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privatization
Sanders Warns Musk's Call for $700 Billion in Cuts Is a 'Prelude' to Social Security Privatization
"Why do you lie so much about Social Security? To get people to lose faith in the system, and then you can give it over to Wall Street," said Sen. Bernie Sanders.
Mar 11, 2025
U.S. Sen. Bernie Sanders warned late Monday that billionaire Elon Musk's new call for up to $700 billion in cuts to mandatory federal spending is an alarming step in the direction of Social Security privatization, a longstanding—and deeply unpopular—goal of right-wing politicians and corporate-funded think tanks.
Musk, who is spearheading a large-scale assault on federal agencies and workers, told Fox Business host Larry Kudlow on Monday that "waste and fraud" in "entitlement spending"—a category that includes Social Security, Medicare, and Medicaid—is "the big one to eliminate," estimating that up to $700 billion could be cut from such programs.
It's not clear where Musk, who has lied repeatedly about Social Security in recent weeks, got the $700 billion figure. As Rolling Stone's Andrew Perez noted, "There is no expert on the planet who thinks there is $700 billion worth of annual fraud in America's safety net programs."
"Musk at one point in the interview cited a Government Accountability Office report which estimated that the government may lose between $233 billion and $521 billion annually to fraud, but that report covered the whole of the federal government—not just those programs," Perez wrote.
A 2024 report from the Social Security Administration's inspector general found that of the $8.6 trillion in Social Security benefits paid out between 2015 and 2022, roughly $71.8 billion was dispensed improperly—0.84% of the total.
"I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that's in the back of their mind."
Musk also baselessly claimed that mandatory federal spending on programs such as Social Security, Medicare, and Medicaid is a "mechanism by which the Democrats attract and retain illegal immigrants, by essentially paying them to come here and then turning them into voters." (In reality, undocumented immigrants pay taxes that help finance Social Security and Medicare but cannot receive benefits from the programs.)
Sanders (I-Vt.) couldn't hide his disgust when he was asked during a CNN appearance to respond to Musk's remarks.
"Well, he has called Social Security a Ponzi scheme. They have already laid off 2,500 employees of the Social Security Administration," said Sanders. "If you ask me, I think this is a prelude not only to cutting benefits, but to privatizing Social Security itself. I think that's in the back of their mind."
"Why do you lie so much about Social Security? Why do you make it look like it's a broken, dysfunctional system?" Sanders asked. "The reason is to get people to lose faith in the system, and then you can give it over to Wall Street. That's my view."
Musk's latest attack on Social Security, a remarkably efficient program that has never missed a payment, came as his Department of Government Efficiency, or DOGE, has effectively taken over the Social Security Administration (SSA) and is pushing for massive cuts to the agency's staff and budget based on egregious lies.
"Appearing to misread a chart, for example, Musk said on social media in February that DOGE had identified payments to 'tens of millions' of deceased Americans—an incorrect assertion repeated by White House Press Secretary Karoline Leavitt," The Washington Postreported last week.
Everett Kelley, president of the American Federation of Government Employees—a union engaged in a legal fight against the Trump administration's purge of the federal workforce—wrote Monday that Musk's latest comments show that he "doesn't just want to cut the SSA workforce."
"He wants to eliminate Social Security entirely," Kelley added.
Joel Payne, chief communications officer at MoveOn Civic Action, said in a statement Tuesday that "Elon Musk and the Trump-led Republican Party are promising exactly what they have been trying to do for years: gut Social Security."
"Republicans want to illegally fire tens of thousands of workers responsible for making sure American seniors get their Social Security and then let Musk take his chainsaw to our benefits," said Payne. "We won't let them do it. Elon Musk, Donald Trump, and Republicans need to keep their hands off our Social Security."
The progressive advocacy group Social Security Works sounded a similarly defiant note.
"Elon Musk is a conman and a criminal, born with an emerald mine instead of a moral compass," the group wrote on social media. "Of course he wants to destroy Social Security, because he can't get his tiny greedy fingers on it any other way. HELL NO!"
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'We Can't Allow This to Happen': Musk Touts Postal Service, Amtrak Privatization
"This is their end goal: the privatization of as much of the U.S. government as possible, enriching the rich and leaving everyone else worse off," warned one progressive.
