Is Social Security Regressive

For Social Security

     Eduardo Porter writes in the Economix column at the New York Times that this chart shows that Social Security is regressive, that instead of helping poor people it hurts them because wealthier people live longer. The problem with Porter's argument is that he's basing it on race-ethnicity. The average age of whites is 41, African-Americans 30 and Hispanics is 27. What this chart does show is that the Republican party, which has become the de facto "white people's party", isn't likely to support changes that would cut Social Security. Only in theory and then they have to refer to "entitlements" rather than Social Security. People tend to think that "entitlements" are government benefits that go to someone else. They know that Social Security goes to everybody.

Senate Hearing Postponed Due To Coburn Cancer

     From the Huntington, WV Herald-Dispatch:

Oklahoma Sen. Tom Coburn has had a recurrence of prostate cancer and is undergoing further evaluation and treatment, according to spokesmen for the conservative Republican.

Spokesman John Hart said in a brief statement to The Associated Press that the 65-year-old lawmaker will be out for the rest of the week but will be back "as soon as he's able, hopefully next week."

This week's treatments, in Oklahoma, forced postponement of another hearing as to findings of a two-year probe into alleged abuses in how Social Security disability benefits were approved at Huntington's federal Office of Disability Adjudication and Review, said spokesman Aaron Fobes to The Herald-Dispatch.

There Goes The Old Profit Margin

     John Uptain, an Alabama non-attorney who wants to represent Social Security disability claimants, is offering his services for 20% of the claimants past due benefits instead of the usual 25%. Uptain had previously worked for Social Security for 25 years. He attributes his ability to offer reduced fees to low overhead and not having to pay off student loans.

     Over the years I have often talked with Social Security employees who had serious misconceptions about the realities of representing Social Security disability claimants, particularly about the expenses involved in obtaining clients. You can operate out of your house with zero overhead expenses but you're still not going to make any money until you get a client. You don't get many Social Security disability clients just by networking. Anything beyond networking is expensive. People like discounts but they also wonder if you're for real if you're offering a cut rate price and you're operating out of your home. Shade tree mechanics work cheap but would you trust your car to one you didn't know?

A Blogger Writes About His Father's Experience With Social Security Disability

Jack Nicholson in One Flew Over The Cuckoo's Nest

 

     A blogger writes about his experience when helping his severely depressed father apply for Social Security disability benefits. He was surprised to find that "We could actually get people on the phone when we called, and when we arrived, we didn't have to wait long to be set up with a caseworker, who was respectful, and very businesslike about it." The blogger was pleasantly surprised to find that the disability claim was quickly approved. 

     I'm happy for this blogger. I wish prompt approval was the norm for people suffering from severe depression but it isn't. At any given time I almost always have a client who Social Security disability claim has been denied even though is undergoing or has undergone Electroconvulsive Therapy (ECT) for profound depression. (I don't think that the blogger's father had ECT). You thought that ECT went away after One Flew Over The Cuckoo's Nest? You are younger and have never heard of ECT or One Flew Over The Cuckoo's Nest? Trust me. In extreme cases, doctors hook up electrodes to a person's head and run electric current through their brain in a desperate attempt to alleviate their depression. Sounds gruesome but fifty years ago it was a common treatment for many types of mental illness. Today it's still used but only for extreme cases of depression that don't respond to other treatments. It's now done under anesthesia. It's hardly a cure-all. I don't think I have to tell readers that there are potential side effects. Wouldn't you think that individuals who consent to go through this sort of thing have to be desperate for relief?  Nevertheless, Social Security still denies their disability claims.

What's The Matter, Kansas? You Got What You Voted For

     The residents of Pittsburg, Kansas are up in arms that they're losing their local Social Security field office. Social Security management explains to them that they have to close offices because of lack of funding. Pittsburgers complain that they weren't consulted. Social Security management doesn't give the obvious answer so I'll give it. Kansas is a solidly Republican state, giving 60% of its vote to Romney over Obama and electing only Republicans to Congress. You were consulted on this and other cuts you don't like, Pittsburg, and you voted for them, so shut up.

Social Security Paid Dead People!

     Social Security paid out 0.006% of benefits to dead people. Does that sound like a big deal?

User Fee Capped At $89 In 2014

     The user fee cap will be $89 in 2014. This is the limit on the amount that Social Security can charge attorneys and some others for withholding their fee from and the past due benefits of clients that have represented before the Social Security Administration. It's the amount charged in most cases. It's a simple one-quarter computation. By contrast, payroll companies charge $.80 to $2.00 to perform the far more complicated calculations needed to issue a payroll check.

It's Tough To Get On SSI Child's Benefits

     The Philadelphia Inquirer has an article on the Supplemental Security Income (SSI) child's benefit program. Despite what you've heard, it's tough to get on benefits. How tough? So tough that most Social Security attorneys refuse to take on any SSI child case.

"You Can't Change The Rules"

     Older Americans really, really don't like the idea of changing Social Security. However, removing the cap on wages covered by the F.I.C.A. tax does appeal to them.

"I contributed to it. It's my money," said Joan McDonald, 65, of Annapolis, Md., who retired as an accountant this year and began collecting Social Security. "The plan was, 'Contribute this and you get this.' You can't change the rules."

Is Raising Social Security Benefits An Idea That Has Entered The Political Mainstream?

     The Pacific Standard reports on Duncan Black, who blogs under the name Atrios. According to the Pacific Standard, Atrios has introduced into the political marketplace the startling notion of increasing Social Security benefits.

     For obvious reasons, I like to think that bloggers can make a difference. However, I'm not sure that the notion of increasing Social Security benefits was ever a completely unknown idea or that Atrios has moved that idea closer to becoming reality. Over the years I've often heard those on the left saying that Social Security benefits should be increased, not cut. Those views were on the periphery. I'd say they remain on the periphery. Time will tell whether this idea really moves into the mainstream. 

     My gut feeling is that Atrios is simply responding to the larger theme that long term demographic trends strongly favor the Democratic party and liberal policies in general. If events unfold as this theory holds, the Republican party, as currently constituted, would lose almost all of its power over the next ten to fifteen years. Would Social Security be increased if this comes to pass? Maybe. It's just too far off to tell.