Elon Musk's recent comments on "The Joe Rogan Experience" have stirred up a big discussion about inefficiencies in federal spending. Musk mentioned that "money is most poorly spent when you're spending someone else's money on people you don't know."
Musk believes such payments reveal systemic issues. He also criticized the Treasury's payment system, arguing that its lack of required codes makes it function like "blank checks," and he suggested that this flaw results in more than $2 trillion in waste each year—a figure might be overblown.
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Examining the Controversy Around Federal Spending
Controversy grew when Musk alleged on X that the Social Security Administration database lists millions dead people as alive, implying massive fraud. However, a report by Wired showed that although the system sometimes misclassifies due to its old COBOL programming, almost none of those cases lead to benefits being paid out.
In 2025, the Social Security Administration is projected to distribute around $1.6 trillion in benefits to nearly 69 million Americans for disability, retirement, and Supplemental Security Income programs..
Another point of contention was Musk's amplification of a post on X claiming the U.S. government spent $4.5 million to spray alcoholic rats with bobcat urine and transgender monkeys.
Vox has pointed out that debates over "waste, fraud and abuse" are nothing new, and while some projects might seem frivolous, they barely move the needle in the context of federal spending. Especially considering the main reasons for the growing federal deficit are tax cuts and the increasing costs of supporting retirees and their healthcare.
LinkedIn co-founder and longtime associate of Musk Reid Hoffman offered a more measured perspective in an interview on Bloomberg Television. He acknowledged that while government inefficiencies exist, they often serve a purpose.
Unlike private companies, government institutions operate under different constraints, prioritizing stability over rapid innovation. Hoffman emphasized that rather than dismantling bureaucratic structures outright, the focus should be on improving efficiency while ensuring the government succeeds in serving both industry and citizens.
Experts like Jessica Riedl and Alex Nowrasteh argue that the Department of Government Efficiency's focus on cutting DEI programs is more about sending a political message than actually reducing the deficit, according to the Associated Press.
The bulk of federal spending is locked into Social Security, Medicare, defense, and debt interest. Recent estimates even suggest DOGE might cancel around $67 billion in contracts annually—only a fraction of Musk's lofty target, Business Insider reported.
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