Social Security Comments Elon Musk is called former administrator star-news.press/wp

Former Social Security Administration (SSA) Commissioner Martin O’Malley invited Elon Male for claims that the social security is “Ponzi Schema”.

Why is it important

O’Malley, who led the Government Agency during the latter part of Biden Administration, was a vocal critic of Adutian administration and musk for their handling of the SSA last week.

Musk criticized social security, who pays a pension, survivors and disability for dozens of millions of Americans each month, during the podcast with Joe Rogan in February.

Musk, which is a sheltered department for government efficiency (Doge) on behalf of President Donald Trump, said that the social security is the “biggest ponzi scheme of all time”.

What to know

Responding to Mosšk’s comments, O’Malley said in an interview at MSNBC to “If social security was a Ponzi scheme, it should not be done for 90 years.”

The Ponzi scheme is a false installation of investment where money from new investors is used to pay existing ones. Social insurance payments are financed from dedicated salary tax collected from workers. Any excess not used is kept in a dedicated fund for trust: age and insurance fund and survivor insurance and a disability insurance fund.

“Social security is a payment program and IS, and the truth is that the excess reservation that is built to last the lifetime of a baby bottle like me, exhausted before it is expected,” O’Malley explained.

It is true: Start 2021. year, social security began using reserves of confidential funds to help cover the payments of fees. Combined funds are expected to remain solvent by approximately 2035. years, when, if the Congress does not find any solution to continue financing the current, the benefits can be automatically reduced by 17 percent.

O’Malley is not the only democrat to call musk for his comments. Senators Bernie Sanders and Chuck Schumer, as well as representatives of Aleksandria Ocasio-Cortez and Greg Casser, did not agree with the request.

SSA staff Cull

The recognition of the problem, O’Malley said the problem could be fixed, but also drawing attention to recently announced staff cuts, also a prominent threat to the provision of the Agency’s services.

Last month, the SSA said that they would release some 7,000 staff members to reduce the size of its inflated labor and organizational structure. “

O’Malley is critical of plans. He said that due to a decrease was likely to be “casual disorders” “IT aspects that process receivables”, leading to “a cascading effect that we will see if we can see in termination of use for a while in the next 30 to 90 days.”

Speaking in the second interview at MSNBC with the Host Michael Steele, O’Malley said he believed that Doge “do everything I can break this agency.”

Newsweek He contacted Doge and SSA to answer O’Malley comments by email out of ordinary working hours.

What do people say

Musk, speaking to Joe Rogan Experience Podcast Published 21. February: “There are our present debt, but we are our future obligations. So when you look at the future liabilities of social security, so they are retired. Thus, future obligations. So the future is the poor financial situation for the Federal Government, it will be much worse in the future.”

The leader of the minority of the Senate Chuck Schumer said after the comment of musk: “Elon Musk says it’s a ponzi scheme. The richest man in the world speaks Americans who have earned the benefits that depend on it and they are not cheated. And if Americans know that.”

Senator Bernie Sanders in Post on x, earlier Twitter: “Musk says massive waste and social security scam. It is not true. Musk says that social security is a ponzi. What is the goal of this disinformation campaign in history and give it to Wall Street.”

In a press release in terms of decreasing staff issued by SSA 28. February: “The Agency plans to reduce the size of its drawn labor and organizational structure, with a significant focus on functions and employees who do not provide direct critical services. Social security of 50,000, from existing levels of about 57,000 employees.”

What’s next

There are numerous changes to the SSA. In addition to the decrease in staff, some internal departments and contracts are canceled, as new rules are announced around returning beneficiaries.