WASHINGTON (AP) — Elon Musk pushed debunked theories about Social Security on Monday while describing federal benefit programs as rife with fraud, suggesting they will be a primary target in his crusade to reduce government spending.
The billionaire entrepreneur, who is advising President Donald Trump, suggested that $500 billion to $700 billion in waste needed to be cut.
“Most of the federal spending is entitlements,” Musk told the Fox Business Network. “That’s the big one to eliminate.”
The comments on the popular program and other benefits provided to Americans could rattle politicians on both sides of the aisle as Musk works to downsize the federal government, especially as he already faces blowback for his chainsaw-wielding approach to laying off workers and slashing programs.
Musk's estimate for the level of fraud in entitlements far outpaces figures from watchdogs like Social Security's inspector general, who previously said there was $71.8 billion in improper payments from fiscal years 2015 through 2022. That's less than 1% of benefits paid out during that time period.
Musk also said there were “20 million people who are definitely dead marked as alive in the Social Security database.” However, the leader of the agency has rejected claims about widespread payments to dead people.
"These individuals are not necessarily receiving benefits," said Lee Dudek, Social Security’s acting commissioner.
The interview with Fox Business was a reminder of Musk's deep skepticism and even hostility toward the program, which provides monthly benefits to retirees and some children. Trump has promised to defend Social Security from cuts, but Musk has described it as “the biggest Ponzi scheme of all time,” and the administration is shutting down some of the agency’s offices.
Musk said Monday that federal entitlements are “a mechanism by which the Democrats attract and retain illegal immigrants by essentially paying them to come here and then turning them into voters.” The allegation echoed the “great replacement” theory, which claims that politicians are trying to expand their power by reshaping the country's racial demographics.
The interview was conducted in the White House complex by Larry Kudlow, who served as an economic adviser to Trump during his first term. During the conversation, Musk seemed to acknowledge the unusual nature of his role in the administration.
“Frankly, I can’t believe I’m here doing this," Musk said. "It's kind of bizarre.”
Musk is the world’s richest person and still runs his private enterprises as he advises the president on ways to overhaul the federal government.