When the government pays people not to work, more people volunteer not to work. The free market responds. It’s a matter of supply and demand. When demand increases, supply increases.
From April through June, more Americans went on the dole, claiming they were disabled, than went onto a payroll. Most of them will stay on this dole. Here are the numbers. New Jobs: 225,000. Newly disabled Americans: 246,000.
Unemployment benefits eventually run out. After 99 weeks, the federal government says “no more free money.” But payments for disabilities are permanent. Once someone gets on the list as a disabled person, he stays on until he tells the government he is well. Not many disabled Americans ever tell this to the government.
Since Obama was inaugurated in January 2009, 5.4 million workers and their dependents been enrolled on the disability dole.
But let’s not blame Obama. The following chart reveals that the flood of newly disabled people began in 2008, the first full year of recession.First, the economy became disabled. Then workers did.
As you can see, almost twice as many people have gone on the disability dole since 2009 than who got jobs.
In April, about 10.8 million people were on the disability dole. Since April, new dole participants have exceeded new jobs.
They get their checks from the Disability Insurance division of Social Security.
How many leave the program each year? About 700,000. Why do they leave? Two reasons: they go onto Social Security old age retirement program, or else they die. In short, once on the disability dole, most eligible people stay on.
“We see a lot of people applying for disability once their unemployment insurance expires,” said Matthew Rutledge, a research economist at Boston College’s Center for Retirement Research. . . .
As the Congressional Budget Office explained : “When opportunities for employment are plentiful, some people who could quality for (disability insurance) benefits find working more attractive … when employment opportunities are scarce, some of these people participate in the DI program instead.”
We hear that the unemployment rate is down to 8.2%. Statistically, this is correct. What the media do not tell you is this: when a person goes on the disability dole, he is removed from the list of unemployed workers.
Where does the money to pay these people come from? From the general fund. The Social Security System went into deficit mode in 2010. Ever since then, the general fund has had to cover this deficit.
The general fund is borrowing $1.2 trillion a year.
For more information on the cost of the disability dole, click the link.