U.S. REP. DANNY K. DAVIS
U.S. Rep. Danny K. Davis (D-7th) is sounding the alarm about what he says is a dangerous attempt by former President Donald Trump and billionaire entrepreneur Elon Musk to dismantle and privatize Social Security, calling it an attack on one of the country’s most critical lifelines for seniors.
In a virtual town hall meeting held Wednesday, April 23, Davis warned reporters and a number of seniors that Trump and Musk—who now heads the controversial Department of Government Efficiency (DOGE)—are working to undermine the most effective anti-poverty program in American history.
“We must fight back and resist these cuts that the Trump administration and Elon Musk are making,” Davis said. “They want to privatize Social Security, and that is not good because what if something goes wrong with your investment if it goes bad? It could put you in serious jeopardy.
“I am totally opposed to the privatization of Social Security,” Davis added. “I am opposed to cutting Social Security because that may end up cutting the benefits.”
Privatization of Social Security would mean shifting the current system—where workers and employers contribute to a government-managed trust fund—into one where individuals invest their retirement funds in private accounts. These accounts would be subject to the fluctuations of the financial markets and managed by investment firms.
Advocates argue privatization could yield higher returns and give people more control over their retirement. Critics warn it would eliminate the guarantee of benefits and expose workers, especially low-income earners and communities of color, to the risks of market downturns and mismanagement.
Davis strongly opposes this approach. “Social Security is a vital program for African Americans who depend on this program as their sole source of income,” he said. “Any realignment or cuts of this program would put them in serious jeopardy.”
The Long History of the
Debate
The idea of privatizing Social Security is not new. It gained significant attention during President George W. Bush’s administration in the early 2000s when he proposed partial privatization through individual accounts. The proposal met widespread opposition and ultimately failed.
Since then, libertarian-leaning think tanks such as the Cato Institute have continued to push privatization, often citing concerns about the trust fund’s long-term solvency. However, there is no conclusive evidence that privatized systems perform better or provide more stability. In fact, financial experts have warned that market-based accounts could disadvantage vulnerable populations, especially during economic downturns.
Some nations have experimented with privatized pension systems. Chile’s model, implemented in 1981, replaced its public system with private savings accounts. Initially hailed as a bold reform, it eventually came under heavy criticism for high fees, inadequate payouts, and deep inequality among retirees. In recent years, the Chilean government has moved to reform the system due to widespread public dissatisfaction.
Other countries like Canada, Sweden, and the Netherlands have blended approaches, combining government-run systems with supplemental private savings. However, none have fully replaced public social security with privatized accounts on a large scale like what some U.S. leaders have proposed.
In his remarks, Davis emphasized that many of his constituents—especially African Americans—rely on Social Security as their primary or sole source of income.
“There are about 100,000 seniors in my district,” Davis said. “That is the same in other Black districts. Many of those individuals did not have professional jobs or 401(k)s that other people have.”
This economic disparity has made Social Security not only a retirement program but a racial equity issue. Black workers often earn less over their lifetimes, have higher disability rates, and face shorter life expectancies. Social Security’s progressive benefit formula and survivor protections have helped narrow some of those gaps.
Davis also criticized the spread of misinformation around the program, particularly from Musk, who has called Social Security a “Ponzi scheme” and made unfounded claims that millions of Americans over 100 years old, as well as dead people, are receiving benefits.
“Social Security is under attack,” Davis said. “And there are individuals, including the President, Musk, and people associated with them who are talking about privatizing Social Security, and that frightens us.”
According to Investopedia, “a minuscule number of real fraud cases have sparked a viral myth that tens of millions of dead people are collecting Social Security benefits from the U.S. government. They aren’t—but the notion that this could be true has caused controversy among the living. Erroneous payments represent a fraction of a percent.”
Davis warned that cutting Social Security could have a domino effect on other critical safety net programs.
“If you cut Social Security, you also cut Medicaid, which financially affects nursing homes,” he said. “Then you will have nursing homes in your own home taking care of your loved ones.”
Several seniors participating in the virtual town hall expressed alarm at the developments and urged Democrats to push back more forcefully.
One woman on the line said she filed for her Social Security benefits in January and has yet to receive any payments or communication from the agency. Her story resonated with others on the call who fear similar delays and disruptions could become more common if the system is privatized.
Rather than dismantling Social Security, Davis and many economists support measures to strengthen it. Ideas include lifting the cap on taxable income (currently $168,600), raising the retirement age gradually, or imposing new revenue streams such as wealth or financial transaction taxes.
These proposals aim to preserve the social insurance model—where risk is pooled and benefits are guaranteed—rather than shifting responsibility to individuals navigating volatile markets.
“We must protect what works,” Davis said.
As the conversation around Social Security intensifies, Davis said he will continue to speak out and mobilize support to protect the program that more than 67 million Americans depend on every month.