Finance
Politics
In a move that has sent shockwaves through Washington, Elon Musk's Department of Government Efficiency (DOGE) has gained access to sensitive data from the Social Security Administration, sparking concerns about privacy and the stability of the program. This development follows a leadership shakeup at the SSA, where the acting head, Michelle King, was replaced by Leland Dudek, an anti-fraud official. The rapid-fire changes have raised alarms about the potential destabilization of a program that provides financial assistance to over 72 million older Americans and millions more reliant on disability benefits.
Musk's stated goal is to root out fraud, citing claims of unlawful issuances of Social Security checks and even suggesting that the program could be involved in what "might be the biggest fraud in history." However, critics like Nancy Altman, president of Social Security Works, view this as a "fishing expedition" that could undermine the safety net without justification. Altman argues that Musk could achieve his objectives without blanket access to sensitive data, which includes Social Security numbers, medical histories, and earnings records of every American.
"This is a fishing expedition," Altman emphasized, highlighting concerns about privacy and the potential for deeper reforms that could impact millions. "I don't know what they want, but whatever they want, that's why we have privacy laws," she added.
Musk's efforts are part of a broader pattern of seeking access to sensitive information across federal agencies, including the Treasury Department, IRS, and Labor Department. These moves have faced legal challenges and raised questions about their legality.
The Social Security Administration is often referred to as the "third rail of American politics," a term coined by an aide to former Speaker of the House Tip O'Neill, suggesting that any politician who touches it risks political backlash. George W. Bush later echoed this sentiment, saying, "You grab ahold of it, and you get electrified." The program's significance and the potential for political fallout make Musk's actions a high-stakes gamble.
Musk has claimed that his focus is on ensuring that those who deserve Social Security benefits receive them accurately and quickly. However, his assertions about widespread fraud, including claims of 150-year-olds on the rolls, have been disputed. Critics point out that these claims may stem from a programming quirk in the SSA's system, which defaults to a birth date of May 20, 1875, if a recipient's birth date is missing.
The Social Security Administration's inspector general reported that improper payments from 2015 to 2022 accounted for about 0.84% of total payments, contradicting the narrative of widespread fraud. Despite these findings, Musk and Trump aides continue to push for investigations into alleged fraud, with White House Press Secretary Karoline Leavitt stating that they suspect tens of millions of deceased individuals may be receiving payments.
As the battle over Social Security intensifies, it remains to be seen how Musk's efforts will impact the program's stability and the lives of millions who depend on it. The clash between Musk's team and critics like Altman underscores the political and social complexities of reforming a program that is deeply ingrained in American life.
Source:
Ben Werschkul, Washington Correspondent, Yahoo Finance https://finance.yahoo.com/news/musks-move-to-take-on-social-security-tests-the-third-rail-of-american-politics-180946025.html
Image Credit: Jabin Botsford/The Washington Post via Getty Images

