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Is Disability the New Welfare?
The government in Britain recently did something interesting. It asked everyone receiving an "incapacity benefit" a disability program slowly being phased out under new reforms to submit to a medical test to confirm they were too disabled to work. A third of recipients (878,000 people) didn't even bother and dropped out of the program rather than be examined. Of those tested, more than half (55%) were found fit for work and a quarter were found fit for some work. In 1960, when vastly more Americans were involved in physical labor of some kind, 0.65% of workforce participants between the ages of 18 and 64 were receiving Social Security disability insurance payments. Fifty years later, in a much healthier America that number has grown to 5.6%. In 1960, 134 Americans were working for every officially recognized disabled worker. Five decades later that ratio fell to roughly 16 to 1.  In an illuminating and predictably controversial exposé for "This American Life," NPR's "Planet Money" team tried to figure out why, since 2009, nearly 250,000 people have been applying for disabilities every month (while we've averaged only 150,000 new jobs every month).One factor has to do with what correspondent Chana Joffe-Walt calls the "Vast Disability Industrial Complex." These are the sometimes shady, sometimes well-intentioned lawyers who fight to fatten the rolls of disability recipients. These lawyers get a cut of every winning claimant's "back pay." The more clients, the bigger the take. That's why they run ads on TV shouting, "Disabled? Get the money you deserve!" That points to the even bigger parts of the story. As the nature of the economy changes, disability programs are sometimes taking the place of welfare for those who feel locked out of the workforce and state governments are loving it. States pay for welfare, the feds pay for disabilities. Posted by: GolfBravoUSMC 2013-04-04 |
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