Why DOGE Was Always Doomed: The Pentagon Problem

Chart of the Week #57

We've talked war extensively this week (catch up here and here if you missed it), so it’s only fitting that our Chart of the Week focuses on the same theme—specifically, the jaw-dropping size of the U.S. military machine.

As you can see in the chart below, the Pentagon’s budget towers over every other discretionary spending category. In FY 2024, total discretionary spending was about $1.6 trillion. Of that, the Pentagon alone received $842 billion. In other words, it got more funding than all other departments combined. You read that right: one (very special) department received more than all the rest put together.

This graph tells you everything you need to know about why government efficiency efforts like DOGE were always fighting an uphill battle.

Imagine trying to clean a massive house but being forbidden from entering the room with the biggest mess. That's essentially what happened to DOGE—and it explains why Elon Musk's government efficiency crusade was essentially doomed from the start.

The Pentagon is truly the ultimate can of worms, where a motherlode of waste and corruption is just waiting to be uncovered.

And don't just take my word for it—back in November 2024, just over half a year ago, the Pentagon failed its annual audit. That means it couldn’t fully account for how its massive budget was spent.

Even more shocking, this was the Pentagon’s 7th consecutive failed audit—ever since the DoD was first required to undergo yearly audits in 2018.

In other words, failing financial audits isn’t an anomaly for the Pentagon—it’s the norm.

I've spoken with a big-time auditor acquaintance who has worked on countless audits of publicly traded companies. He told me you won’t find a single publicly traded company in the entire country as incapable as the Pentagon when it comes to transparent and honest financial reporting.

But is it even possible to track spending when the system itself is specifically designed for opacity?

The Pentagon operates through a labyrinth of contractors, subcontractors, and classified programs that make meaningful oversight nearly impossible. Remember those infamous $640 toilet seats and $7,600 coffee makers? You might recall the public outrage they generated—and if you don't, you'd probably be just as furious hearing about them now.

Well, those are just peanuts compared to the billions the Pentagon wastes on helicopters, missile-defense systems, and other overpriced big-ticket military hardware—all designed to enrich defense contractors and sustain the machinery of the military-industrial complex.

Have a good rest of the weekend,

Lau Vegys