Connect with us

Business

DOGE’s plans for Social Security are a ‘backdoor’ way to cut payments, experts warn: ‘This is the most serious threat I’ve ever seen to it’

Published

on



  • Elon Musk’s government efficiency team, DOGE, is taking aim at Social Security, claiming fraud while pushing controversial changes that could make it harder for seniors to access benefits. Critics, including Mark Cuban, say the changes are part of a “backdoor” effort to cut payments and gut the agency.

Elon Musk’s Department for Government Efficiency has a new target in its quest to eliminate government waste: Social Security.

Musk and the DOGE team have accused the agency of being engaged in widespread fraud, most notably claiming that tens of millions of dead people are erroneously receiving payments.

To curb some of this claimed identity fraud, the agency is enforcing stronger identity proofing procedures: a proposal that would force millions to file Social Security claims in person.

The change has been criticized by some, including billionaire Mark Cuban, who called the move a “backdoor way to cut payments.”

Former SSA officials and experts have echoed Cuban’s comments and raised concerns about the impact DOGE’s initiatives could have on Social Security payments.

“SSA recently required nearly all agency employees, including frontline employees in all offices throughout the country, to work in the office five days a week. This change ensures maximum staffing is available to support the stronger in-person identity proofing requirement,” a Social Security spokesperson told Fortune in an emailed statement. “The agency will continue to monitor and, if necessary, make adjustments, to ensure it pays the right person the right amount at the right time while at the same time safeguarding the benefits and programs it administers.”

Backdoor benefits cut

Laura Haltzel, a former associate commissioner at the Social Security Administration who resigned in late February, told Fortune DOGE was using the pretense of fraud within the agency as a way to reduce the amount of benefits being paid out.

The agency announced on Tuesday that individuals who are unable to verify their identity through an online My Social Security account will need to visit their local Social Security office to do so in person. A leaked memo also hinted that Social Security phone support may end identity verification, which would also increase in-person visits.

In response to the new identity proofing measures, the Social Security Administration also plans to expedite the processing of direct deposit change requests—both online and in-person—to just one business day, a significant reduction from the previous 30-day hold.

Several people, including Cuban, have raised concerns about how this could affect senior citizens living off Social Security checks.

“How many seniors who live exclusively off of their SS checks can afford internet? How many seniors no longer have a SS office near them now that dozens have been closed? What are people without internet or the ability to travel, or don’t have an office near them supposed to do if they need to reconfirm their bank account,” the billionaire said in a post on X.

Haltzel said that the changes would make it more difficult for some Americans to access their benefits while doing little to target actual fraud. She said the changes amounted to a “de facto” Social Security cut, the Trump administration’s promise not to touch the popular benefit.

“It’s creating an environment where the very beneficiaries we’re trying to serve are simply not going to be able to access the benefits they’ve paid for,” she said.

“We have always tried to make it easier for claimants…more efficient for claimants. And the justification that’s being put forward for why they are pushing this is the idea that there’s a great deal of fraud taking place,” she said. “Well, the math there just doesn’t add up.”

According to the SSA’s inspector general, only 0.3% of claims are attributable to fraud. Social Security’s payment accuracy rate is over 99% and the agency has several safeguards in place against improper payments, according to the progressive think tank Center on Budget and Policy Priorities.

Tiffany Flick, a former chief of staff at the U.S. Social Security Administration, has also said DOGE’s takeover of SSA appeared to be “based on the general myth of supposed widespread fraud.”

In a court filing, Flick raised concerns about DOGE staffers’ ability to protect sensitive taxpayer data. She said she was “not confident” that DOGE employees had “the requisite knowledge and training to prevent sensitive information from being inadvertently transferred to bad actors,” as the team had “never been vetted by SSA or trained on SSA data, systems or programs.”

“In such a chaotic environment, the risk of data leaking into the wrong hands is significant,” she said in the filing.

On Thursday, a federal judge temporarily blocked DOGE from accessing sensitive data at the Social Security Administration, saying they had little justification for their search for fraud.

“The DOGE Team is essentially engaged in a fishing expedition at SSA, in search of a fraud epidemic, based on little more than suspicion,” the judge wrote.