Mar 06, 2025
Elon Musk sparked calls Thursday to fight what one union called an "illegal power grab" after the senior adviser to President Donald Trump and de facto head of the Department of Government Efficiency said that the United States Postal Service and Amtrak, the national passenger rail service, should be privatized.
"I think logically we should privatize anything that can reasonably be privatized," Musk—who is advising Trump on how to eviscerate federal agencies—said while appearing remotely at the Morgan Stanley Technology, Media, and Telecom Conference. "I think we should privatize the post office and Amtrak for example... We should privatize everything we possibly can."
"Basically, something's got to have some chance of going bankrupt, or there's not a good feedback loop for improvement," he opined.
The U.S. Postal Service (USPS) employs more than 600,000 people. Amtrak has more than 21,000 workers.
"Big banks are already drawing up plans for a fire sale of the most profitable parts of our postal network."
Musk called the state of Amtrak "kind of embarrassing" and contrasted the U.S. rail system with the networks of countries including China, where the central government has financed the construction of nearly 30,000 miles (48,200 km) of high-speed lines. The United States has less than 300 miles of high-speed rail.
"Amtrak is a sad situation," Musk asserted. "It's like, if you're coming from another country, please don't use our national rail. It can leave you with a very bad impression of America."
Responding to Musk's remarks, Progressive Mass political director Jonathan Cohn said on social media, "This is their end goal: the privatization of as much of the U.S. government as possible, enriching the rich and leaving everyone else worse off."
Like Musk, Trump has also expressed support for privatizing the USPS, a move recommended by his Office of Management and Budget during his first term. The president also sought to slash Amtrak's funding during his first administration.
Last month, reporting that Trump is seeking to place the USPS under the control of the Commerce Department—which is led by billionaire cryptocurrency banker Howard Lutnick—sparked outrage and allegations of illegality.
"White House sources recently briefed the media that they were planning an illegal power grab of our public Postal Service," the American Postal Workers Union (APWU) said in an email this week responding to ongoing attacks on the USPS. "Such a power grab could allow them to put into action our greatest fear. Stripping our services and selling off our USPS."
"Big banks are already drawing up plans for a fire sale of the most profitable parts of our postal network, raising shipping costs for the public, and leaving taxpayers on the hook to fund the rest," APWU added. "We can't allow this to happen!"
Last month, longtime Postmaster General Louis DeJoy signaled he would step down by asking the United States Postal Service Board of Governors to begin selecting his successor. DeJoy's tenure has been marred by allegations of criminal election obstruction, conflicts of interest, and other corruption. His Delivering for America, a 10-year austerity plan, has been condemned by some critics as a roadmap to privatization.
It's not just the USPS and Amtrak. Key members of the Trump administration and their oligarch allies are pursuing policies and actions opponents argue are ultimately aimed at privatizing a sweeping range of federal agencies and services, from
public education to veterans' healthcare to mortgage lending, Social Security, Medicare, and more.
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Social Security Advantage: Trump and Musk’s Evil Plan to Privatize Our Safety Net
The goal is to make interacting with Social Security such a difficult and painful process that retired Americans will get angry with the government and begin to listen to Republicans and Wall Street bankers who tell us they should run the system.
Mar 06, 2025
Tuesday night, U.S. President Donald Trump stood before the nation and, with the full backing of billionaires like Elon Musk, laid the groundwork for the biggest heist in American history—the rapid, systematic destruction of Social Security, disguised as “reform.”
We saw the formal announcement of it during Trump’s State of the Union address, and the DOGE announcement earlier in the week that 7,000 employees at Social Security are to be immediately laid off—with as many as half of all Social Security employees (an additional 30,000 people)—soon to be on the chopping block.
Republicans and their morbidly rich donors have hated Social Security ever since it was first created in 1935. They’ve called it everything from communism to socialism to a Ponzi scheme.
It took Bush almost three years to convince Congress to start the process of privatizing and ultimately destroying Medicare. Having learned from that process, odds are Trump will try to privatize Social Security within the year.
In fact, it has been the most successful anti-poverty program in the history of America, one now emulated by virtually every democracy in the world.
But the right-wing billionaires hate it for several reasons.
