May 2nd, 2025
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The most recent instance of governmental profligacy, ostensibly unearthed by the cost-containment initiatives spearheaded by billionaire Elon Musk's Department of Governmental Efficacy, involves alleged fraudulent unemployment claims amounting to hundreds of millions of dollars.
One pertinent issue surfaces: federal investigators had previously uncovered what appears to be the identical fraudulent scheme, dating back several years and executed on a significantly more expansive scale.
A recent missive disseminated on X, the microblogging platform under Musk's aegis, unveiled the findings of "an initial survey of unemployment insurance claims since 2020," which purportedly identified 24,500 individuals exceeding 115 years of age who had ostensibly claimed $59 million in disbursements; a further 28,000 persons aged between one and five years had allegedly accrued $254 million; and an additional 9,700 individuals whose nativities were projected more than fifteen years hence had purportedly garnered $69 million in governmental subventions.
The tweet precipitated a predictable partisan response, ranging from abject skepticism to vociferous approbation, not least from Musk himself, who characterized his team's findings as so utterly baffling that he was compelled to re-peruse them multiple times before their import was fully apprehended.
"The statistical data presents a profoundly alarming picture," he articulated.
However, Chavez-DeRemer need look no further than her own department's Office of the Inspector General to ascertain that precisely such malfeasance had been heretofore documented by the very cadre of federal employees DOGE has so vehemently castigated.
"They are endeavouring to propagate this narrative that posits governmental apparatus as inherently inefficient and obtuse, seizing upon instances where the governmental infrastructure ostensibly failed to detect anomalies," asserts Michele Evermore, formerly engaged with unemployment affairs at the U.S. Department of Labor during the tenure of ex-President Joe Biden. "They are unearthing instances of malfeasance that were previously flagged as such, subsequently claiming their discovery of this already identified fraudulent activity."
The Social Security Act of 1935 codified unemployment benefits within the federal statutory framework; however, it devolved upon the individual states the prerogative to establish the requisite mechanisms for the collection of unemployment levies, the processing of applications, and the disbursement of emoluments.
While states retain near-plenary authority over their unemployment insurance regimes, ad hoc relief initiatives—preeminently the substantially augmented benefits legislated by the initial Trump administration coincident with the pandemic's onset—precipitate a surge of explicit federal intervention and inundate the system with a plethora of novel claimants.
In quotidian circumstances, state-administered unemployment apparatuses operate across a spectrum of efficacy, ranging from "highly effective" to "barely adequate" and even "manifestly dysfunctional," according to Stephen Wandner, a distinguished economist affiliated with the National Academy of Social Insurance and the author of the seminal work, "Unemployment Insurance Reform: Fixing a Broken System." Given the profound economic dislocation wrought by the COVID-19 pandemic, precipitating an unprecedented surge in benefit applications that overwhelmed state capacities, Wandner posits that the performance of numerous systems plummeted further into a state of considerable ineptitude.
On March 27, 2020, Trump appended his signature to the COVID unemployment relief legislation, which promptly metastasized into a veritable crucible of fraudulent activity; a Department of Labor memorandum, dispatched to state officials a fortnight thereafter, cautioned that the amplified benefits had rendered unemployment schemes acutely susceptible to malfeasance, citing a substantial influx of imposter claims lodged with purloined or fabricated identities.
That same memorandum broached a stratagem for states endeavouring to safeguard individuals whose identities had been pilfered for the purpose of illicitly garnering unemployment benefits; to meticulously document the perpetration of the fraud whilst simultaneously shielding blameless parties from imputation, states were enjoined to fabricate a "pseudo claim".
The proliferation of these "pseudo claims" precipitated the incongruous recording of benefit disbursements to individuals ranging from toddlers to centenarians, with the Department of Labor's inspector general documenting approximately 4,895 unemployment claims ostensibly submitted by individuals exceeding a century in age between March 2020 and April 2022; however, a subsequent departmental memorandum elucidated that these filings originated from states altering dates of birth as a measure to safeguard individuals whose identities had been misappropriated.
"Numerous assertions scrutinised ... pertained not to disbursements rendered unto centenarians, but rather constituted 'pseudo-records' of fraudulent demands heretofore recognised," posits the 2023 memorandum.
A spokesperson for the Department of Labor remained unresponsive to inquiries concerning Musk's purported discoveries, whilst the Department of Government Operations and Enforcement failed to furnish specifics regarding the methodology employed in unearthing the alleged fraud, or indeed, whether its findings merely replicated those already in the public domain.
Notwithstanding DOGE's ostensible examination of a more extended timeframe compared to prior federal investigative endeavours, it accounted for a mere $382 million in fraudulent unemployment claims, a paltry sum constituting a minuscule proportion of the quantum already known to the investigators.
In 2022, the Department of Labor posited that alleged unemployment fraud during the COVID-19 pandemic amounted to in excess of $45 billion; however, the Government Accountability Office subsequently contended that the actual figure was considerably more substantial, likely within the range of $100 billion to $135 billion.
"One might contend it is scarcely a revelation," avers Amy Traub, a cognoscente in the domain of unemployment at the National Employment Law Project, "as its widespread dissemination has been a matter of extensive reportage, underscored by a multiplicity of congressional convenings."
Should the latest allegations concerning DOGE seem redolent, it is owing to their reiteration of previous pronouncements regarding Social Security disbursements to the deceased and those of extraordinary longevity, which were subsequently invalidated as specious.
Consequently, DOGE emerges as an inadequate emissary, even in instances where fraudulent activity has transpired, such as in the realm of unemployment benefit claims.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute, a fiscal conservative ardently committed to extirpating federal profligacy, has authored six hundred disquisitions on the subject; whilst assenting to the ubiquity of unemployment insurance fraud, she evinces profound scepticism towards any conclusions proffered by DOGE, deeming the entity to have operated with egregious inefficacy, potentially even transcending legal boundaries.
"I confess to a certain incredulity," avers Reidl, "when DOGE promulgates claims of anachronistic individuals purportedly drawing substantial unemployment benefits; their historical veracity in such matters being, shall we say, less than impeccable."
Traub contended that the surge in pandemic-era unemployment malfeasance spurred states to instantiate novel security protocols, questioning the rationale behind Musk's team touting stale fraudulent activities as if they were emergent.
Traub posits, "Amidst dire pronouncements from corporate magnates and economic soothsayers forecasting a nation-wide downturn, contemplation of unemployment becomes an inevitability; this constitutes not merely a calumny upon a pivotal scheme's standing but, plausibly, a calculated endeavour to attenuate societal approbation for unemployment benefit, precisely at a juncture of paramount exigency."
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