The Hidden Threat to American Capitalism

Trump's DOGE Agency Launch Coincides with Push Against Stakeholder Capitalism and ESG

The Trump administration's newly established Department of Government Efficiency (DOGE) launches amid both legal challenges and growing pushback against stakeholder capitalism, according to watchdog group OpenTheBooks and former CKE Restaurants CEO Andy Puzder.

The agency, created through executive order on January 20, 2025, faces three lawsuits filed before Trump's inauguration ceremony concluded. However, the administration aims to circumvent these challenges by repurposing the Obama-era U.S. Digital Services office, housing DOGE within the Executive Office of the President.

The launch comes as major financial institutions appear to be retreating from controversial Environmental, Social, and Governance (ESG) initiatives. BlackRock, which along with State Street and Vanguard controls voting rights in about 80% of S&P 500 companies, recently withdrew from the Net Zero Asset Managers Initiative, leading to the organization's suspension of operations.

"This isn't the end, it's not the beginning of the end, it is perhaps the end of the beginning," says Puzder, quoting Winston Churchill to describe the current pushback against ESG and DEI (Diversity, Equity, and Inclusion) initiatives. He warns that while companies are distancing themselves from these terms, observers should watch proxy voting guidelines and executive compensation metrics to ensure substantive change.

OpenTheBooks' investigation revealed that roughly 17% of the 441 agencies listed in the Federal Register are defunct, with some having ceased operations decades ago. The findings highlight significant record-keeping issues within the federal government's official journal, adding urgency to DOGE's efficiency mandate.

One of the plaintiffs challenging DOGE, the American Public Health Association, received $6.9 million in federal grants last year for diversity, equity, and inclusion initiatives – funding that could be at risk under the new administration's cost-cutting measures.

The story is based on information from OpenTheBooks, a project of American Transparency, a 501(c)(3) nonprofit organization, and an interview with Andy Puzder, former CEO of CKE Restaurants.

Trump's DOGE Agency Aims to Modernize Government by Repurposing Digital Services

The Trump administration's newly established Department of Government Efficiency (DOGE) seeks to streamline federal operations by transforming the existing U.S. Digital Service (USDS) into a government-wide efficiency initiative, according to new details from watchdog group OpenTheBooks and Congressional documents.

DOGE repurposes USDS, which was created after Healthcare.gov's troubled rollout to improve government technology. Originally housed in the Executive Office of the President, USDS has a track record of successfully modernizing critical public services. Its projects include digitalizing 100% of naturalization applications, building COVID-19 vaccine finder tools used by over 184 million people, and reducing technical hiring times from 45 to 16 days.

The agency faces immediate legal challenges, with three lawsuits filed before Trump's inauguration ceremony concluded, claiming DOGE violates the Federal Advisory Committee Act (FACA). However, by repurposing USDS rather than creating a new advisory committee, the administration aims to avoid FACA's requirements for politically balanced membership and public meetings.

Under DOGE's new mission, four-person teams will be deployed across agencies to implement an 18-month efficiency agenda ending July 4, 2026. This comes as OpenTheBooks revealed that roughly 17% of the 441 agencies listed in the Federal Register are defunct, with some having ceased operations decades ago.

"If we can't keep tabs of these in DC's official record book, how will we ever get to a leaner, more effective government?" questioned OpenTheBooks.

One of the plaintiffs challenging DOGE, the American Public Health Association, received $6.9 million in federal grants last year for diversity, equity, and inclusion initiatives – funding that could be at risk under the new administration's cost-cutting measures.

DOGE represents a significant expansion of USDS's original mission of improving government technology to now include broader government reform. According to its charter, USDS's core values include "Find the truth. Tell the truth" and "Optimize for results, not optics" - principles that may shape DOGE's approach to efficiency.

The story is based on information from OpenTheBooks, a project of American Transparency, Congressional Research Service documents about FACA requirements, and USDS mission statements.

The Hidden Threat to American Capitalism, Explained by Andrew Pudzer - YouTube

President Donald Trump appointed Andrew Puzder ambassador to the European Union this past week. But before he heads to Brussels, Puzder is warning about the left-wing scourge of stakeholder capitalism. As the former chief executive of CKE Restaurants, a major fast food corporation operating Carl’s Jr. and Hardee’s, Puzder knows what it takes to run a successful business. That’s why he’s so alarmed at the trends he’s witnessing in corporate America. He spoke to The Daily Signal about his new book, “A Tyranny for the Good of its Victims: The Ugly Truth about Stakeholder Capitalism.” In this episode, we cover: • How BlackRock, Vanguard, and State Street accumulated unprecedented control over U.S. corporations • The real meaning behind ESG policies and their impact on American business • Why major brands are adopting policies that seem to conflict with their customer base • The effectiveness of consumer boycotts against woke corporate policies • Capitalism’s historic role in reducing global poverty

Purchase your copy of “A Tyranny for the Good of Its Victims” on Amazon: https://amzn.to/4ayJ1gZ