Elon Musk Calls Social Security A ‘Ponzi Scheme’

Tech billionaire Elon Musk falsely claimed in an interview with Joe Rogan on Friday that the Social Security system that more than 70 million older Americans rely on as a significant source of income is a “Ponzi scheme.” Musk has described the federal government as “one big pyramid scheme.”

Musk has been weighing in on many issues recently, including calling for the U.S. to leave the U.N. and NATO.

The Department of Government Efficiency (DOGE), created by President Donald Trump and led by Musk, has already pushed the Social Security Administration to announce a plan to cut roughly 7,000 staffers. The DOGE leader has frequently posted to his social platform X regarding the system, promoting claims about alleged fraud and “inconsistencies” he thinks he has identified.

In one post, Musk claimed millions of people over 130 received Social Security checks. He said it was perhaps “the biggest fraud in the history of humanity.” Musk believes the U.S. entitlement systems need repair because birth rates have fallen and post-retirement life expectancy has increased.

“Fewer babies are being born,” the billionaire said on Rogan’s popular podcast, “and you have more people who are retired that live for a long time and get [Social Security] payments.” 

Democrats were quick to pounce on Musk’s statement.

“Now we know that something we Senate Democrats have feared for a long time is coming true. Social Security is under attack and at risk,” Senate Minority Leader Chuck Schumer said at a Capitol Hill news conference. Schumer, Senate Finance Committee Ranking Member Ron Wyden (D-Oregon), Senate Appropriations Committee Vice Chair Patty Murray (D-Washington) and Sen. Amy Klobuchar (D-Minnesota) argued that the cuts to the Social Security workforce are merely a step in the Republicans’ broader plan to privatize the vital benefits system.

House Speaker Mike Johnson responded to Musk’s criticism Sunday on NBC’s Meet the Press. He stated that any efforts led by Musk to examine Social Security will only target “fraud, waste and abuse.” The Office of the Inspector General reported in August 2024 that less than one percent of its payments were deemed “improper” between fiscal years 2015 and 2022.

Democratic lawmakers have grown uneasy about possibly dismantling key social safety net benefits. Former Social Security Administration commissioner Martin O’Malley warned on CNBC that “people should start saving now” and “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.”