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May 22, 2009

How Naive

David Wessel writing in today's Wall Street Journal:
For lots of workers, particularly those over 40, the alternative to looking for work is applying for Social Security disability benefits -- and dropping out of the labor force forever

Of course, many of those collecting disability truly can't work. But for workers with minor disabilities who could and, in many cases, would rather work, the Social Security benefits become the only way to pay the rent. Applications for Social Security disability in April were 20% higher than a year earlier. The application process can be arduous, often taking two years. Even among those whose applications are ultimately rejected, 60% never go back to work, says David Autor, a Massachusetts Institute of Technology economist who has studied disability trends. ...

One approach is to tweak the disability benefit to encourage recipients, more than current rules do, to think of the benefit as a temporary, rather than an all-or-nothing, permanent condition. At a recent town-hall meeting, Mr. Obama was asked about lifting limits on the wages a person on disability can earn. The president's answer suggested he'd been briefed recently: "Social Security disability has gone up significantly during this recession. In principle...I would like to raise the income limits to encourage people to become more self-sufficient. In practice, it costs money on the front end, even though long term it may save money." But he made no promises: "What I'd like to do is examine this in the broader context of Social Security reform and Medicare/Medicaid reform," he said.
"Many" of those on Social Security disability benefits can't work? People with "minor" disabilities on Social Security disability benefits? The Wall Street Journal has not been the same since Rupert Murdock took over.

5 comments:

  1. Obama at least knew that there is a discussion about SGA limits. That puts him ahead of most Presidents. But, what DIB is for and who receives it has never been well understood, as our previous comments regarding DIB advocates, Ticket to Work, and return to work issues shows. I really wish the Social Security Subcommittee would get ahold of this issue and shut everybody else up. Congress doesn't want to get into it with advocates, but in the meantime, people are lost in the process both of getting checks and then, leaving the rolls. Give me RSI benefits any day. DIB is a mess.

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  2. This goes back to the post a couple of weeks ago criticizing SSA for spending money to educate the public about personal savings and its programs -- especially the disability programs.

    Based on this item today, it's obvious that too many just don't get it -- even people who should know better, or at least have the capacity to do the necessary research before writing such nonsense.

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  3. In my opinion,people forget disability is based on sustaining work(not short term ability).This of course in my reasoning mind would have to consider the ability of person to work until retirement based on impairment.

    Any adjudicators care to weigh in?

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  4. Perhaps the reason people with these so-called "minor disabilities" are applying more often is that there really aren't jobs that they could do even if they were available. The workforce has changed dramatically over the past few decades, yet SSA's regulations are still generally based on labor statistics from the late 70's. The ones who do manage to get on who have potential to become employed again were they trained to do so are also are the ones who have the most difficult time getting on.

    In my opinion, SSA should update their standards for disability to reflect current reality, which might put more people on the rolls, but should also stress vocational rehabilitation more, and get some of these people education and training, which will not only improve their quality of life but also return them as productive members of the economy. It might also give some a means of support sooner so they can access medical rehabilitation.

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  5. Well, here we are again back at the old, old argument about voc rehab vs. permanent disability. Social Security DIB benefits as they now exist are an end point, not a beginning. Yes, as our blogger has pointed out we need a new revised and more realistic DOT. But, the notion that everyone can work with some sort of help doesn't fit the paradigm of a permanent income replacement program. The Sustained Gainful Employment concept does not include a month here or there at minimum wage or in sheltered work. It means no more work, period. It doesn't make sense to force the DIB program into a model it was not designed for. Remember the definition of disability. Those who have a potential to become employed shouldn't be allowed, by definition. There is a need for meaningful vocational rehabilitation programs, but I don't see how we make them fit into the DIB program. Make it separate and it could work.

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