Summary
Elon Musk suggested cutting Social Security, Medicare, and Medicaid in a Fox News interview, citing debunked claims about fraud and linking benefits to illegal immigration.
He falsely claimed millions of deceased individuals remain in the Social Security system, a statement previously refuted by officials.
While Trump has promised not to cut entitlement programs, Musk’s remarks indicate they are under threat, potentially impacting millions of Americans.
His rhetoric echoes far-right conspiracy theories, raising concerns about his influence on policy discussions regarding social safety nets.
Social Security’s “trust fund” is an empty pit of debt obligations. Benefits to current recipients are paid with incoming payroll taxes. Any difference is made up with additional taxes or monetary inflation, by way of Treasury bonds. They “reinvest it in the economy” if there’s ever a surplus, e.g., through military contractors. It finances the national debt.
Putting aside the quirks of that setup, the basic function is that the taxes you pay in now are not an investment in your own future, you’re basically just paying for the retirement of older people now. The expectation is that someone down the road will then pay taxes to finance your retirement. Hence, how SS was able to start paying benefits almost immediately (3 years) after payroll taxes started being collected.
That’s all technically correct. That’s how it works in a lot countries, Europe included. But that’s not how it feels, or what people think is going on. They’re paying into a system that is going to benefit them. Even if what they receive is derived from future taxes on other people. They contributed to the system, therefore they are also entitled to benefit from it.