May 2nd, 2025
The Department of Government Efficiency, a cost-reduction initiative spearheaded by billionaire Elon Musk, has allegedly unearthed hundreds of millions of dollars in potentially specious unemployment claims, which Musk has vociferously cited as exemplary instances of governmental profligacy.
A complicating factor: Federal investigators had, years prior and on a vastly larger scale, seemingly unearthed the identical malfeasance.
Writing in a recent missive on X, the social media platform under Musk's ownership, DOGE disclosed that a preliminary analysis of unemployment insurance claims spanning the period since 2020 had unearthed evidence of 24,500 individuals purportedly exceeding 115 years of age having claimed benefits totalling $59 million; astonishingly, 28,000 claimants ostensibly aged between one and five years had amassed $254 million; and furthermore, 9,700 entities with documented birthdates extending beyond the next fifteen years had ostensibly garnered a cumulative $69 million from state coffers.
The tweet precipitated a predictable partisan schism, eliciting either scepticism or acclamation, a polarisation underscored by Musk himself, who averred the team's discoveries were of such preposterous magnitude that he subjected them to multiple re-readings before their import could be assimilated.
"Those figures are markedly detrimental," he averred.
Nevertheless, Chávez-DeRemer need not extend her investigative purview beyond her department's Office of the Inspector General to ascertain that such fraudulent activities had, in fact, already been brought to light by the very cohort of federal employees whom DOGE has pejoratively characterised.
"The prevailing discourse, positing governmental inefficiency and intellectual deficiency, is being strategically manipulated; ostensibly, these actors are identifying irregularities previously overlooked by state apparatuses," posits Michele Evermore, formerly engaged with unemployment policy at the U.S. Department of Labor during the tenure of President Joe Biden's administration. "They are uncovering fraudulent activities that were already designated as such and subsequently claiming their independent discovery of this malfeasance."
The Social Security Act of 1935 codified unemployment benefits within the federal statutory framework, yet devolved upon the individual states the prerogative to establish the requisite mechanisms for the collection of unemployment contributions, the adjudication of claims, and the dispensation of emoluments.
Notwithstanding states' near-plenary authority over their unemployment compensation apparatuses, sui generis relief initiatives—particularly the extensive expansion of benefits promulgated by the initial Trump administration at the pandemic's incipience—engender a heightened degree of direct federal intervention and an influx of novel claimants into the system.
Ordinarily, state unemployment systems function along a spectrum from "highly effectively" to "abysmally," according to Stephen Wandner, an economist at the National Academy of Social Insurance and author of "Unemployment Insurance Reform: Fixing a Broken System." However, with the economic devastation wrought by COVID precipitating a deluge of novel claims that overwhelmed state capacities, Wandner contends that a significantly greater number proved to be "rather catastrophic."
On March 27, 2020, Trump's legislative imprimatur sanctioned the enactment of COVID unemployment relief, which from its inception morphed into a veritable crucible of fraudulent activity. Within approximately two weeks, a Department of Labor memorandum disseminated to state officials cautioned that the amplified benefits had rendered unemployment programs a prime target for fraudulent machinations, evidenced by a substantial proliferation of imposter claims leveraging purloined or fabricated identities.
The aforesaid memorandum presented an avenue for states endeavouring to safeguard individuals whose identities had been purloined for the purpose of illicitly accruing unemployment benefits, proposing the establishment of a "pseudo claim" to meticulously document the fraudulent activity whilst simultaneously obviating any imputation of complicity upon blameless parties.
The genesis of these ostensible entitlements precipitated documented instances of disbursements reaching individuals at the extreme ends of the age spectrum, from the nascent stages of infancy to the centenarian milestone.
Whilst the Department of Labor's inspector general enumerated approximately 4,895 unemployment claims lodged by individuals exceeding a century in age between March 2020 and April 2022, a subsequent departmental memorandum elucidated that these submissions originated from states altering birthdates as a prophylactic measure to safeguard individuals whose identities had been misappropriated.
"A multitude of the purported entitlements pinpointed ... did not pertain to disbursements directed towards centenarians, but rather constituted 'spurious entries' representing fraudulent assertions unearthed prior," the 2023 memorandum explicates.
A spokesperson for the Department of Labor remained unresponsive to inquiries regarding Musk's ostensible discoveries, while the Office of the Inspector General for the Department of Labor furnished no particulars concerning the methodologies by which it purportedly unearthed the alleged fraud, nor whether these findings constituted a replication of prior investigative outcomes.
While DOGE purportedly examined a more extended temporal scope than federal investigators heretofore, it registered merely $382 million in specious unemployment claims, a negligible proportion of the figures investigators had already ascertained.
In 2022, the Department of Labor estimated that alleged instances of unemployment fraud during the COVID-19 pandemic amounted to in excess of $45 billion; subsequently, the Government Accountability Office posited that the actual figure was substantially higher, potentially ranging from $100 billion to $135 billion.
"I apprehend that this is hardly revelatory information to any party," opines Amy Traub, a savant on the subject of unemployment affiliated with the National Employment Law Project. "It has been extensively chronicled. There have been myriad congressional inquisitions into the matter."
If DOGE's most recent accusations bear a semblance of déjà vu, it is because they mirror its earlier pronouncements concerning Social Security disbursements to the deceased and the ostensibly superannuated – allegations subsequently determined to be specious.
This renders DOGE an unreliable conduit for information, even in instances of demonstrable malfeasance, such as with specious unemployment assertions.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute, embodies a fiscal conservatism so zealous in its pursuit of eradicating federal profligacy that she has penned no fewer than 600 articles on the subject; yet, despite her conviction regarding the ubiquity of unemployment insurance fraud, she evinces considerable skepticism towards any findings emanating from DOGE, an entity she alleges has operated with demonstrable ineffectiveness and potential illegality.
"When DOGE posits that deceased individuals of an implausibly advanced age are amassing unemployment benefits in colossal quantities, my skepticism is piqued," Reidl asserts. "DOGE's historical performance concerning such pronouncements lacks credibility."
Traub posited that the surge in pandemic-era unemployment fraud catalyzed states to instate novel security protocols, querying why Musk's contingent was heralding prior fraudulent activity as if it constituted a nascent phenomenon.
"Amidst pervasive economic forecasts portending national recession from business leaders and economists alike, considerations of unemployment are naturally precipitated," posits Traub. "This constitutes an egregious assault upon the reputational integrity of a program of paramount criticality and, perhaps, a calculated stratagem to erode public approbation for unemployment insurance at a juncture when its salience is unprecedented."
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