Summarize this content to 2000 words in 6 paragraphs Billionaire Elon Musk called Social Security “the biggest Ponzi scheme of all time” during an interview with podcaster Joe Rogan released on Friday, drawing criticism and warning from Democrats, including Representative Alexandria Ocasio-Cortez of New York.Why It MattersSocial Security is a federal program that provides retirement, disability, and survivor benefits to eligible workers and their families. In 2023, around 71.6 million people received benefits from programs administered by the Social Security Administration (SSA), the agency reported.Although President Donald Trump has pledged not to cut Social Security, some skeptics remain concerned he may reconsider, especially given the recent involvement of his close adviser Musk, and his Department of Government Efficiency (DOGE) task force digging into federal agencies to root out waste, fraud and abuse.The SSA, which started in 1935, faces a funding crisis that could leave the program unable to pay full benefits by the mid-2030s.What To Know In a Friday episode of the Joe Rogan Experience, a podcast with around 11 million listeners, Musk told Rogan that the federal government is “one big pyramid scheme,” and called Social Security “the biggest Ponzi scheme of all time.”Pyramid and Ponzi schemes are fraudulent financial models that deceive new participants, relying on recruitment or fresh investments rather than generating legitimate profits.Since taking office, Trump as well as Musk have criticized Social Security, with the president last week calling the age database “a scam” and conflating claims of people appearing in the database with those actually receiving benefits.”We found just with a basic search of the Social Security database that there were 20 million dead people marked as alive,” Musk told Rogan, adding that “some of them are getting money.”When Rogan asked for specifics, Musk did not provide a definitive number.While cases of benefit fraud have occurred, fewer than 1 percent were reported in July 2024 by the SSA inspector general, and the majority of payments were made to living people.Many Democrats have pushed back against Trump and Musk’s criticism of Social Security, including the former Social Security Commissioner Martin O’Malley who said at a February rally against DOGE interference, “Elon Musk, keep your hands off Social Security.”Ocasio-Cortez shared a clip of Musk calling the program “the biggest Ponzi scheme” on X, formerly Twitter, and wrote on Saturday: “This guy is a leech on the public. No matter how many billions he gets in tax cuts and government contracts, it will never be enough for him.”Musk, the world’s richest person, owns and is the CEO of several tech companies, including SpaceX, Tesla, Neuralink, The Boring Company, some of which have lucrative government contracts.The Democratic congresswoman added in her X post: “Now he’s going after the elderly, the disabled, and orphaned children so he can pocket it in tax cuts for himself,” referring to his stance on Social Security. “It’s disgusting.”This guy is a leech on the public. No matter how many billions he gets in tax cuts and government contracts, it will never be enough for him.Now he’s going after the elderly, the disabled, and orphaned children so he can pocket it in tax cuts for himself.It’s disgusting. https://t.co/9jYVk31rJG— Alexandria Ocasio-Cortez (@AOC) March 1, 2025
Musk has often been referred to as “president” or “co-president” by Democrats and critics because of his significant influence in Washington, which began before Trump’s inauguration with his mid-December involvement in the federal budget resolution.Musk leads the task force advocating for federal budget cuts and workforce reductions, which at times has been criticized by some Republicans, including Senators Susan Collins of Maine and Lisa Murkowski of Alaska.In addition to thousands of layoffs, which are ongoing, about 75,000 federal employees accepted buyouts and left their positions before the cuts began.
Elon Musk speaks at the Conservative Political Action Conference on February 20 in Oxon Hill, Maryland.
Elon Musk speaks at the Conservative Political Action Conference on February 20 in Oxon Hill, Maryland.
AP Photo/Jose Luis Magana
What People Are Saying Senator Ron Johnson, a Wisconsin Republican, previously echoed Musk’s sentiments, writing in a February 2023 X post: “Unfortunately, Social Security surpluses were spent and never invested in assets that have value to the U.S. Government. It is a legal Ponzi scheme. Now, the greatest threat to these programs is out of control deficit spending and our growing debt.”Senator Patty Murray, a Washington Democrat, wrote in an X post on Saturday: “Social Security is not a Ponzi scheme it’s a promise that every American pays into so they can retire with dignity. Get loud and tell Elon Musk to keep his hands OFF social security.”Representative Greg Casar, a Texas Democrat, wrote on Saturday in an X post: “A guy who makes $8 million a day off the government thinks seniors getting $65 a day they worked their whole lives to earn is a ‘ponzi scheme.’ Protect Social Security. Fire Elon Musk.”Warren Gunnels, a Democrat staffer for independent Senator Bernie Sanders who caucuses with the Democratic Party, wrote in an X post on Saturday: “Elon Musk, the richest man alive, worth $359.4 billion, wants you to work until you drop dead. Social Security was signed into law 90 years ago. It has paid every benefit owed to every eligible American on time for 86 years & lifts over 20 million people out of poverty a year.”Representative Marjorie Taylor Greene, a Georgia Republican, wrote in a February 25 X post: “The Dems are throwing a fit over @elonmusk’s efforts to cut waste & fraud in govt, but 72% of Americans support @DOGE! They’re defending big government and a bloated bureaucracy that doesn’t generate revenue—it just burns through taxpayer dollars. We cannot afford to maintain the status quo when we’re $36 trillion in debt!”What Happens Next? On Friday, the SSA announced plans to cut 7,000 jobs, reducing its workforce from about 57,000 to 50,000 employees. The decision follows DOGE recommendations to slash the federal workforce. However, it also comes as the agency already struggles with staffing shortages.Agencies are required to submit their reduction in force plans (RIF) to the Office of Personnel Management (OPM) by March 13.Nancy Altman, president of the advocacy group Social Security Works, said in a statement that “the Social Security Administration is already chronically understaffed. Now the Trump Administration wants to demolish it.”
