May 2nd, 2025
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The latest governmental profligacy, ostensibly identified by billionaire Elon Musk's purported cost-rationalising Department of Government Efficiency, reportedly comprises hundreds of millions of dollars in ostensibly fraudulent unemployment claims.
A salient issue: federal investigators had previously uncovered what appears to be identical malfeasance, albeit years prior and on a considerably more extensive magnitude.
A recent post on X, the social media platform under Musk's proprietorship, revealed that "an initial survey of unemployment insurance claims since 2020" identified 24,500 claimants exceeding the age of 115, who collectively received $59 million in benefits; 28,000 individuals aged between 1 and 5 purportedly amassed $254 million; and 9,700 individuals whose birthdates projected more than 15 years into the future ostensibly garnered $69 million from governmental disbursements.
The tweet elicited a predictable, ideologically bifurcated response of either skepticism or acclamation, not excluding Musk himself, who characterized his team's findings as so utterly preposterous that he subjected them to multiple readings before their import was fully apprehended.
"The figures, as they stand, are unequivocally catastrophic," he remarked.
However, Chavez-DeRemer need only consult her own department's Office of the Inspector General to ascertain that such fraudulent activity had previously been brought to light by precisely the demographic of federal employees DOGE has disparaged.
"They are endeavouring to concoct a narrative that posits the government as inherently inefficient and obtuse, claiming they are uncovering transgressions that eluded official detection," states Michele Evermore, formerly engaged with unemployment matters at the U.S. Department of Labor during the tenure of former President Joe Biden. "Their purported findings of fraud merely reiterate instances already flagged as such, which they then disingenuously present as novel discoveries."
The Social Security Act of 1935 institutionalized unemployment benefits within the federal legal framework, yet devolved responsibility to the individual states for the establishment of mechanisms to levy unemployment contributions, adjudicate claims, and disburse emoluments.
Although states typically maintain considerable latitude concerning their unemployment compensation frameworks, ad hoc relief initiatives—particularly the substantially amplified benefits introduced by the inaugural Trump administration during the genesis of the COVID-19 pandemic—serve to introduce a more pronounced element of federal intervention and a surge of novel claimants into the established paradigms.
In quotidian circumstances, state unemployment apparatuses demonstrate a performance spectrum ranging from "laudable to mediocre and abysmal," posits Stephen Wandner, an economist at the National Academy of Social Insurance and author of "Unemployment Insurance Reform: Fixing a Broken System." However, with the COVID-19 pandemic's economic exigencies unleashing an unprecedented deluge of claims that overwhelmed state capacity, Wandner contends that a significantly greater proportion verged on the "utterly calamitous."
The COVID unemployment relief, enacted by Trump on March 27, 2020, swiftly became a nexus for widespread malfeasance. Within approximately two weeks, a subsequent Department of Labor missive to state officials underscored the vulnerability of augmented unemployment programs, cautioning that they had become a prime target for fraudulent activity, evidenced by a substantial surge in imposter claims leveraging purloined or contrived identities.
The aforementioned directive furnished a stratagem enabling jurisdictions, endeavouring to safeguard individuals whose identities had been purloined to illicitly procure unemployment benefits, to fabricate a "pseudo claim," thereby preserving an evidentiary trace of the malfeasance while precluding the imputation thereof to unblemished parties.
These specious assertions occasioned the documentation of benefit disbursements to individuals spanning the demographic spectrum from infancy to extreme longevity; the Department of Labor's inspector general recorded approximately 4,895 unemployment claims from centenarians during the period from March 2020 to April 2022, though a subsequent departmental memorandum clarified that these submissions originated from states altering birth dates to safeguard those whose identities had been misappropriated.
The 2023 memorandum contends that a substantial portion of the identified claims did not represent disbursements to centenarians, but rather constituted 'pseudo records' pertaining to fraudulent claims previously brought to light.
A spokesperson for the Department of Labor remained unresponsive to inquiries concerning Musk's assertions, and the Office of the Inspector General offered no particulars regarding the provenance of its alleged discovery of fraud or whether this ostensibly replicates prior findings.
Notwithstanding DOGE's ostensible purview over a more protracted temporal span than federal investigators had hitherto encompassed, it merely quantified $382 million in fraudulent unemployment applications, constituting a negligible subset of the sum total already within the investigative ambit.
In 2022, the Department of Labor estimated that suspected COVID-era unemployment fraud amounted to upwards of $45 billion, an figure subsequently dwarfed by the Government Accountability Office's projection, which placed the likely total within a staggering range of $100 billion to $135 billion.
"I daresay this observation is not entirely novel," posits Amy Traub, an authority on labour market dynamics affiliated with the National Employment Law Project. "Its prevalence in public discourse is undeniable, having been the subject of numerous legislative inquiries."
If DOGE's latest accusations resonate with a sense of déjà vu, it is because they recapitulate its earlier pronouncements concerning Social Security disbursements to deceased and superannuated individuals, contentions subsequently proven to be specious.
Consequently, DOGE proves an inadequate conduit for conveying information, even when confronted with instances of malfeasance, such as the fraudulent manipulation of unemployment benefits.
Jessica Reidl, an eminent senior fellow at the conservative think tank The Manhattan Institute, a staunch fiscal conservative and tireless advocate for the elimination of federal profligacy, has penned some 600 articles on the subject; while firmly of the conviction that unemployment insurance fraud is pandemic, she finds herself unable to countenance any findings emanating from DOGE, an entity she considers to have operated with demonstrable inefficacy and potential legal impropriety.
"I become skeptical," Reidl avers, "when DOGE contends that impossibly superannuated deceased individuals are amassing unemployment benefits on a grand scale, as DOGE's past pronouncements in that domain are scarcely unimpeachable."
Traub posited that the surge in pandemic-era unemployment fraud spurred states to implement novel security protocols, questioning why Musk's team was ostensibly trumpeting stale malfeasance as novel.
Confronted by the presages of a nationwide recession from business magnates and economists alike, it is only natural, as Traub opines, for contemplation to turn towards the spectre of unemployment. He characterizes the situation as an assault upon the very credibility of a program of critical import, potentially a stratagem to erode public approbation for unemployment insurance at a juncture when its significance is paramount.
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