clinton administration regarded them as valuable assets. They worked with Congress to approve buyouts for federal workers and successfully eliminated over 400,000 positions through voluntary departures, natural attrition, and a few layoffs.

However, Kettl, a public policy professor, pointed out that these cuts didn’t necessarily yield savings, since the government often hired contractors to fill the gaps left by departing workers. There’s concern that similar issues could arise from the current cuts being enforced by Musk and Trump.

Chris Edwards from the Cato Institute emphasized that the involvement of Congress was crucial to the Clinton administration’s changes. Today, many Republican lawmakers seem to be allowing Musk to act without significant oversight from Congress, which raises questions about the legality of some actions being taken.

Senator Lisa Murkowski of Alaska noted that it is essential for lawmakers to assert that such moves may violate existing laws regarding federal spending and program cuts. Kamarck estimated that the “Reinventing Government” initiative saved around $146 billion—substantial, yet still just a fraction of the overall federal budget. She stressed that the Clinton approach prioritized careful restructuring aimed at maintaining essential government services, while today’s fast-paced efforts may overlook these critical roles.

The risks involved in government failure are much higher than in the corporate world, Kamarck cautioned. She worries that the current administration may not be taking these concerns seriously enough.



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