WSJ: Everyone is now on disability

Discussion in 'Politics & Religion' started by Grandluxe, Apr 9, 2013.

  1. ECONOMY Updated April 7, 2013, 10:39 p.m. ET
    Workers Stuck in Disability Stunt Economic Recovery

    The unexpectedly large number of American workers who piled into the Social Security Administration's disability program during the recession and its aftermath threatens to cost the economy tens of billions a year in lost wages and diminished tax revenues. Signs of the problem surfaced Friday, in a dismal jobs report that showed U.S. labor force participation rates falling last month to the lowest levels since 1979, the wrong direction for an economy that instead needs new legions of working men and women to drive growth and sustain a baby boomer generation headed to retirement. Michael Feroli, chief U.S. economist for J.P. Morgan, estimates that since the recession, the worker flight to the Social Security Disability Insurance program accounts for as much as a quarter of the puzzling drop in participation rates, a labor exodus with far-reaching economic consequences.

    The unemployment rate in Friday's report fell to a four-year low of 7.6%, which most times signals job growth. This time it reflected workers leaving the workforce, a problem that could persist: Economists say relatively few people are likely to trade their disability checks for paychecks, in part because the program doesn't give much incentive to leave.

    Federal Reserve Chairman Ben Bernanke has worried that the financial crisis would lead to a permanent loss of workers, setting up what economists call hysteresis, a term borrowed from physics to describe temporary market changes that lead to permanent economic losses. <B>It is no longer a theoretical problem, said David Autor, a professor at the Massachusetts Institute of Technology, who has studied the disability program. The economy has a case of hysteresis, he said, created by the permanent transfer of workers to disability rolls.</B>

    With an expanded list of disabilities added by Congress in 1984, more than half of people awarded benefits now qualify because of musculoskeletal problems—including back pain—mood disorders and other mental problems, according to Social Security data. <B>Since the recession, more people have gone on disability, on net, than new workers have joined the labor force.</B> Mr. Feroli estimated the exodus to disability costs 0.6% of national output, equal to about $95 billion a year. "The greater cost is their long-term dependency on transfers from the federal government," Mr. Autor said, "placing strain on the soon-to-be exhausted Social Security Disability trust fund."

    http://online.wsj.com/article/SB10001424127887323511804578298151374531578.html

    We are doomed.
     
  2. Ricter

    Ricter

    "We are doomed."

    <img src="http://research.stlouisfed.org/fred2/data/USARGDPC_Max_630_378.png">
     
  3. pspr

    pspr

    Unless you can get on disability payments!

    BTW, Rectum, your chart is IRRELEVANT to the discussion. Idiot.
     
  4. Disability is the new black. Just sayin'.
     
  5. Tsing Tao

    Tsing Tao

    Yeah, I'm not really sure what he's trying to get to, either.
     
  6. "Everyone is now on disability"
    ------------

    I really don't have a problem with that. Todays work environment is a joke. The workplace is a friggin sandbox loaded with social experiments. You look at somebody cross eyed, you're gonna get sued, or your boss will or your company will.

    The workplace is full of one armed workers, because the other arm is holding a cell phone to their ear. Co workers swearing at you in their foreign language. Everybody has their own agenda and it doesn't involve the good of the company or promote a team culture.

    Management are nit pickers, they have to be, procedure has to be followed.
     
  7. Ricter

    Ricter

    Ok, I edited it. We are not doomed.

    Stfu, pisspoor.

    : )
     
  8. Lucrum

    Lucrum

    What's this got to do with you over there in the UK?
     
  9. pspr

    pspr

    Ricter! Such talk from our Commie moron.

    If socialism is the answer, we are doomed. With the indoctrination that is going on in the schools we may take that path.

    Unions need to be taken out of government and short of that, the major school system in America needs to be privatized. Otherwise, we may well be doomed.

    Oh and about that "STFU" it really should apply to you and your nonsensical comments in this forum. Only when Buckwheat shows up are you not the most idiotic poster on this forum.
     
  10. pspr

    pspr

    He used the same baby argument in another thread. He thinks it is alright to have massive numbers of workers dropping out of the labor force because productivity per worker is increasing.

    Only a blind man, like Rectum, cannot see the problem before his eyes.
     
    #10     Apr 9, 2013