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Writer's pictureJ Dean

U.S. Government Cost Efficiencies Impact 500,000 Federal Workers: A Comparative Analysis of Switzerland, Estonia, Singapore, New Zealand

Updated: Nov 14

Government efficiency and cost-effectiveness are essential for the optimal use of public resources, ensuring taxpayer money is spent wisely while delivering high-quality public services. This article compares the government cost efficiencies in Switzerland, Estonia, Singapore, and New Zealand with those in the United States and explores potential changes the U.S. could implement to enhance its cost efficiency. Recently, a strong voter mandate elected President Trump, signaling major changes in Washington, D.C., with expected budget cuts reaching $2 trillion and up to 500,000 federal workers either relocated or laid off. This efficiency plan is led by billionaire Elon Musk and entrepreneur Vivek Ramaswamy. Consequently, over the course of 2025-2026, the entire U.S. political landscape will be reshaped, with several federal agencies potentially being eliminated or moved to more cost-friendly states across the country.


Watch Video Elon Musk talks about Government Efficiency $2 trillion Cuts ...


Let's Take a Closer Look at Switzerland: A World Leader in Efficiency


Switzerland is renowned for its decentralized government structure, which promotes efficiency. The Swiss government operates with a high level of transparency and accountability. Cantonal and municipal governments have significant autonomy, allowing for tailored and efficient public services. Additionally, Switzerland's direct democracy enables citizens to have a say in public spending, ensuring that funds are allocated according to public priorities. Switzerland is known as a banking hub world leader and tops business innovations making it highly economically competitive.


Estonia


Estonia has embraced digital governance to enhance efficiency. The country’s e-government initiatives have streamlined administrative processes, reduced bureaucracy, and cut costs. Services like e-Residency, online voting, and digital signatures have made government operations more efficient and accessible. Estonia’s digital transformation has not only improved public service delivery but also attracted global businesses, boosting economic growth.


Singapore


Singapore's government is characterized by its technocratic approach, with a focus on meritocracy and efficient public administration. The government employs rigorous financial management practices, emphasizing performance and accountability. Public agencies are required to meet strict efficiency and effectiveness standards, and regular audits ensure compliance. Singapore’s efficient public sector has been a cornerstone of its economic success. For example, Singapore the top individual income tax rate is 22%, and the top corporate tax rate is 17% data shows. The tax burden in Singapore equals 12.6% of GDP versus in United States the tax-to-GDP ratio in the United States is 27.7%, which is the percentage of the country's gross domestic product (GDP) that came from taxes.


New Zealand


New Zealand's government prioritizes transparency, accountability, and fiscal responsibility. The introduction of the Public Finance Act and the Fiscal Responsibility Act has fostered prudent financial management. New Zealand also utilizes performance-based budgeting, where government agencies must justify their expenditure based on performance outcomes. This approach ensures that taxpayer money is spent efficiently and effectively.


The United States


In contrast, the U.S. government is often criticized for inefficiency and wasteful spending estimated at up to $2 trillion per year that can not be accounted for such as defense assets often lost in the political bureaucracy. The federal structure, with multiple layers of government, can lead to duplication of services and bureaucratic red tape. Political considerations often influence budget allocations, sometimes at the expense of efficiency. Moreover, the lack of comprehensive digital infrastructure hampers the optimization of government operations. And research analysis shows that it would be possible to eliminate the federal income tax using a combination of solutions - Read Analysis on How to Eliminate Federal Income Taxes in America


Watch Video 88% of U.S. Federal Workforce Reclassified held Accountable in Executive Order ...


Potential Changes for the U.S. Government


  • Decentralization and Local Autonomy: Like Switzerland, the U.S. could benefit from decentralizing more powers to state and local governments. This would allow for more tailored and efficient public services, reducing the inefficiencies associated with a one-size-fits-all approach. For example, President Trump has called for the elimination of The U.S. Department of Education, instead returning this function to individual states.


  • Digital Transformation: Emulating Estonia’s digital governance, the U.S. could invest in robust e-government initiatives. Streamlining administrative processes through digital platforms can reduce bureaucracy, enhance transparency, and lower costs. Estimates find the U.S. federal government could save $1 trillion per year just by digitizing the administration and management of federal agencies.


  • Performance-Based Budgeting: Adopting New Zealand’s performance-based budgeting could ensure that government agencies are held accountable for their spending. Allocating funds based on performance outcomes would incentivize efficiency and effective use of public resources. And it's very likely President Trump uses executive order powers to reclassify 88% of U.S. federal workforce that can then be held accountable and even fired or laid-off for bad performance. This would transform the government radically into a business model paradym.


  • Technocratic Approach: Incorporating Singapore’s technocratic approach, the U.S. could emphasize meritocracy and expertise in public administration. Implementing rigorous financial management practices and regular audits would enhance accountability and efficiency.


Potential Savings


Estimating the exact amount of money that could be cut from the U.S. government budgets to make it cost-efficient is complex. However, several studies and reports suggest significant savings potential:


  • Reducing Waste and Duplication: The Government Accountability Office (GAO) has identified areas of duplication and overlap that, if addressed, could save billions of dollars annually. For instance, streamlining defense procurement, modernizing warfare with AI drones, robots and eliminating redundant programs could yield substantial savings.


  • Digital Transformation Savings: According to McKinsey & Company, digital transformation in public sectors could lead to savings of up to $1 trillion globally. For the U.S., embracing digital governance could potentially save tens of billions annually.


  • Efficiency Improvements: The Office of Management and Budget (OMB) has identified efficiency improvements in federal agencies that could save billions. For example, optimizing procurement processes and reducing improper payments could result in significant cost reductions. And making government contracts more economically competitive without undo political interference that generally drives up costs, wasting tax payer dollars.

Conclusion


Drawing inspiration from the successes of Switzerland, Estonia, Singapore, and New Zealand, the United States can unlock significant cost savings, reduce overhead and enhance its long-term economic competitiveness by implementing targeted reforms. These reforms could include decentralizing certain government functions, embracing digital transformation to streamline service delivery, adopting performance-based budgeting to prioritize outcomes and accountability, and potentially incorporating a more technocratic approach to decision-making. While the exact financial impact is difficult to quantify, addressing inefficiencies and adopting global best practices could result in billions of dollars in annual savings for the US government. Although such transformative changes may require a period of adjustment and refinement, the potential long-term economic benefits for the nation far outweigh the initial challenges.


About Author


J Dean - Director, ABV ... J Dean delivers over 40 years of experience across a wide range of industries worldwide. He is considered by many to be a leading research expert in the energy industry, healthcare, sports, environmental studies, business market analysis, eCommerce and AI technology solutions. Mr. Dean has been a frequent Evangelist at conferences worldwide. Currently, among the many projects, J Dean is focused on enhancing Digital Content Networks and Tokenized Asset eCommerce Programming Solutions. He is a graduate of Boston University. J Dean enjoys collecting antiques, historical vintage items, travel and sports fitness. Email Us​

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