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Elon Musk referred to the social security program as a "Ponzi scheme," sparking skepticism about the world's richest man's desire to privatize the long-standing social security network dating back to the 1930s - which helps millions of American elderly, poor, and disabled people get out of trouble. The billionaire argued on the "Joe Rogan Experience" podcast last Friday that the U.S. government is "a giant pyramid scheme," and then attacked social security as "the biggest Ponzi scheme plan in history." When asked for clarification, Musk said, "Yes, people pay into social security, and that money is immediately paid out from social security, but social security is responsible for your entire retirement life. If you look at the future obligations of social security, it far exceeds tax revenue." Musk, the overseer of the Trump administration's spending cuts, said the government's debt obligations "will be much worse in the future" because people's life expectancies are much longer than expected. He is not the first conservative to describe social security as a "Ponzi scheme," implying a fraudulent form in which current clients receive payments from investments made by new clients. Social security officials say they may face funding shortages by 2035. But many Democratic members argue that the program's funding should be strengthened by lifting the social security tax cap on high earners, meaning those who earn more money will need to contribute more to the program. In his online broadcast, Musk shared false statements about social security. Musk said:"Just by doing a basic search in the social security database, we found 20 million people marked as still alive," prompting host Joe Rogan to ask whether those deemed deceased actually received money and how much. "Some of them are receiving money," Musk said. Last month, he made similar remarks, incorrectly claiming that "millions" of people who have passed away are receiving social security. This misconception partly stems from the way data is marked in the social security software system, according to the Associated Press. A report from the Social Security Inspector General's Office in 2024 found that less than 1% of payments were incorrect from 2015 to 2022, most of which were overpayments to people still alive. Musk's comments on social welfare come amid serious layoffs at the agency. On Thursday, he told employees that a "major reorganization" involving significant layoffs would take place. On Thursday, Vermont Senator Bernie Sanders I-Vt. criticized the ongoing attacks on social security. Sanders wrote, "Social security helps 18 million elderly people escape poverty every year." The senior senator proposed that he has introduced legislation to expand social welfare, adding, "Trump and Musk are lying because they have a reason: to be able to cut, privatize, and abolish it. We must expand social welfare, not cut it."
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