Elon Musk Is Taking on Social Security: 4 Other Ways He Could Impact Your Wallet
Written by
John Schmoll
Edited by
Amber Barkley
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In a recent interview on Joe Rogan’s podcast, Elon Musk boldly claimed that Social Security is a Ponzi scheme. Understandably, this assertion stoked fears that the head of the nascent Department of Government Efficiency (DOGE) could instigate cuts to the program.
Over 73 million Americans receive some form of Social Security payment, leaving many nervous about how cuts would impact their budgets. Social Security isn’t the only area Musk could impact Americans’ wallets. Here are four other ways he could affect your financial life.
Higher Fees and Fewer Protections
In its brief existence, The Consumer Financial Protection Bureau (CFPB) has aimed to protect Americans from financial fraud and onerous fees. The bureau has recovered over $20 billion for American consumers since its launch in 2008, according to CBS News.
However, Musk has set his sights on ending the CFPB. While recent court orders have paused killing the CFPB, per The New York Times, Musk clearly wants it gone. Lawsuits the CFPB was actively working on are paused, and no refund checks are being mailed to victims of fraud.
If Musk successfully ends the CFPB, protections against high fees — placed under the Biden administration — could be rolled back, forcing Americans to pay more in late fees and other burdensome fees.
Potential Delay in Tax Refunds
If you’re waiting longer to receive your tax refund, Musk might be to thank. DOGE sought to lay off thousands of IRS probationary employees in mid-February. Courts have reinstated some of these workers, but any reduction in workforce could impact how soon Americans receive tax refunds, especially those with complex returns.
Musk has also sought to eliminate IRS Direct File, a free tax filing program for qualifying Americans, USA Today reported. Musk believes the programs lead to unnecessary government spending. Politicians claim the programs will be available this year.
For Americans facing challenges using a free filing program, they could face an average cost of $220 to hire a tax preparer. However, it’s important to note that other free filing options, including IRS Free File, are still available to those who qualify.
Increased Food Costs
Food costs have been painful for many Americans. The cost of food increased 2.6% in the 12 months ending February 2025, according to the Bureau of Labor Statistics. Recent actions from Musk and DOGE could increase food prices further.
Musk directed thousands of U.S. Department of Agriculture (USDA) employees to be let go. While they have been temporarily reinstated, reductions could lead to increased time to inspect food, leading some food to be ruined as it awaits inspection, Wired reported. This could reduce supply and impact pricing.
Additionally, the USDA canceled $1 billion in funding for schools and food banks to purchase food from local farms. Unfortunately, this could harm local famers’ incomes, as well as the budgets of qualifying people in need of affordable meals.
Job Cuts
Preceding the election, President Donald Trump and Musk communicated their desire to reduce the federal workforce. They have acted swiftly, eliminating positions in various departments.
These layoffs could have numerous impacts on Americans’ wallets. Loss of income for those impacted hurts most. However, other results could include reduced spending where impacted workers live, potentially causing layoffs at private businesses.
Musk caused alarm with his comments on Social Security. The billionaire is playing a key role in recommending policy decisions that could directly impact your wallet in other ways. Staying informed and safeguarding your finances is the best course of action to move forward during this time.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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