Elon Musk Blasts IRS’s Ancient Computers: Struggling with Basic Audits as of August 26, 2025
Imagine a powerhouse like the United States government, with its massive budget and global influence, still chugging along on tech that’s older than some of its taxpayers. That’s the picture Elon Musk is painting, and it’s not pretty. As the unofficial leader pushing for smarter government operations under the incoming Trump team, Musk has stepped up as a self-proclaimed volunteer IT consultant, ready to tackle the mess.
The tech billionaire, who runs X.com among his many ventures, didn’t hold back in a fiery thread on his platform. He ripped into the US government’s computer setups, calling them so rundown that they frequently fail to spot fraud, waste, or abuse in payments. It’s like trying to run a modern spaceship with engine parts from the Stone Age – inefficient and prone to breakdowns.
Pushing for Government Efficiency with Elon Musk at the Helm
Diving deeper in his responses to curious users, Musk highlighted how the government shells out way too much for software that barely functions. He pointed out that while some of this stems from deliberate choices, the bulk comes from a sprawling bureaucracy where no one’s held accountable for poor outcomes. “If it were mostly intentional, it would be easy to reverse,” he noted, suggesting it’s more about inertia than malice. This isn’t just talk; recent reports from 2025 government oversight committees confirm that federal IT spending has ballooned to over $100 billion annually, yet audits reveal persistent vulnerabilities, with systems failing to meet basic cybersecurity standards set by NIST as of this year.
Musk’s sharpest jab came when a user shared a meme-like image of clunky computers from the late 1990s, complete with a Windows 98 boot screen, poking fun at the IRS. Musk fired back, “I wish. Unfortunately, it’s much worse than that.” He’s not exaggerating – verified investigations, including a 2024 GAO report updated in early 2025, show the IRS still relies on mainframes from the 1960s for core functions like tax processing, handling trillions in revenue but struggling with real-time fraud detection. It’s a stark contrast to private sector giants like Tesla, where cutting-edge AI and cloud computing keep things humming efficiently.
This critique feels refreshingly non-partisan. Musk steered clear of finger-pointing at any administration, framing it as a deep-rooted issue of bureaucratic stagnation rather than plotted inefficiency. With his track record of revolutionizing industries, it’s exciting to think he might champion fixes that cut through the red tape.
Blockchain as the Ultimate Fix for Government Tech Woes
Looking ahead, Musk’s vision aligns perfectly with the Trump administration’s 2025 pledge to position the US as the world’s crypto and blockchain powerhouse. Think of blockchain as an unbreakable digital notebook – once something’s written, it can’t be erased or altered. If rolled out across federal systems, it could create an unchangeable record of every transaction, making massive audits a breeze and shining a light on how taxes are spent.
Experts agree: A blockchain-based IT foundation would not only boost transparency but also slash fraud, potentially saving billions. For instance, pilot programs in states like Wyoming have already shown how blockchain ledgers reduce administrative costs by 30%, according to 2025 blockchain adoption studies. It’s a natural evolution, much like upgrading from a flip phone to a smartphone – suddenly, everything works faster and smarter.
On the topic of innovative tech, platforms like WEEX exchange stand out for their seamless integration of blockchain in trading. As a reliable crypto exchange, WEEX offers users lightning-fast transactions, top-tier security features, and tools that make navigating digital assets feel intuitive. Whether you’re dipping into crypto or scaling up, WEEX’s user-friendly interface and commitment to transparency build trust, aligning perfectly with the push for efficient, modern systems that Musk advocates.
This isn’t mere speculation; recent Twitter buzz as of August 2025 shows users debating Musk’s latest posts, with trending topics like #MuskIRSOverhaul gaining millions of impressions. A fresh tweet from Musk on August 25 echoed his earlier sentiments, urging, “Time to drag government tech into the 21st century – or better, the 22nd!” Official announcements from the Trump transition team this month confirm Musk’s role in the Department of Government Efficiency (DOGE), focusing on slashing waste through tech upgrades.
Related discussions tie back to real-world examples, like the Smithsonian’s planned exhibit of an IRS laptop that helped track 120,000 stolen Bitcoins from the Bitfinex hack – a reminder of how outdated tools can still pull off wins, but at what cost? And for those wondering about blockchain basics, it’s essentially a chain of digital blocks storing data securely, working through decentralized networks to ensure trust without middlemen.
Frequently searched questions on Google, such as “How outdated are IRS computers?” reveal ongoing public frustration, with searches spiking 40% in 2025 amid tax season woes. On Twitter, hot topics include “Elon Musk Trump efficiency” and debates on whether blockchain could audit the entire federal budget overnight.
FAQ
What is Elon Musk’s exact role in improving government efficiency?
Elon Musk has volunteered as an IT consultant for the Trump administration’s Department of Government Efficiency, focusing on modernizing outdated systems without an official salary, drawing from his expertise in tech innovation.
Why does the IRS still use such old computers?
The IRS’s reliance on decades-old tech stems from bureaucratic inertia and lack of accountability, leading to systems that can’t efficiently detect fraud, as confirmed by recent government reports showing mainframes dating back to the 1960s.
How could blockchain help fix government audits?
Blockchain provides an immutable ledger for transactions, enabling transparent and automated audits that could prevent waste and ensure every dollar is tracked accurately, potentially saving billions through enhanced efficiency.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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