Politics
Expert turns tables on Dem critics after Musk accuses Social Security of being 'Ponzi scheme'
Democrats have pushed back after Elon Musk claimed that social security operates like a “Ponzi scheme” as he continues to argue for cuts to the federal bureaucracy, but one expert tells Fox News Digital that Musk is on track with his criticism of the agency.
“Musk’s statement about Social Security being the world’s biggest Ponzi scheme does have validity,” James Agresti, president of the nonprofit research institute Just Facts, told Fox News Digital in response to pushback from Elon Musk’s claim, which included a “false” rating from Politifact.
“A Ponzi scheme operates by taking money from new investors to pay current investors. That’s the definition given by the SEC, and contrary to popular belief, that’s exactly how Social Security operates.”
Agresti explained to Fox News Digital that Social Security, believed to be a target of Musk’s efforts at DOGE, “doesn’t take our money and save it for us, as many people believe, and then give it to us when we’re older” like many Americans might believe.
EXPERT REVEALS MASSIVE LEVELS OF WASTE DOGE CAN SLASH FROM ENTITLEMENTS, PET PROJECTS: ‘A LOT OF FAT’
Just Facts President James Agresti spoke to Fox News Digital about opportunities to cut Social Security. (Fox News/Getty)
“What it does is, it transfers money when we are young and working and paying into Social Security taxes,” Agresti said. “That money, the vast bulk of it, goes immediately out the door to people who are currently receiving benefits. Now there is a trust fund, but in 90 years of operation, that trust fund currently has enough money to fund two years of program operations.”
The trust fund only being able to last for two years is not a result of the fund being “looted,” Agresti explained, but rather it was put in place to “put surpluses in it” from money that Social Security collects in taxes that it doesn’t pay out immediately and pays interest on.
“The interest that’s been paid on that has been higher than the rate of inflation,” Agresti said. “So, the problem isn’t that the trust fund has been looted. The problem is that Social Security operates like a Ponzi scheme.”
DOGE’S PLANS TO OFFLOAD GOVERNMENT BUILDINGS SUPPORTED BY FORMER GSA OFFICIAL
Social Security card (Kurt “CyberGuy” Knutsson)
One of the top Social Security criticisms from Republicans, including President Trump, has been a concern that individuals who are dead or listed with an age well over 100 years old are on the rolls and receiving benefits.
Agresti told Fox News Digital that there are legitimate reasons to be concerned about that issue.
“What’s unclear to me at this moment is whether or not the people who are on the books are actually receiving checks,” Agresti said.
“Back during the Obama administration, there was a stimulus, and the Obama administration sent out stimulus checks via Social Security numbers to 80,000 people who were dead, and about 70,000 of them, the Social Security Administration knew they were dead. So I don’t know if they’ve remedied that situation since then, but clearly the system is not keeping up with the pace of current data, and that provides an opportunity for fraud.”
Elon Musk listens as President Donald Trump meets with India’s Prime Minister, Narendra Modi, in the Oval Office of the White House, on Thursday, Feb. 13. (AP/Alex Brandon)
Democrats have also made the case that Musk is attempting to strip away benefits that senior citizens have rightfully earned. Agresti told Fox News Digital that is not what is happening.
“There’s been a lot of misinformation about that as of late,” Agresti said. “You know, when DOGE came in and suggested that the Social Security Administration cut, I think it was about 10,000 workers, Democrats erupted that this is going to weaken Social Security. But the fact of the matter is that Social Security pays those workers who are for administrative overhead from the Social Security trust fund. So, by cutting out the money that they’re paying them, you actually strengthen the program financially.”
Agresti told Fox News Digital that the current administrative overhead for Social Security is $6.7 billion per year, which is enough to pay more than 300,000 retirees the average old age benefit.
Questions have emerged from critics in recent years as to whether Social Security, in its current form, is even capable of remaining solvent to pay benefits to Americans who have paid in over the past few decades.
Agresti told Fox News Digital that the program will “become insolvent” as soon as 2035 if changes are not made.
“To give you a feel of how disconnected Social Security is from a fully funded pension plan, if to keep the program solvent and put it on the same firm financial footing as a real pension plan, it would require an extra $272,000 in additional payroll taxes from every person paying payroll taxes right now,” Agresti told Fox News Digital.
“I’ll give you another way in which more numbers prove this point. If you retired in 1980, it took about three years of receiving Social Security benefits to get back the value of your payroll taxes plus interest. If you retired in 2000, it took 17 years. If you retired in 2020. it will take 22 years, assuming the program has enough money to pay those benefits, which it won’t without another increase in taxes on another generation of Americans.”
