On Monday, Elon Musk emphasized the high cost of federal entitlement programs. Reinforcing his push to shrink the federal government, concerns grew over potential cuts to Social Security, Medicare, and Medicaid. Significantly, Musk’s recent remarks on entitlement spending sparked a wave of headlines and posts.
Musk stated in an interview with Fox Business’ Larry Kudlow:
“Most of the federal spending is entitlements. So that’s the big one to eliminate. That’s the sort of half trillion, maybe six, 700 billion.”
As opponents claimed Musk’s interview signaled the administration’s plan to target security, the White House response team defended his remarks.
X post on a Tuesday morning stated:
“Lying hacks. He was talking about waste, fraud, and abuse — of which there is $500+ billion every year.”
The Social Security Administration’s inspector general reported that the agency issued $72 billion in improper payments from 2015 to 2022. Moreover, accounting for less than 1% of the $8.6 trillion in total benefits distributed during that period.
During Monday’s interview, Musk referenced a Government Accountability Office report estimating that fraud could cost up to $521 billion annually. However, the report addressed the entire government, not just Social Security changes.
Sen. Bernie Sanders argued that Musk’s push for Medicare cuts to mandatory federal spending moves the country toward privatization.
Sanders stated in an interview with CNN:
“Well, he has called Social Security a Ponzi scheme. They have already laid off 2,500 employees of the Social Security Administration. If you ask me, I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that’s in the back of their mind.”
Public data from the Social Security Administration reveals that in December 2024, about 89,000 people received Social Security benefits. In a February statement, SSA Acting Commissioner Leland Dudek attempted to clarify the facts.
Dudek stated:
“The reported data are people with a Social Security number who do not have a date associated with their record. These individuals are not necessarily receiving benefits.”
Musk’s remarks conflict with top GOP leaders’ pledges to protect benefits for Americans. Trump has repeatedly vowed to preserve Social Security. In addition, House Speaker Mike Johnson assured last month that Republicans will not cut Social Security. They push forward with Trump’s expansive legislative agenda.
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Musk’s remarks on spending and the Social Security Administration’s restructuring highlight the ongoing debate over the future of federal programs. While GOP leaders have pledged to protect Social Security, Musk’s push for spending cuts raises concerns about potential policy shifts.
The SSA’s decision to downsize its workforce reflects broader efforts to streamline government operations with the Trump administration’s agenda. As discussions on federal spending continue, the tension between fiscal responsibility and safeguarding essential benefits remains a key issue.
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