May 2nd, 2025
The most recent instance of governmental profligacy, enthusiastically highlighted by the cost-efficacy-focused Department of Governmental Efficiency under the aegis of billionaire Elon Musk, purportedly lies in the revelation of hundreds of millions of dollars in purportedly fraudulent unemployment entitlements.
A significant impediment arises: federal investigators had previously unearthed what appears to be identical fraudulent activity, years prior and of considerably more expansive dimensions.
In a recent communiqué disseminated via X, the digital agora presided over by Musk, the Department of Government Error (DOGE) unveiled preliminary findings from "an inaugural survey of unemployment insurance claims dating back to 2020," revealing that 24,500 centenarians and nonagenarians beyond the age of 115 had purportedly claimed a staggering $59 million in disbursements; furthermore, an astonishing 28,000 individuals aged between one and five years had allegedly accrued $254 million; and, perhaps most remarkably, 9,700 putative beneficiaries with nativities situated more than fifteen years hence had evidently garnered $69 million from state coffers.
The tweet precipitated an anticipated schism of partisan responses, oscillating between outright skepticism and unqualified approbation, not least from Musk himself, who characterized his team's findings as so utterly 'bonkers' that he subjected the report to multiple readings before its implications fully registered.
"Those statistics are demonstrably adverse," he averred.
Nonetheless, Chavez-DeRemer need only consult her own department's Office of the Inspector General to ascertain that such fraudulent activities had already been meticulously documented by the very class of federal employees DOGE has vociferously impugned.
"There is an attempt to propagate this narrative suggesting governmental inefficiency and ineptitude, highlighting their purported success in uncovering issues overlooked by official bodies," states Michele Evermore, who specialized in unemployment matters at the U.S. Department of Labor during the tenure of former President Joe Biden. "They are identifying instances of fraud that were already officially documented as such, and are presenting this as their own discovery."
The Social Security Act of 1935 codified unemployment benefits within the federal legal framework, yet delegated to the individual states the discretionary authority to institute mechanisms for the accrual of unemployment levies, the adjudication of claims, and the disbursement of subvention.
Despite the near-absolute autonomy states maintain over their unemployment frameworks, exceptional relief initiatives — particularly the markedly augmented provisions promulgated by the initial Trump administration concomitantly with the onset of the COVID pandemic — precipitate a more immediate federal engagement and inundate the system with a torrent of novel beneficiaries.
In periods of economic stability, state unemployment systems exhibit a spectrum of performance, ranging from exemplary to deficient and even abysmal, as posited by Stephen Wandner, an economist at the National Academy of Social Insurance and author of "Unemployment Insurance Reform: Fixing a Broken System." However, the profound economic disruption wrought by the COVID-19 pandemic and the attendant deluge of unprecedented claims, which overwhelmed state capacities, exposed the widespread abject failure of these systems, according to Wandner.
The COVID unemployment relief, signed into law by Trump on March 27, 2020, was from its inception a veritable crucible for fraudulent activities, prompting the Department of Labor, approximately two weeks later, to issue a memorandum to state officials cautioning that the augmented benefits had rendered unemployment programs particularly susceptible to malfeasance, specifically citing the proliferation of imposter claims leveraging purloined or fabricated identities.
The aforementioned memorandum posited a stratagem for jurisdictions endeavouring to safeguard individuals whose identities had been compromised and subsequently exploited for the fraudulent procurement of unemployment benefits; to meticulously document such fraudulent activity without implicating innocent parties, the memo recommended the establishment of a "pseudo claim".
Such spurious assertions precipitated the logging of unemployment claims for individuals ranging from toddlers to centenarians; while the Department of Labor's inspector general recorded approximately 4,895 claims originating from those purportedly over a century old during the period spanning March 2020 to April 2022, a subsequent departmental memorandum clarified that these filings arose from states deliberately altering dates of birth as a measure to safeguard the identities of those whose personal information had been compromised.
"Numerous assertions pinpointed ... did not pertain to disbursements made to centenarians, but constituted 'pseudo-records' correlating to previously unmasked fraudulent claims," posits the 2023 memorandum.
A spokesperson for the Department of Labor remained unresponsive to inquiries regarding Musk's assertions, whilst the DOGE furnished no particulars concerning the methodology employed in unearthing the alleged fraudulent activity, nor whether such discoveries merely replicated pre-existing findings.
Notwithstanding DOGE's putative consideration of a more extended temporal horizon than federal investigators had hitherto encompassed, it registered a mere $382 million in fraudulent unemployment assertions, representing an infinitesimal proportion of the sum already within the investigators' purview.
In 2022, the Department of Labor reported that estimated unemployment insurance benefit fraud during the COVID-19 pandemic surpassed 45 billion dollars, a figure subsequently dwarfed by a Government Accountability Office assessment positing a probable loss within the range of 100 to 135 billion dollars.
"This observation, one suspects, will not dislodge any preconceived notions," remarks Amy Traub, a cognoscente of unemployment dynamics affiliated with the National Employment Law Project. "Its dissemination has been comprehensive, and it has been subjected to rigorous examination across numerous congressional inquiries."
If DOGE's most recent assertions strike a chord of recognition, it is due to their resonance with earlier pronouncements concerning Social Security disbursements to the deceased and the implausibly aged, which subsequently proved to be mendacious.
This renders DOGE an imperfect messenger even in instances of demonstrable fraud, such as those involving unemployment claims.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute and a staunch fiscal conservative, so unequivocally champions the eradication of federal profligacy that she has authored some 600 articles on the subject; yet, while she posits unemployment insurance fraud is pervasive, she remains highly circumspect regarding any conclusions drawn by DOGE, an entity she deems both ineffectual and potentially operating outside the bounds of legality.
Reidl articulates, "My credulity wanes when DOGE asserts a vast cohort of the deceased are drawing unemployment benefits, given DOGE's documented predilection for factual inaccuracy in such pronouncements."
Traub remarked that the surge in pandemic-period unemployment fraud prompted states to institute enhanced security protocols, querying why Musk's cohort was heralding stale fraudulent activity as a novel occurrence.
"With business magnates and economists forecasting a nationwide recession, contemplation of unemployment is an understandable corollary," observes Traub. "This constitutes an affront to the public perception of a critically vital programme, and potentially a manoeuvre to erode public consensus for unemployment benefits at a juncture of paramount necessity."
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