Labor market is already tense
Crash prophet warns: Musk burns billions
03/22/2025 – 5:13 p.m.Reading time: 2 min.
Elon Musk and Doge shorten the US state. According to investor Danny Moses, the consequences could be devastating.
The US investor Danny Moses, known for its predictions in 2008, warns of Doge. The consequences of the extensive job cuts in the public service could not be estimated – the public would also underestimate it so far. In an interview with the broadcaster CNBC, Moses explained: “We are too optimistic about how it will develop.”
These cuts would therefore hit small companies from the private sector. As “Fortune” writes, the US government awarded 2023 contracts worth around $ 759 billion. 171 billion of them accounted for small companies that would be particularly dependent on the state benefit. If important money is missing here, according to Moses, consumers and finally important investors could be unsettled.
An example of this effect is the management consultancy Accenture. CEO Julie Spellman Sweet made it public on Thursday that her company had lost several government contracts in the course of the Doge checks. As a result, the course of the Acccenture share collapsed by almost eight percent.
The consequences for the labor market could also be dramatic. The labor market researcher Cory Stahne told Fortune: “We do not know exactly whether the labor market can start these labor.” Although there are still employment opportunities in the healthcare system – the field of around 16 percent of those affected – the situation is tense in other sectors such as IT and data analysis.
According to official figures, the US government has so far released more than 24,000 federal employees and plans to reduce a further 75,000 jobs by a severance payment program by September. Doge himself puts the savings at $ 115 billion, experts question this number.
