Fact check: Elon Musk calls Social Security a 'Ponzi scheme'

Business and Finance Business and Finance

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Fact check: Elon Musk calls Social Security a 'Ponzi scheme'

^{Published on 2025-03-24 16:20:52 - WRAL}

In an interview with podcaster Joe Rogan, billionaire businessman and White House adviser Elon Musk resurrected a term that Social Security critics have sometimes used to describe the program, calling it a Ponzi scheme.

Elon Musk, in a tweet, referred to Social Security as a "Ponzi scheme," sparking a debate about the sustainability and structure of the program. Social Security is a federal insurance program funded through payroll taxes, where current workers' contributions support current retirees. Critics like Musk argue that it resembles a Ponzi scheme because it relies on an ever-increasing number of contributors to pay benefits, which becomes problematic as the population ages and birth rates decline. However, experts counter this by explaining that Social Security is not a Ponzi scheme because it is backed by the full faith and credit of the U.S. government, has transparent funding mechanisms, and its issues stem from demographic changes rather than fraudulent intent. They point out that while adjustments might be necessary to ensure its long-term viability, the program's structure is fundamentally different from the illegal schemes run by individuals like Charles Ponzi, where returns are paid to earlier investors using the investments of more recent investors.

Read the Full WRAL Article at:
[ https://www.wral.com/story/fact-check-elon-musk-calls-social-security-a-ponzi-scheme/21926444/ ]

N@N

Fact check: Elon Musk calls Social Security a 'Ponzi scheme'