On the fourth Wednesday of each month, a four-figure amount from the U.S. government gets deposited into my bank account. I wouldn’t want to try to subsist solely on my Social Security check, but it’s an invaluable source of income for me in my semi-retirement, and it’s a fund I’ve contributed to since I was in high school, working as a pharmacy stock boy.
President-Select Elon Musk said on Joe Rogan’s podcast recently that Social Security is a “Ponzi scheme” and spouted several statistics that were quickly debunked. “We’ll make mistakes,” Musk said, when asked about it. That didn’t stop President Trump from repeating Musk’s statistical lies in his address to Congress last week. Trump added that Social Security suffered from “shocking levels of incompetence and probable fraud.”
Let’s look at their claims: A Ponzi scheme is a system in which the con artist tricks a lot of people into investing in a scam. If investors want to withdraw their money, the scammer pays back the early investors with money he’s gotten from more recent investors.
In a broad sense, that is the case with Social Security; the people paying into it now are covering the checks of those who are retired or disabled. If, as is happening now, the birth-rate goes down and people are living longer, there can be a funding problem. But, as many economists have pointed out, the solution is simple: Americans contribute to Social Security up to an annual income of $176,000. Raising the top salary level for paying into Social Security to $200,000 would fix the issue for years to come. Another Social Security Administration (SSA) analysis says that an “increase in the combined payroll tax rate from 12.4 percent to 14.4 percent” would make the program sustainable for the next 75 years. That’s not a Ponzi scheme or a crisis. It’s an amendable budget line-item that Congress could address tomorrow.
Regarding Trump’s statements about incompetence and fraud? As hard as it is to believe, he’s lying. Trump told Congress and the American public that 16 million people over the age of 100 received Social Security payments, including 130,000 supposedly over 160 years old. As several media outlets reported after Musk first made these allegations, the SSA’s beneficiaries chart shows that just 89,106 people over age 99 are receiving retirement funds. That number (which includes my own dear mother) is a long way from 16 million. As for fraud, the SSA inspector general reported in 2024 that .84 percent of benefits paid between 2015 and 2022 were improper.
So why are the two most powerful men in the country spewing disinformation about the SSA? Simple. They are attempting to soften up the public for cuts in services. DOGE, Musk’s stealthy pseudo-government agency, is cutting 7,000 SSA workers for starters, and the number of regional SSA offices has been trimmed from 10 to four. Will that mean those of us who receive SS checks should worry? I’m going to go with “yes.”
Here’s what former SSA chief Michael O’Malley told CNN: “Ultimately, you’re going to see the system collapse and an interruption of benefits. … I believe you will see that within the next 30 to 90 days.”
This is speculation, of course, and O’Malley is a Democrat, but here’s what Leland Dudek, the man Trump appointed to head SSA, said in a recent meeting, according to The Washington Post: “DOGE people are learning and they will make mistakes, but we have to let them see what is going on at SSA. I am relying on longtime career people to inform my work, but I am receiving decisions that are made without my input. I have to effectuate those decisions.” Reassuring, eh?
Here’s the bottom line on all this: The “DOGE people” have access to the personal and financial information of every American citizen — living or dead — who has paid into Social Security. What they will do with that private intel is anybody’s guess because they sure aren’t going to tell us. I do know this much: If DOGE screws up with the SSA as badly as they’ve screwed up with some of the other government agencies they’ve defenestrated, our social security benefits could very well be interrupted. If that happens, it will be torch-and-pitchfork time among the citizenry. And it won’t be pretty.
