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Thursday, October 30, 2014

Social Security Disability Will Go Bust In 2016—-Unless Work Incentives Are Restored

In 2013, the Social Security Disability Insurance (SSDI) program spent $143 billion while taking in just $111 billion. That shortfall, explains Jagadeesh Gokhale, economist for the Cato Institute, will only continue, and the SSDI Trust Fund is projected to run out of money entirely in 2016.

In addition to being insolvent, Gokhale explains that the SSDI program — intended to provide a safety net for individuals unable to work — is full of work disincentives. Many individuals enrolled in the program are actually able to work, at least to some degree, but they choose not to for fear of losing SSDI benefits.

Gokhale explains that some individuals move into the SSDI program after exhausting unemployment benefits. Indeed, various research indicates that there are a number of SSDI enrollees with work capabilities:
A study comparing identical SSDI applicants — some of whom were admitted to the program while the rest were rejected from the program — found that many rejected applicants returned to the work force, indicating that over 25 percent of current SSDI beneficiaries actually have work capacity.
Another study found the likelihood of a rejected SSDI applicant returning to work to be 35 percent.

5 comments:

Anonymous said...

Why don't we ever hear that the welfare department will run out of money?

Anonymous said...

As someone who paid not only my own Social Security, but also the employers contribution for 15 employees for 25 years as well as countless other personal and business related federal and state taxes I have a unique perspective that developed later in my life. After almost losing my life in an accident, through no fault of my own, I was forced to close my business putting those 15 people out of good paying jobs and after dissolving my company, paying severance to those employees I walked away with very little money and several major disabilities that prevent me from working at all. The abuses I've seen through meeting other people who are "disabled" make me physically ill. There are countless people who like our own Salisbury city council member Mrs. Mitchell, J.T. and multiple persons like them who seem able to work 40 plus hours in there attempts to screw the citizens, but can't work a paying job that requires in some instances less effort than they put forth in there political endeavors. I suggest we each start to create a least of these types of individuals to turn over to authorities repeatedly in order to get them disqualified from Social Security/Disability. If everyone did this maybe with the pressure that's coming up soon regarding lack of funding for those that deserve it we can make a difference for real CHANGE!

Anonymous said...

I have a relative on disabillty that says he has a bad back but it seems to be ok whenever someone wants to hire him for cash.

LastMohican said...

3:37 PM

you can't see all disabilities with you eye. a disability does NOT have to be a physical one.

Anonymous said...

NOT TO WORRY... the govt will just transfer funds from the Social Security account to keep this sham going.