Social Security Is Doomed, I Tell You, Doomed!
The leading safety-net program for America's disabled workers is in a financial death spiral in the aftermath of the Great Recession.
The sour economy, weak eligibility standards and a wave of aging baby boomers are driving an explosive increase in the number of injured workers who get disability benefits through the Social Security Disability Insurance program.
At the current growth rate, the SSDI trust fund, which pays for benefits, won't have enough money to meet its obligations in 2018.
One out of every five Social Security dollars is spent in the disability insurance program. The problem isn't so much that we've paying disabled people too much but that we're probably paying too many people who claim to be disabled. Since 1985, Social Security Disability applications have doubled as a share of the population. It is possible, but unlikely, that Ameica's disability population has doubled since the mid-1980s. The more reasonable explanation is that more disabled workers in tough times have figured out that they can get paid to not work.
Labels: Media and Social Security