Politics
Crews Drape Tarp Over White House in Latest Trump Restoration
Construction workers unfurled a large printed tarp to cover scaffolding installed at the White House’s front entrance. Doug Burgum, the interior secretary, said President Trump had ordered the repairs after noticing damage to columns.
Politics
WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices
NEWYou can now listen to Fox News articles!
Energy Secretary Chris Wright is telling Americans not to be concerned about the possibility of another surge of sharp increases in gasoline prices as tensions with Iran have started to escalate once again.
Asked whether Americans should worry about higher prices at the pump and how the Trump administration is preparing to keep the economy stable if the conflict continues to worsen, Wright told Fox News Digital: “It has not been any good behavior from Iran that’s allowed oil to flow. It’s been the United States military.”
“That’s not changing,” he assured, speaking from the Great American State Fair on the National Mall this week.
US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ
(Mario Tama/Getty Images) (Mario Tama/Getty Images)
With Iran striking three commercial vessels transiting the Strait of Hormuz on Monday and Tuesday, Wright doubled down in urging citizens to not credit Iran for the U.S. military’s work to ensure oil shipments continue flowing through the strait.
“Look, the U.S. Military has been the key asset here,” he said. “They have assured the flow of oil and gas through the Strait of Hormuz throughout. Not at the beginning of this conflict, but through the last six weeks.”
Wright said the administration is closely monitoring global oil supplies as the tentative ceasefire with Iran seemingly came to come to a halt, with President Donald Trump telling Secretary-General Mark Rutte the call for peace with Iran is “over” at the NATO Summit in Turkey on Wednesday.
But, he pointed to the continued shipping through the Strait as evidence that markets should remain stable.
TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE
President Donald Trump speaks at the White House on Tuesday, April 22. (AP/Alex Brandon)
“We’re of course constantly watching the supply of oil, the supply of refined products and what’s going on there,” Wright said. “And I think still all positive trends.”
Beyond geopolitical concerns, Wright also praised the new chain of discounted gas stations across Pennsylvania and New Jersey, Freedom Fuel, which promises customers prices below the national average.
The Trump administration, though not involved with the network, has heavily endorsed the new chain and its 25 locations.
“We love it,” Wright said when asked about Freedom Fuel. “I mean, look, any mechanism we can to lower energy costs for Americans of all kinds, we’re all in on.”
“With Freedom Fuels, they’re just lowering it down to their wholesale price of gasoline,” Wright said. “So they’re not making any money selling gasoline, but they’ve got convenience stores. That’s how most gas stations make money.”
NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER
Gasoline costs are a known concern for many Americans, and amid surging prices there has been a considerable increase in those opting to purchase electric vehicles to save money long-term at the pump — with Tesla dominating the market for these types of models.
Wright argued one of the benefits to living in America is having the option to choose what type of vehicle you drive.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“We just want people to buy what they would prefer,” he told Fox News Digital when asked his thoughts on increasing calls for support of the electrification of cars. “Consumer choice — you wanna buy an electric car, you wanna buy a gas powered car, diesel powered car, buy a big truck. That’s the choice.”
“That’s why you live in America. You get the choice of all those.”
Politics
Black mold and $1 wages: Settlement forces immigrant detention centers to protect workers
In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.
The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.
A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.
“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.
“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.
Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.
The GEO Group did not respond to requests for comment.
Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.
Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.
The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”
Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.
But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.
Early last year, the state’s Occupational Safety and Health Appeals Board rejected the GEO Group’s argument and found that detainees should be considered “affected employees.”
The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.
Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.
“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.
Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”
But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.
Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.
Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.
“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.
Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.
New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.
An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”
“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.
The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.
Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.
“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”
-
Miami, FL3 minutes agoOregon Battling Miami, Mario Cristobal for Four-Star EDGE Recruit
-
Dallas, TX5 minutes agoFC Dallas Forward Logan Farrington Inks Contract Extension
-
Boston, MA13 minutes agoRed Sox face lengthy travel issues ahead of series vs. Mets
-
Denver, CO20 minutes agoWhat’s going on with the Nuggets? Unpacking an NBA offseason on hold
-
Seattle, WA23 minutes agoSeattle Kraken Sign Goaltender Victor Östman and Defenseman Ville Ottavainen to One-Year Deals | Seattle Kraken
-
San Diego, CA28 minutes agoAn executive shuffle at San Diego’s Sempra
-
Milwaukee, WI35 minutes ago
Survey finds less than half of Jews in Milwaukee identify as Zionists | The Jerusalem Post
-
Atlanta, GA38 minutes agoAtlanta Hawks Showing Interest In Denver’s Peyton Watson, But Is The Price Too High?