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Elon Musk and DOGE Commission: Cutting Trillions from Social Security and Medicare

Emilia Wright | November 20, 2024

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Musk’s DOGE Commission Aims to Slash Trillions in Government Spending

In a significant shift in political dynamics, Elon Musk and Vivek Ramaswamy have taken on critical roles within the newly formed Department of Government Efficiency (DOGE), aiming to overhaul federal expenditure. Amid rising economic concerns and discontent among citizens, the duo advocates for a stark reduction in government spending—targeting essential programs such as Social Security and Medicare. This mission comes in the wake of Americans expressing dissatisfaction with their economic conditions, leading many to vote for Donald Trump during the recent election cycle.

The Promise of ‘Temporary Hardship’

In a recent town hall meeting on X (formerly Twitter), Musk suggested that Americans may need to endure “some temporary hardship” to pave the way for long-term prosperity. However, the details regarding what constitutes this hardship and how long it will last remain vague. Critics question the rationale behind enduring hardships for the sake of future prosperity, especially when many Americans are already facing financial difficulties.

Identifying Potential Cuts: A Focus on Social Security and Medicare

A week before the recent elections, Musk stated that as much as $2 trillion could be cut from the federal budget. This figure represents approximately 30% of the total $6.75 trillion spent in fiscal year 2024. The lion’s share of federal spending is concentrated in critical areas: Social Security ($1.46 trillion), interest on the national debt ($882 billion), Medicare ($874 billion), defense ($874 billion), and veterans benefits ($325 billion). Together, these programs account for about 65% of the federal budget.

Despite the overwhelming focus on these areas, Trump has publicly vowed not to touch them. However, political analysts suggest that he may face new pressures to make cuts now that Republicans control both houses of Congress and the presidency.

The Role of Musk and Ramaswamy in Future Spending Cuts

As efficiency czars, Musk and Ramaswamy are positioned within a political environment that no longer has the same checks and balances as before. Their status as unelected officials raises questions about their influence over significant legislative changes. While Trump may avoid direct association with cuts that could harm American citizens, Musk and Ramaswamy could serve as proxies in advancing these agendas.

The Affordable Care Act Under Fire

One possible target for spending cuts could be the Affordable Care Act (ACA), which has significantly reduced the number of uninsured Americans since its inception. Trump has long criticized the ACA as “horrendous” but has yet to present an alternative. If Musk and Ramaswamy leverage their positions, the potential rollback of ACA provisions could reverse the progress made over the last decade.

According to the Centers for Disease Control and Prevention, 19.8% of Americans were uninsured before the ACA was passed; this figure plummeted to just 8.0% by 2022. Although the ACA is not without its faults, it has created a safety net for millions, particularly for those with pre-existing conditions. Any cuts to this program could result in significant hardship for many American families.

The Future of Social Security: Privatization on the Table?

Concerns about the long-term viability of Social Security have been mounting, particularly with projections that the trust fund could deplete by 2033, leading to a 21% cut in benefits. Ramaswamy has previously floated the idea of privatizing Social Security, a notion that resonates with many in the Republican Party. If embraced by Musk, this could very well emerge as a primary legislative objective.

As the political landscape remains fluid and unconventional, ideas that were once considered radical may gain traction, especially with a Republican majority in place. This extraordinary period in politics challenges traditional norms, making it conceivable that significant reforms—such as the privatization of Social Security—could be advanced despite the complexities involved.

Conclusion: Preparing for the Unknown

With the DOGE commission’s objectives still shrouded in uncertainty, Americans are left to navigate an ambiguous landscape regarding their government’s fiscal policies. Elon Musk’s vision for cutting trillions from federal spending raises critical questions for the future of essential programs like Social Security and Medicare. While policies have not yet been concretely outlined, the intention to drive deep cuts to vital safety nets will likely reverberate throughout the economy, affecting countless lives in America.