The first and most important reason is that it demonstrates that government can actually work for people and society: That then provides credibility for other government programs that billionaires hate even more, like regulating their pollution, breaking up their monopolies, making their social media platforms less toxic, and preventing them from ripping off average American consumers.
Thus, to get political support for gutting regulatory agencies that keep billionaires and their companies from robbing, deceiving, and poisoning us, they must first convince Americans that government is stupid, clumsy, and essentially evil.
Former President Ronald Reagan began that process when he claimed that government was not the solution to our problems but was, in fact, the cause of our problems. It was a lie then and is a lie now, but the billionaire-owned media loved it and it’s been repeated hundreds of millions of times.
Billionaires also know that for Social Security to survive and prosper, morbidly rich people will eventually have to pay the same percentage of their income into it as bus drivers, carpenters, and people who work at McDonald’s.
Right now, people earning over $176,100 pay absolutely nothing into Social Security once that amount has been covered. To make Social Security solvent for the next 75 years, and even give a small raise to everybody on it, the simple fix is for the rich to just start paying Social Security income on all of their income, rather than only the first $176,100.
The entire solvency and health of Social Security could be cured permanently, in other words, if we simply did away with the “billionaire loophole” in the Social Security tax.
But the idea of having to pay a tax on all their income so that middle class and low income people can retire comfortably fills America’s billionaires with dread and disgust. So much so that not one single Republican publicly supports the idea.
How dare Americans have the temerity, they argue, to demand morbidly rich people help support the existence of an American middle class or help keep orphans and severely disabled people from being thrown out on the streets!
Which is why Elon Musk and his teenage hackers are attacking the Social Security Administration and its employees with such gusto.
By firing thousands of employees, their evil plan is to make interacting with Social Security such a difficult and painful process—involving months to make an appointment and hours or even days just to get someone on the telephone—that retired Americans will get angry with the government and begin to listen to Republicans and Wall Street bankers who tell us they should run the system.
(This won’t be limited to Social Security, by the way; as you’re reading these words Trump and Musk are planning to slash 80,000 employees from the Veterans Administration, with a scheme to dump those who served in our military into our private, for-profit hospital and health insurance systems.)
The next step will be to roll out the Social Security version of Medicare Advantage, the privatized version of Medicare that former President George W. Bush created in 2003. That scam makes hundreds of billions of dollars in profits for giant insurance companies, who then kick some of that profit back to Republican politicians as campaign donations and luxury trips to international resorts.
Advantage programs are notorious for screwing people when they get sick, and for ripping off our government to the tune of billions every year. But every effort at reforming Medicare or stopping the Medicare Advantage providers from denying us care and stealing from our government has been successfully blocked by bought-off Republicans in Congress.
Once Republicans have damaged the staffing of the Social Security Administration so badly that people are screaming about the difficult time they’re having signing up, solving problems or errors, or even getting their checks, right-wing media will begin to promote—with help from GOP politicians and the billionaire Murdoch family’s Fox “News”—people opting out of Social Security and going with a private option that resembles private 401(k)s.
Rumor has it they’ll call it “Social Security Advantage” and, like Medicare Advantage, which is administered for massive profits by the insurance giants, it will be run by giant, trillion-dollar banks out of New York.
While big insurance companies have probably made something close to a trillion dollars in profits out of our tax dollars from Medicare Advantage since George W. Bush rolled out the program, Social Security Advantage could make that profit level look like chump change for the big banks.
And, as an added bonus, billionaires and right-wing media will get to point out how hard it is to deal with the now-crippled Social Security administration and argue that it’s time to relieve them, too, of the regulatory burdens of “big government”: Gut or even kill off the regulatory agencies and make their yachts and private jets even more tax deductible than they already are.
This is why Donald Trump repeated Elon Musk’s lies about 200 year-old people getting Social Security checks and the system being riddled with fraud and waste. In fact, Social Security is one of the most secure and fraud-free programs in American history.
But Tuesday night was just the opening salvo. It took Bush almost three years to convince Congress to start the process of privatizing and ultimately destroying Medicare.
Having learned from that process, odds are Trump will try to privatize Social Security within the year.
And he may well get away with it, unless we can wake up enough people to this coming scam and put enough political pressure—particularly on Republicans—to prevent it from happening.
Tag, you’re it.
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