Musk’s ‘dead people database’

One of the main arguments Musk and DOGE have used for the need for reform is the claim that dead people are being paid Social Security, something Musk has referred to as a “dead people database.”

“Maybe Twilight is real and there are a lot of vampires collecting Social Security,” Musk said in a post on X.

“Having tens of millions of people marked in Social Security as ‘ALIVE’ when they are definitely dead is a HUGE problem. Obviously. Some of these people would have been alive before America existed as a country. Think about that for a second,” he added in a separate post.

Trump later echoed the claims in a press briefing, claiming “millions and millions of people over 100 years old” were receiving Social Security benefits: “They’re obviously fraudulent or incompetent.”

The claims have been debunked by experts and news outlets, but Musk has continued to push the claim.

“What people don’t understand is that you can have an active Social Security number for a very long time because Social Security pays a worker’s earning record and can pay widow’s benefits or children’s benefits, so there can be many different benefits,” Nancy Altman, president of Social Security Works and chair of the Strengthen Social Security coalition, told Fortune.

Altman said she was concerned that DOGE was trying to convince people that there was widespread fraud to undermine confidence in the program and the government, while using it as an excuse to “hollow out” the agency.

“It could end up completely nonfunctional, and create a lot of waste and abuse,” she said.

The numbers thrown out by Musk and Trump appear to misrepresent Social Security data.

“They don’t understand the difference between an active claim and active benefits and historical claims and historical benefits,” Haltzel said, pointing out that people may still be in the system but not actually be receiving benefits. “It’s simply not worth the time and effort of our staff to go into the records to undo the previous history of somebody who has passed on they’re not receiving benefit payments today.”

Job cuts could put the already understaffed agency under strain

Officials have also raised concerns about the proposed staff cuts at the SSA.

Haltzel, who took early retirement in February, said the team had “instilled in everybody at SSA a definite fear that if they didn’t leave, their job might be lost to them.”

She accused the cost-cutting team of intentionally creating a culture of fear and unpredictability and operating with a clear disdain for government employees.

DOGE has been clear about its plans to slash government headcount, but experts say cuts could cause the already understaffed SSA to crumble under the pressure.

“You can reduce the direct costs by having fewer federal employees, and you can make it harder for people to claim benefits because the people who would have served them are gone,” Haltzel said. “The fewer people, the longer it’s going to take.

“They are absolutely creating administrative burdens where there need not be any, under the guise of saving, you know, waste, fraud, and abuse,” she added.

Altman warned the agency’s workloads had increased as staffing levels decreased. The SSA hit a 25-year low in agency employees in the 2024 fiscal year.

“You’ve got increasing birth and decreasing staff,” she said. “I’ve been working on this program for the last 50 years, and this is the most serious threat I’ve ever seen to it.”

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Dollar Tree sold Family Dollar at a massive discount for just $1 billion. Just a decade ago, it was worth $9 billion

Published

on



Dollar Tree really has a discount for everyone. A group of private equity investors agreed to buy the flailing Family Dollar chain for $1 billion, a sharp loss for the Dollar Tree, which acquired it ten years ago for roughly $9 billion.

Brigade Capital Management and Macellum Capital Management will take over the nearly 7,000 Family Dollar stores. That’ll halve the number of stores Dollar Tree operates under its umbrella.

Why couldn’t Dollar Tree make Family Dollar work?

When Dollar Tree bought Family Dollar in 2015, it outbid rival Dollar General in hopes of cementing its status as the king of budget retailers. But Dollar Tree quickly learned that it had snapped up poorly maintained stores and found that Family Dollar had a different customer base that proved to be challenging to serve.

  • Family Dollar serves lower-income shoppers and sells a range of household items at varied, but still cheap, price points. Dollar Tree’s customer base tends to have higher incomes and tends to use the store for craft and party supplies that predominantly cost around $1.
  • But when Family Dollar and Dollar Tree stores were near each other, they were just similar enough to cannibalize each other’s foot traffic. The business also faced stiff competition from retailers like Amazon and Walmart.

