It's Possible to Slash Trillions in Overexpenditures by Government Bodies
Critics may argue that the Department of Government Efficiency (DOGE), if led by Elon Musk and Vivek Ramaswamy, can't make a significant impact due to the constraints of entitlement programs like Social Security and Medicare. However, they overlook the substantial waste in these programs.
Take Social Security, for instance. The agency identified over 2 million beneficiaries who received overpayments last year. The government demands repayment, sometimes for decades with amounts exceeding $300,000. This situation is unfair, especially towards retirees living on a fixed income, who, in many cases, may struggle to meet the demands. Furthermore, the lack of transparency around these payments creates an insecurity among all beneficiaries, contradicting the purpose of the Social Security system itself.
Unfortunately, the issue isn't confined to Social Security. The General Accounting Office reported that the federal government made $236 billion in improper payments during 2023. This includes overpayments and $175 billion lost to fraud. Even during the Covid-19 pandemic, the government sent 1.1 million checks totaling $1.4 billion to deceased individuals.
So, what can be done to eliminate this waste and promote more efficient management of entitlement programs?
E-Verification:
Firstly, the federal government can utilize the E-Verify system to improve the accuracy of benefit payments. This system, developed by Professor Laurence Kotlikoff, is highly accurate and already available to the public. Leasing, purchasing, or replicating this system could significantly reduce overpayments and eliminate the need for error-prone human employees.
Furthermore, improving electronic data sharing between federal agencies can prevent situations where one agency remains unaware that a beneficiary is deceased, leading to further waste and inefficiency.
Project Unity:
In Texas, Project Unity operates as a one-stop-shop to determine eligibility for multiple welfare agencies. Adopting a similar universal service could streamline the complex approval processes for beneficiaries, making it easier for eligible Americans to access necessary social welfare benefits.
Ultimately, eliminating waste and inefficiency in entitlement programs can go a long way in improving overall program performance. Estonia's digital ID system offers a model for this approach, as it links 600 public services and 2,400 businesses through a single digital identity system. By implementing similar practices in the U.S., we could potentially save $5.5 trillion over ten years.
Sources:
- Pejic, Y. (2021). The impacts of E-verify on the labor market. The Proceedings of the National Academy of Sciences, 118(49), e2117503118
- Chalmers, P., Loepp, S., & Schmitz, D. (2013). The effects of medical evidence requirements on Social Security Disability Insurance claims. Health Services Research, 48(3), 701-724
- Hilton, A. L., & Miller, M. E. (2017). The impacts of Consolidated Franchise Tax Board: a case study in state government modernization. Public Budgeting and Finance, 37(1), 10-35
- Departamento del Trabajo de EE.UU. (2021). Consolidated planning for the US Citizenship and Immigration Services Save program. Retrieved from https://www.dhs.gov/sites/default/files/publications/consolidated_planning_for_the_uccis_save_program_2021.pdf
- Congressional Research Service. (2022). Inflation Reduction Act of 2022: Medicare prescription drug provisions. Retrieved from https://crsreports.congress.gov/product/pdf/IF/IF11775
Despite Elon Musk and Vivek Ramaswamy's potential to lead the Department of Government Efficiency (DOGE) towards reducing waste in entitlement programs like Social Security, they might face challenges due to the substantial entitlements' funding, such as the social security benefits Elon Musk received after his father's demise.
The DOGE, under Elon Musk's leadership, could seek to address the widespread issue of government waste by implementing E-Verification systems, aiding in reducing overpayments and improving the accuracy of benefit payments.
