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Checks for Newly Disabled Americans Rise Faster than New Jobs

Written by Gary North on July 19, 2012

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.

Continue Reading on news.investors.com

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7 thoughts on “Checks for Newly Disabled Americans Rise Faster than New Jobs

  1. Victoria DeLacy says:

    I owned my own successful day care home business which paid 3/4 of the household expenses from 1984 through early 1986 but then suffered a nearly fatal stroke which made it necessary to close out the thriving business and go on Social Security. I went to college subsidized entirely by tax funding through scholarships and financial aid and graduated in the top 10% of my college class back in 1999, am fluent in Spanish as a second language and have proven fund-raising skills but doe to the total lack of placement assistance as well as the able-ism in our society, I have not been able to secure a single permanent full-time job since graduation a dozen years ago. That is a crime to both the beneficiary who would much rather be working and to the taxpayer who subsidized that higher education in the first place. When one tries to complain to elected representatives, it falls upon deaf ears. You cannot imagine how frustrating that is for the challenged person trying to reach for the American dream like everyone else!

  2. I have a sister who has always been so indolent she is hard to be around. She feels like a complete energy suck. Not that she is a terrible person, she is just terminally lazy. She finally got disability. I have never been able to find out what her disability is, but a nurse I met told me that it is likely categorized as a personality disorder. In some ways it is a relief to the family (I admit it) otherwise she would be camped out at our homes smoking her cigarettes. This system will have to collapse, we can only dilute the dollar so much with printed money not based on any wealth production. I read one liberal economist that said we should just go on with this debased system until civilization collapses in ten years because we at least had ten more years of civilization. So I guess my granddaughter's will be caught in the collapse of civilization so people like my sister can continue collecting disability along with all the other disasters of this system for ten more years, this sound like a terrific sin of society to me, which will be punished. Remember from the beginning "From the sweat of thy brow, thy shall earn thy bread"

  3. Texas Chris says:

    Start a business. If you're smart enough to finish in the top 10% of your class, you're smart enough for run a firm.

  4. Texas Chris, your statement ending with “You’re smart enough for run a firm” shows me that you didn’t put enough thought into that statement to proof read what you have written or either do not have enough grammar skills to form a coherent sentence. It also shows me you have never tried to start a business. Not everyone is cut out to run a business much less “run a firm”, whatever that means. Did you mean she should have applied for a CEO position because she graduated in the top 10% of her class. She doesn’t say what her degree is. If everyone who can claim that distinction owned a business, there would be tens of millions more business owners. A business not only needs an owner but employees. Not everyone is cut out nor can find backing to start a business much less make it work for the long haul. I could name dozens of reasons a business might fail and more reasons why someone wouldn’t want to own a business since most small business owners have put everything in their life on hold to make the business successful for any length of time.

    How many people do you know who graduated in the top 10% of their class became a CEO immediately afterward, or even became a CEO in their entire life. I can only surmise that you’re so qualified in so many ways you simply walk in the door of any “firm” large enough to need someone to oversee it and bam, you got the job. It must be nice to be that talented.

  5. Supershell says:

    Part of the problem is the attorney firms that are flooding TV advertising that they can get you on disability even if you have been turned down by Social Security. This must be a lucrative business or they wouldn't be spending all that money for advertising.

    This same complaint also applies to the various firms that advertise that they can get you assorted medical devices such as electric stairways, bathtubs and handicap scooters and electric wheelchairs from Medicare.

    Where there is money to be made defrauding the government, the advertising on TV is there.

  6. STOPTHEMADNESS says:

    It ashame, it make people who really are disabled look bad. I worked for 32 years in accounting, I had to have my entire neck fused with a plate and 26 screws (it no longer moves more than 5 degrees in any direction) I also had to have my spinal column craved open with pins and rods holding it stabile. I need to have L3, L4, L5. S1 & S2 fused together. This makes it impossible to work anymore. I wish I could work again, I miss the people, the money and the feeling of pride for a days work done.

  7. EXMACHINIST says:

    Stopthemadness, I know how you feel. I was a machinist for 28 years. I really loved what I did. I made a very good wage. The surgery I had was not as involved as yours but I too am not able to work anymore, I sure do miss the satisfaction and pride that I felt at the end of the day of a job well done. I don't like being on disability, but it sure beats starving! There are a lot of machining and CNC jobs available in my area, sure do wish I could still be in the job market. Not everyone that is on disability went on it because they couldn't find a job some of us have to be on it, but would still rather be able to work.