Elon Musk is calling Social Security a “Ponzi scheme,” prompting suspicion that the world’s richest man is merely hoping to privatize a social safety net that has existed since the 1930s — and has kept millions of elderly, poor and disabled Americans from destitution.
The billionaire argued Friday on “The Joe Rogan Experience” podcast that the United States government is “one big pyramid scheme” before blasting Social Security as “the biggest Ponzi scheme of all time.”
When asked to clarify, Musk said, “Well, people pay into Social Security and the money goes out of Social Security immediately, but the obligation for Social Security is your entire retirement career. If you look at the future obligations of Social Security, it far exceeds the tax revenue.”
Musk, who oversees Trump’s cost-cutting initiative for federal spending, the Department of Government Efficiency, added that “people are living way longer than expected” and thus the government’s obligation to pay the debt “will be much worse in the future.”
He is far from the first conservative to characterize Social Security as a “Ponzi scheme,” which refers to a type of fraud in which existing customers get payouts that come from the investments of new customers.
The Social Security Administration has said it could face a shortage of funds by 2035. But many Democrats have argued that the program’s funds should simply be shored up by eliminating the cap on Social Security taxes for high earners, meaning that people who make a lot of money would pay proportionately more into the program.
Elsewhere during his podcast appearance, Musk shared debunked claims about Social Security.
“We found just with a basic search of the Social Security database that there were 20 million dead people marked as alive,” Musk said, prompting host Joe Rogan to ask if these supposed dead people are actually receiving money and how much of it they’re getting.
“Some of them are getting money,” Musk said.
He made similar comments last month, falsely claiming that “tens of millions” of dead people are receiving Social Security benefits. That misconception stems, in part, from the way data is labeled in Social Security’s software system, The Associated Press reported. A 2024 report from SSA’s inspector general found less than 1% in improper payments from 2015 to 2022, and most of those were overpayments to people who were alive.
Musk’s comments on Social Security landed as the agency faces dramatic cuts, telling its employees Thursday that there will be a massive reorganization involving “significant workforce reductions.”