Tesla CEO Elon Musk Critiques Social Security Payment System
As staffing cuts at the Social Security Administration (SSA) leave millions of Americans uncertain about their monthly benefits—raising concerns among former SSA leaders across the political spectrum—Howard Lutnick, the Secretary of Commerce, suggests that individuals should not complain if their checks do not arrive.
“Let’s say Social Security didn’t send out their checks this month—my mother-in-law, who’s 94, she wouldn’t call and complain. She just wouldn’t,” Lutnick remarked during an appearance on the All-In Podcast with hosts David Friedberg and Chamath Palihapitiya on Thursday. “She’d assume something went wrong and that she’d receive it next month.”
Lutnick was answering a question from Palihapitiya about whether acts of so-called “domestic terrorism”—which seemingly reference recent vandalism against Tesla vehicles and showrooms— are designed to intimidate those investigating “waste and fraud” within the government.
“A fraudster always makes the loudest noise, screaming, yelling, and complaining,” he continued. “Anyone familiar with payment systems knows that the best way to find fraud is to halt payments and listen; the one shouting is the one stealing.”
His statements come amid a movement associated with DOGE that aims to cut federal spending by reducing the workforce of government employees. Musk, actively promoting DOGE, has voiced his concerns about substantial fraud in the Social Security payment system, echoing his earlier comments.
The SSA announced on February 28 its intention to eliminate approximately 7,000 jobs and to reorganize its system in accordance with recent executive orders from the White House.
Documents submitted in the District Court of Maryland revealed that the Trump administration had established a 10-person DOGE team at the SSA tasked with investigating alleged fraud. Seven of these members were given read-only access to sensitive personal data within agency databases. However, a federal judge ruled on Thursday that DOGE could not access Social Security records, stating they could not “flout the law.”
“The DOGE Team is essentially engaged in a fishing expedition at the SSA, in search of a fraud epidemic based on little more than suspicion,” wrote US District Judge Ellen Hollander.
As per a fact sheet from the SSA, nearly 69 million Americans are expected to receive Social Security benefits monthly in 2025, amounting to approximately $1.6 trillion in annual payouts. More than 7 million individuals aged 65 and older rely on Social Security for at least 90 percent of their income, according to SSA statistics.
On Tuesday, Lee Dudek, acting commissioner of the SSA, stated at a press conference that around $100 million is lost annually due to direct deposit fraud, which represents about 0.00625% of the total amount disbursed each year.
