Elon Musk Calls Social Security ‘The Biggest Ponzi Scheme Of All Time’

There has been a firestorm over a recent appearance of Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, on The Joe Rogan Experience podcast in which he called Social Security “the biggest Ponzi scheme of all time.

Critics of the program, as well as policymakers, economists, and advocates for seniors, have sharply criticized Musk’s comments, which were made during a wide-ranging discussion about economics and technology.

BREAKING: Elon Musk called Social Security "the biggest Ponzi scheme of all time" in an interview with Joe Rogan. pic.twitter.com/gCrDPLM15u

— More Perfect Union (@MorePerfectUS) March 1, 2025

Musk called Social Security ‘fundamentally a Ponzi scheme.’ He said, “There must be a system where current workers pay for current retirees, and they only work if the population keeps growing. With declining birth rates, however, it is mathematically unsustainable.

Based on the Social Security Administration’s 2024 Trustees Report, if Congress does not act, then the program’s trust funds will empty by 2035, and benefits could be cut by 20 percent.

Reactions from Experts and Politicians  

Progressive lawmakers and advocates for seniors have swiftly backed Musk’s comments. Nancy J. Altman, President of Social Security Works, commented that Musk’s analogy is a ‘dangerously misleading’ condemnation of the. The statement from Altman is: "Social Security is not a Ponzi scheme," a term that describes financial schemes in which initial investors are promptly repaid using funds obtained from subsequent investors. “It is a social insurance program, which has lifted millions out of poverty, seniors, in particular.“

"Instead of attacking a system that helps the working Americans, Elon Musk should put his money where his mouth is and pay his fair share of taxes.” Echoing that saying was Senator Elizabeth Warren, who tweeted, “Social Security is a promise to the American people, not a Ponzi scheme.

But some fiscal conservatives have sided with Musk’s critique. Economist Larry Kotlikoff, a longtime Social Security critic, called Musk’s comments “spot on” and later estimated that Social Security would swallow America’s $100 trillion economy within the next 50 years.

Social Security’s Future in the Market Debate

Musk’s comments have sparked renewed debate on the future of Social Security, which provides benefits to more than 65 million Americans. The program is a pay-as-you-go structure, which is not a good fit for demographic shifts, among them an aging population and falling birth rates, as opined by some critics. 

However, proponents counter simply that one possible fix is to raise the payroll tax cap or increase the retirement age. Altman said, “Social Security is not broken.” “Just a few tweaks so that it’s solvent for the next generation.” 

However, Musk himself suggested privatization may be a possible solution. He said: ‘People would be able to put their funds into assets that grow.’ “We have a system destined to fail instead.”  

Social Media Reactions  

Musk’s comments generated a furious back-and-forth on social media. "Well, Elon Musk claiming Social Security is a Ponzi scheme as he avoids taxes?” one viral tweet reads. Finally, someone with a platform is telling the truth about Social Security, another user countered. Meanwhile, hashtags such as #SaveSocialSecurity and #MuskVsThePeople saw their presence on Twitter. 

Musk’s bigger push against government programs

The view that Musk brings against government programs and taxation is one reason for his comments on Social Security. He also criticized Medicare during the interview and said he supports a flat tax rate. However, he said, “The current system is too complex and inefficient.” “The way that we need to simplify it is to allow people to keep more of their money.” 

Musk’s libertarianism leaning favors these views of looking at the problem, as the focus is on the individual and limited government intervention. They have also turned him into a lightning rod for criticism, a criticism that has been boosted by the fact that his wealth now tops $200 billion.  

A History of Controversial Statements  

It is not the first time Musk has caused controversy with his comments. In recent years, he has come under fire for his position on COVID-19 vaccines, managing Twitter (X), and his public spats with regulators and politicians. Yet Musk’s influence remains undeniable. 

His remarks on Social Security already outpaced the news cycle on X, where there are more than 200 million followers.  

What’s Next for Social Security?  

The debate on the program’s future is heating up as those in power are feeling a mounting pressure to address the program's financial challenges. But consensus eludes policy makers, and proposals for raising the payroll tax cap, means testing benefits, and a variety of other measures. Political analysts added that 'whether you agree or disagree with him, Musk has a way of causing people to avoid conversations

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