May 2nd, 2025
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The most recent instance of governmental profligacy, heralded by the cost-rationalisation initiatives of billionaire Elon Musk's Department of Governmental Efficacy, concerns the purported detection of fraudulent unemployment claims aggregating to a sum approaching nine figures.
A salient impediment: Federal investigators previously unearthed what appears to be identical chicanery, evinced years prior and on a substantially grander magnitude.
Last week, on the social media platform X, owned by Musk, DOGE disseminated a post asserting that "an initial survey of unemployment insurance claims since 2020" had uncovered instances of 24,500 individuals purportedly aged over 115 claiming benefits totalling $59 million, 28,000 individuals allegedly between the ages of one and five having collected $254 million, and 9,700 individuals with birthdates exceeding fifteen years hence having garnered $69 million from governmental sources.
The pronouncement elicited a dichotomous response, strictly cleaved along partisan lines, ranging from incredulity to approbation, even encompassing Musk's own reaction, who deemed his team's findings so utterly outlandish that he was compelled to peruse them repeatedly before their import fully permeated his comprehension.
"Those figures," he stated, "are unequivocally deleterious."
However, Chavez-DeRemer need not consult beyond her department's Office of the Inspector General to ascertain that instances of such fraudulent activity had already been documented and brought to light by the very cohort of federal employees whom DOGE has disparaged.
"A concerted effort is underway to perpetuate a narrative portraying government as fundamentally inefficient and obtuse, claiming they are uncovering malfeasance that ostensibly eluded official detection," remarks Michele Evermore, whose tenure at the U.S. Department of Labor encompassed addressing unemployment-related complexities under the auspices of the Biden administration. "In essence, they are proclaiming the discovery of fraudulent activities that were already unequivocally designated as such."
The Social Security Act of 1935 codified the provision of unemployment benefits at the federal level, yet devolved upon individual states the prerogative to establish the requisite mechanisms for the collection of unemployment contributions, the adjudication of applications, and the disbursement of emoluments.
Notwithstanding the states' near-plenary authority over their respective unemployment apparatuses, specific exigency initiatives—preeminently the substantially augmented benefits promulgated by the initial Trump administration contemporaneous with the advent of the COVID pandemic—introduce a more immediate federal superintendence and a deluge of novel beneficiaries into the framework.
Under ordinary circumstances, state-administered unemployment benefit schemes exhibit a spectrum of performance, ranging from eminently effective to utterly dysfunctional, posits Stephen Wandner, an economist affiliated with the National Academy of Social Insurance and author of the seminal work, "Unemployment Insurance Reform: Fixing a Broken System." Wandner further contends that, given the unprecedented economic dislocation wrought by the COVID-19 pandemic and the ensuing deluge of claims that overwhelmed state capacity, a considerably larger proportion of these systems verged on abject failure.
The COVID-19 unemployment relief, enacted into law by Trump on March 27, 2020, swiftly emerged as an egregious conduit for illicit activities; indeed, merely a fortnight subsequent to its legislative promulgation, the Department of Labor issued a prescient advisory to state functionaries, cautioning that the augmentation of benefits had rendered unemployment initiatives susceptible to fraudulent exploitation, manifested in a proliferation of imposter claims proffered through the misappropriation or fabrication of personal identifiers.
That same memorandum delineated an option for states striving to shield an individual whose identity had been purloined to fraudulently procure unemployment emoluments. To safeguard a documentation of the perfidy whilst obviating the entanglement of blameless parties therein, states were counseled to instate a "pseudo claim," as the memorandum posited.
Such seemingly spurious assertions precipitated the recording of unemployment disbursements to individuals spanning the demographic spectrum from infancy to extreme senescence. While the Department of Labor's inspector general initially enumerated approximately 4,895 unemployment claims purportedly filed by individuals exceeding a century in age between March 2020 and April 2022, subsequent departmental correspondence elucidated that these submissions originated from state-level modifications of birth dates implemented as a measure to safeguard the identities of individuals whose personal information had been compromised.
"Numerous assertions delineated herein were not remunerations disbursed to individuals surpassing the centenarian threshold, but rather constituted 'pseudo records' of purportedly fraudulent claims previously brought to light," the 2023 memorandum posits.
A spokesperson for the Department of Labor remained unresponsive to inquiries concerning Musk's purported discoveries, whilst the Department of Justice's Office of Inspector General furnished no particulars regarding the methodology employed to identify the alleged malfeasance, nor did it clarify whether its findings merely replicated pre-existing determinations.
Notwithstanding DOGE's ostensible consideration of an extended temporal scope vis-à-vis federal investigators' prior examinations, it merely computed a total of $382 million in fraudulent unemployment demands, a negligible proportion of the sum federal investigators were already apprised of.
In 2022, the Department of Labor provisionally estimated the aggregate of suspected unemployment insurance fraud perpetrated during the COVID-19 pandemic to exceed $45 billion; however, subsequent analysis by the Government Accountability Office posited a far more egregious figure, ranging conjecturally between $100 billion and $135 billion.
"I daresay this is hardly a revelation to anyone," posits Amy Traub, a preeminent authority on unemployment at the National Employment Law Project. "It has been exhaustively documented. A multiplicity of congressional inquiries have been instigated."
Should DOGE's latest imputations possess a tincture of déjà vu, it is attributable to their mirroring of its antecedent determinations concerning Social Security disbursements to the deceased and the incredibly superannuated. Those were spurious assertions.
Consequently, DOGE serves as an inadequate conduit for conveying information, even in instances of demonstrable perfidy, exemplified by the fraudulent unemployment claims.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute and a staunch advocate for fiscal conservatism, has penned a prodigious six hundred articles championing the extirpation of federal waste. While convinced of the pervasive nature of unemployment insurance fraud, she finds herself disinclined to countenance any conclusions proffered by DOGE, asserting its demonstrable record of feckless and potentially illicit conduct.
"The assertion from DOGE that an exorbitant number of deceased individuals, predating all reasonable expectation of continued vitality, are currently drawing unemployment benefits, elicits a profound skepticism on my part," states Reidl, adding, "DOGE's historical accuracy concerning such matters is demonstrably tenuous."
Traub posited that the surge in pandemic-era unemployment fraud impelled states to instigate novel security protocols, questioning why Musk's cohort was touting dated fraudulent activities as if they constituted recent revelations.
"Given the prevalent admonitions from magnates and economic cognoscenti regarding an impending national recession, it is entirely comprehensible that one's thoughts would gravitate towards unemployment," posits Traub. "This constitutes a clear assault on the probity of a program of paramount significance, and is perhaps a calculated stratagem to erode public confidence in unemployment insurance at a juncture when its salience is unparalleled."
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