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Government slimming down but spending more? U.S. federal agencies cut 9% of staff but expenses surged by 6%
【Crypto World】An interesting paradox has been playing out this year: the US government’s “downsizing plan” looks impressive, but the actual results are underwhelming.
Numbers tell the story. Federal employees were cut from 3.015 million at the beginning of the year to 2.744 million in November, a nearly 9% reduction. It sounds efficient. But what’s the reality? During the same period, government spending actually increased from $7.135 trillion to $7.558 trillion, nearly a 6% rise. In other words, fewer people, but more money spent.
Political affairs are also changing. This summer, there was discussion about whether to go solo and form a third party. But in recent months, the attitude has done a 180-degree turn, and donations have resumed to traditional political parties. It seems the rules of the political game still need to be adjusted according to reality.
How should we interpret this situation? On the surface, there are cuts and efficiency drives, but behind the scenes, the budget is growing. For those paying attention to macroeconomic trends, this contrast is worth pondering— the gap between policy implementation and actual costs is often one of the signals of market volatility.