The icing on the small, heavily discounted cake was the Justice Department slapping Family Dollar with a record $41.6 million fine for selling items that were stored in a West Memphis warehouse that was littered with not just live rats, but dead and decaying ones as well.

After it drops the Family Dollar baggage…Dollar Tree said yesterday it’s gaining market share among its higher income customers and may aim to offset President Trump’s tariffs by raising prices at some locations. In 2021, the chain increased prices to $1.25 saying it would allow stores to offer a wider range of products.—MM

This report was written by Matty Merritt and was originally published by Morning Brew.

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Meet the growing army of Amazon robots working alongside humans to reduce workplace injuries

Published

on



About an hour outside of Boston, Amazon is building the future of its warehouse business. Here, in a 350,000-square-foot facility, the shipping behemoth has headquartered its robotics hub, where the company designs, tests, and manufactures cutting-edge machines that will operate side by side with workers in its fulfillment centers—and, in time, replace many of them. 

Amazon is not known for its robotics prowess, but the e-commerce giant has quietly invested billions of dollars in the field for more than a decade, beginning with its acquisition of warehouse automation startup Kiva Systems for $775 million in 2012. Robotics is now central to Amazon’s efficiency and safety goals as the company seeks to produce autonomous, mobile machines that can pick up and sort packages.

I had the opportunity to visit the Massachusetts hub earlier in March—the new center opened in 2023 as an offshoot of the original Kiva facilities, which are about 50 miles away and still operational. Amazon handles the entire design and manufacturing process in-house, with programmers, hardware engineers, and testers all working under one roof to produce robots that will soon operate across Amazon’s global fulfillment network. 

Joseph Quinlivan, Amazon’s vice president of global robotics, has been with the company for its entire robotics journey, starting at Kiva and joining Amazon after the acquisition. “The great thing about Amazon is that it operates in many ways like a startup and has a startup mentality of speed,” he told me. “You don’t get bogged down with bureaucracy.”

He gave me a tour of Amazon’s innovative approach to robotic design, which includes brainstorming rooms for software engineers that are cluttered with whiteboards and overlook the sprawling factory floors. Quinlivan showed me his personal favorite: a robot called Proteus, which resembles an oversized Roomba, transports bins carrying packages, and can operate independently and side by side with employees.   

The future of work

Robots like Proteus are designed to replace repetitive motions by warehouse workers. Injuries are a major concern for the $2 trillion company, especially after a Senate investigation last year led by progressive Vermont Sen. Bernie Sanders put a spotlight on safety failures at Amazon’s fulfillment centers. The investigation found that injuries are nearly twice as high as the industry average. Amazon rejected the investigation’s findings, describing it as “an attempt to collect information and twist it to support a false narrative.”  

Still, Quinlivan acknowledged that Amazon’s push into robotics is focused on the “most challenging tasks” carried out by workers, such as lifting and moving items. “[Safety] is front and center,” Quinlivan said, arguing that the newer generation of machines will be able to automate rote tasks 10-fold more than the previous one. “That’s where we start.” 

Automation, of course, also conjures fears of replacement. Amazon says that it has invested more than $1 billion in upskilling, or training employees for different roles. “It’s creating new, exciting jobs and opportunities for potentially a group of people that wouldn’t have that opportunity,” Quinlivan said. 

Robotics is integral to Amazon’s plans to get packages from your shopping cart to your door with increasing speed. But as the company fends off accusations of worker safety issues and job loss, its rapidly evolving slate of machines is also a symbol of the company’s relentless pursuit of productivity.  

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Inside the history of ChatGPT’s viral Studio Ghibli-style images: Founder once said he was ‘utterly disgusted’ by AI animation

Published

on

Fans of Studio Ghibli, the famed Japanese animation studio behind “Spirited Away” and other beloved movies, were delighted this week when a new version of ChatGPT let them transform popular internet memes or personal photos into the distinct style of Ghibli founder Hayao Miyazaki.

But the trend also highlighted ethical concerns about artificial intelligence tools trained on copyrighted creative works and what that means for the future livelihoods of human artists. Miyazaki, 84, known for his hand-drawn approach and whimsical storytelling, has expressed skepticism about AI’s role in animation.

