economics Paradigm Challenge

Threatening workers with mass layoffs causes them to stop donating to the political opposition rather than motivating them to fight back.

April 1, 2026

Original Paper

Demobilization Without Backlash: Campaign Donations and the DOGE Workforce Reduction

Muzhi Liu

SSRN · 6397238

The Takeaway

While common sense suggests that economic threats would trigger a 'backlash' of political donations, this study of the 2025 federal workforce found the opposite: a sharp drop in giving. This 'anticipatory demobilization' suggests that the fear of a coming economic shock silences political participation before the harm even occurs.

From the abstract

Does economic harm to government workers translate into political backlash through campaign donations? I study the Department of Government Efficiency (DOGE), which separated approximately 317,000 federal employees in 2025. Comparing the first post-inauguration years of Trump's two terms-2017 (no comparable workforce shock) and 2025 (DOGE)-I find that federal workers' Democratic donations were sharply lower in early 2025, with a 0.46 log-point decline in January before any realized cuts. This ea