Saturday, September 5, 2015

Ignoring a Major Factor

The Los Angeles Times has a long article about discouraged workers not returning to the job market. Oddly, it completely omits a discussion of one of the most important reasons this is so.

During the recent Great Recession the Obama administration made acquiring Social Security Disability Insurance and Supplemental Security Income much easier. Literally millions qualified for one or the other. See what the non-partisan Congressional Budget Office reports:
Between 1970 and 2009, the number of people receiving DI benefits more than tripled, from 2.7 million to 9.7 million. That jump, which significantly outpaced the increase in the working-age population during that period, is attributable to several changes—in characteristics of that population, in federal policy, and in opportunities for employment.
Declining birth rates mean the population is aging, many immigrants speak little English, federal policy in regard to SSDI/SSI is looser, and employment opportunities suck for both high school dropouts and high school grads with no college degree. Once people get disabled status, draw a stipend, and adjust their living standard downward to live on the stipend and other aid, it is easier to not look for work, to de facto "retire" on SSDI or SSI.