May 2nd, 2025
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The purported discovery by billionaire Elon Musk's ostensibly cost-cutting Department of Government Efficiency of hundreds of millions of dollars in specious unemployment claims represents the latest instance of government profligacy it has ostensibly identified.
A significant complication arises: Federal investigators had previously unearthed what is ostensibly the selfsame fraudulent scheme, a considerable time prior and of substantially more extensive proportions.
A recent post on X, the digital platform under Musk's proprietorship, conveyed that an initial investigation into unemployment insurance claims post-2020 had uncovered startling anomalies: some 24,500 individuals reportedly exceeding the age of 115 had claimed a staggering $59 million in benefits; a further 28,000 purportedly aged between one and five had amassed $254 million; and 9,700 claimants whose reported birthdates lie more than fifteen years hence had collectively garnered $69 million from public coffers.
The tweet elicited a predictable, partisan response of either cynicism or acclamation, including from Musk himself, who described his team's findings as "so preposterous" that he had to pore over them repeatedly before their import was fully assimilated.
"Those figures represent a deeply concerning anomaly," he articulated.
Nonetheless, Chavez-DeRemer has merely to consult her department's Office of the Inspector General to ascertain that instances of such malfeasance have already been catalogued by the very cadre of federal employees DOGE has opprobriously branded.
"They are attempting to propagate a discourse portraying governmental operations as inherently inefficient and obtuse, thereby claiming credit for identifying malfeasance that purportedly eluded official detection," posits Michele Evermore, formerly engaged with unemployment policy at the U.S. Department of Labor during the tenure of ex-President Joe Biden. "They are asserting discovery of fraudulent activity that was already officially designated as such, presenting it as a novel revelation of fraud."
The 1935 Social Security Act codified unemployment benefits within the federal legal framework, yet delegated to individual states the prerogative of establishing apparatuses for the collection of unemployment levies, the adjudication of claims, and the disbursement of subventions.
Notwithstanding states' near-absolute autonomy over their respective unemployment mechanisms, extraordinary relief initiatives—principally, the substantially augmented benefits implemented by the initial Trump administration concurrent with the nascent stages of the COVID pandemic—precipitated a surge of explicit federal intervention and an inundation of novel claimants into the system.
In quotidian circumstances, state unemployment systems operate with variegated efficacy, spanning from highly effective to profoundly inadequate, according to Stephen Wandner, an economist at the National Academy of Social Insurance and author of "Unemployment Insurance Reform: Fixing a Broken System." Wandner contends that the economic maelstrom unleashed by COVID-19, precipitating an unprecedented surge in claims that overwhelmed state capabilities, revealed a considerably larger proportion to be utterly dysfunctional.
On March 27, 2020, Trump enacted the COVID unemployment relief into law, which immediately proved a fertile ground for fraudulent activities; approximately two weeks thereafter, the Department of Labor issued a memorandum alerting state officials to the heightened susceptibility of unemployment programs to fraud, largely attributed to the expanded benefits, which facilitated the submission of substantial volumes of imposter claims leveraging pilfered or fabricated identities.
The aforesaid memorandum proffered states grappling with the predicament of identity theft perpetrated for illicit unemployment benefit claims a recourse: to establish a "pseudo claim" – a stratagem conceived to meticulously log the fraudulent activity whilst simultaneously safeguarding the untainted populace from inadvertent association.
The purported claims precipitated a concatenation of instances where individuals at opposite ends of the age spectrum, from nascent toddlers to venerable centenarians, were recorded as recipients of pecuniary disbursals. The Department of Labor's inspector general meticulously catalogued some 4,895 unemployment claims attributed to individuals exceeding a century in age during the period spanning March 2020 to April 2022; however, a subsequent departmental memorandum explicated that these submissions originated from states employing the expedient of altering dates of birth as a safeguarding measure for individuals whose identities had been compromised.
"Numerous of the alleged claims identified… did not, in point of fact, pertain to disbursements rendered unto individuals beyond the age of one hundred years; rather, they represented 'pseudo-records' of fraudulent claims that had been previously unearthed," the 2023 memorandum posits.
A spokeswoman for the Department of Labor remained unresponsive to inquiries regarding Musk's purported discoveries, while DOGE offered no specifics concerning the provenance of its alleged findings of fraud or whether these observations merely reiterated previously ascertained information.
While DOGE purportedly examined a more protracted temporal span than federal investigators had hitherto, it enumerated a mere $382 million in spurious unemployment assertions, a negligible portion of what investigators were already cognizant.
In 2022, the Department of Labor posited that alleged unemployment fraud during the COVID era amounted to in excess of $45 billion; subsequently, the Government Accountability Office averred that the true figure was considerably more substantial, probably situated between $100 billion and $135 billion.
"It is, I believe, a matter of common cognizance," avers Amy Traub, a preeminent authority on joblessness affiliated with the National Employment Law Project. "Its dissemination has been extensive, having been the subject of manifold congressional deliberations."
If the latest contentions put forth by DOGE strike one as redolent of past pronouncements, this resonance stems from their recapitulation of previous determinations concerning disbursements of Social Security funds to the deceased and those of implausible antiquity; such earlier assertions, it bears noting, proved specious.
This positions DOGE as an imperfect conduit even in instances of demonstrable malfeasance, such as those concerning unemployment claims.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute, embodies fiscal conservatism, so staunchly advocating for the extirpation of federal profligacy that she has authored six hundred articles on the subject; notwithstanding her conviction that unemployment insurance fraud is endemic, she harbors considerable reservations regarding any findings emanating from DOGE, an entity she contends has operated with demonstrable inefficacy and potential illegality.
"I find myself questioning the veracity of DOGE's assertions when they posit that deceased individuals of extraordinary antiquity are drawing unemployment benefits on a massive scale," Reidl states. "DOGE's historical performance in such matters inspires little confidence."
Traub posited that the surge in pandemic-era unemployment fraud prompted states to instantiate novel security protocols, subsequently querying why Musk's team was amplifying stale fraudulent activity as if it represented a contemporary phenomenon.
"In light of forebodings of a national recession emanating from business leaders and economists, it is only to be expected that one's thoughts should turn to the spectre of unemployment," postulates Traub. "This constitutes nothing less than an assault on the very image of a program of critical importance, and arguably an endeavour to erode public support for unemployment insurance at a juncture when its significance could scarcely be overstated."
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