Janu Lingeswaran wasn’t thinking much about that when he uploaded a photo of his 3-year-old ragdoll cat, Mali, into ChatGPT’s new image generator tool on Wednesday. He then asked ChatGPT to convert it to the Ghibli style, instantly making an anime image that looked like Mali but also one of the painstakingly drawn feline characters that populate Miyazaki movies such as “My Neighbor Totoro” or “Kiki’s Delivery Service.”

“I really fell in love with the result,” said Lingeswaran, an entrepreneur who lives near Aachen, Germany. “We’re thinking of printing it out and hanging it on the wall.”

Similar results gave the Ghibli style to iconic images, such as the casual look of Turkish pistol shooter Yusuf Dikec in a T-shirt and one hand in his pocket on his way to winning a silver medal at the 2024 Olympics. Or the famed “Disaster Girl” meme of a 4-year-old turning to the camera with a slight smile as a house fire rages in the background.

ChatGPT maker OpenAI, which is fighting copyright lawsuits over its flagship chatbot, has largely encouraged the “Ghiblification” experiments and its CEO Sam Altman changed his profile on social media platform X into a Ghibli-style portrait. In a technical paper posted Tuesday, the company had said the new tool would be taking a “conservative approach” in the way it mimics the aesthetics of individual artists.

“We added a refusal which triggers when a user attempts to generate an image in the style of a living artist,” it said. But the company added in a statement that it “permits broader studio styles — which people have used to generate and share some truly delightful and inspired original fan creations.”

Studio Ghibli hasn’t yet commented on the trend. The Japanese studio and its North American distributor didn’t immediately respond to emails seeking comment Thursday.

As users posted their Ghibli-style images on social media, Miyazaki’s previous comments on AI animation also began to resurface. When Miyazaki was shown an AI demo in 2016, he said he was “utterly disgusted” by the display, according to documentary footage of the interaction. The person demonstrating the animation, which showed a writhing body dragging itself by its head, explained that AI could “present us grotesque movements that we humans can’t imagine.” It could be used for zombie movements, the person said.

That prompted Miyazaki to tell a story.

“Every morning, not in recent days, I see my friend who has a disability,” Miyazaki said. “It’s so hard for him just to do a high five; his arm with stiff muscle can’t reach out to my hand. Now, thinking of him, I can’t watch this stuff and find it interesting. Whoever creates this stuff has no idea what pain is.”

He said he would “never wish to incorporate this technology into my work at all.”

“I strongly feel that this is an insult to life itself,” he added.

Josh Weigensberg, a partner at the law firm Pryor Cashman, said that one question the Ghibli-style AI art raises is whether the AI model was trained on Miyazaki or Studio Ghibli’s work. That in turn “raises the question of, ‘Well, do they have a license or permission to do that training or not?’” he said.

OpenAI didn’t respond to a question Thursday about whether it had a license.

Weigensberg added that if a work was licensed for training, it might make sense for a company to permit this type of use. But if this type of use is happening without consent and compensation, he said, it could be “problematic.”

Weigensberg said that there is a general principle “at the 30,000-foot view” that “style” is not copyrightable. But sometimes, he said, what people are actually thinking of when they say “style” could be “more specific, discernible, discrete elements of a work of art,” he said.

“A ‘Howl’s Moving Castle’ or ‘Spirited Away,’ you could freeze a frame in any of those films and point to specific things, and then look at the output of generative AI and see identical elements or substantially similar elements in that output,” he said. “Just stopping at, ‘Oh, well, style isn’t protectable under copyright law.’ That’s not necessarily the end of the inquiry.”

Artist Karla Ortiz, who grew up watching Miyazaki’s movies and is suing other AI image generators for copyright infringement in a case that’s still pending, called it “another clear example of how companies like OpenAI just do not care about the work of artists and the livelihoods of artists.”

“That’s using Ghibli’s branding, their name, their work, their reputation, to promote (OpenAI) products,” Ortiz said. “It’s an insult. It’s exploitation.”

This story was originally featured on Fortune.com



Source link

Continue Reading

Trending

Copyright © Miami Select.