Jun 5, 2011

Astrue's Opponents On Children's Benefits Are "Old-Line Left Wingers" With "60s Mentality"

I missed this earlier. From the Boston Globe:
The era that launched a generation determined to change the world is now being blamed for resisting change — especially the kind that saves taxpayer money.
That’s the lens through which Michael J. Astrue, the commissioner of the Social Security Administration, views some critics. During a recent visit to The Globe to discuss flaws with the $10 billion children’s disability program, he addressed advocates who oppose what he considers necessary changes to an admirable, but flawed, program.
He described them, generally, as people “older’’ than he and went on to label such reform-resisters as “old-line left-wingers’’ with “a ’60s mentality.’’ Their opposition to change, he said, is “ideological and philosophical:’’ They believe in shifting economic and income distribution, he explained. As a result, some of those he sees as aging flower children look at people who might be abusing the system, and conclude, “These people are poor … it doesn’t really matter how they get the money,’’ he said.
I don't think you have to be an "old-line left-winger" (not that that's a bad thing) to think that the criticism of the SSI child's disability program is greatly overblown. Determining disability in anyone is inherently difficult and especially so in children. It's easy to take shots at the SSI children's program. It's vastly more difficult to propose improvements. I doubt that Astrue comprehends just how long and how  hard the folks he blithely characterizes as having a "60s mentality" worked to get us to the SSI children's system we have. The system we have now isn't perfect but it's a lot better than what preceded it. People such as Richard Weishaupt don't deserve to be dismissed like this any more than Michael Astrue deserves to be dismissed as a right-wing nutjob.

Jun 4, 2011

Are You Kidding Me?

Data Center Knowledge asks whether Social Security new data center will be strong enough to withstand a tornado. The answer is clearly NO but the scarier thing is that it may not be strong enough to stand up to even a minimal hurricane either. It's only designed for 90 mile per hour winds!  I don't think you are allowed to construct even an ordinary home that close to the coast in North Carolina, where I live, without building it to stand up to much more than 90 mile per hour winds.

Think that hurricanes don't hit as far North as Maryland? Tell that to the hundreds of people killed by the hurricane that hit New England in 1938 with winds of 160 miles per hour. Since 1980 Maryland has been hit by 55 cyclonic storms, including hurricanes! Hurricane Hazel, which is still vividly remembered in many places, including Toronto, Canada, pummeled Maryland with hurricane force winds in 1954.

Japan has just demonstrated the chaos that can happen when you don't plan for uncommon events hitting major infrastructure locations. What is Social Security thinking?

Jun 3, 2011

Testimony At Today's Congressional Hearing

Written testimony from today's hearing before the House Social Security Subcommittee on the recent report of the Social Security Trustees:
Charles P. Blahous, Research Fellow, Hoover Institution and Public Trustee for Social Security
The financial challenges facing Social Security should be addressed soon. If action is taken sooner rather than later, more options and more time will be available to phase in changes so that those affected have adequate time to prepare. Earlier action will also afford elected officials with a greater opportunity to minimize adverse impacts on vulnerable populations, including lower-income workers and those who are already substantially dependent on program benefits.

The fact that Social Security's financial viability is significantly affected by the strength of the overall economy in no way diminishes the undeniable fact that changes will have to made in currently scheduled benefits and payroll taxes if the program is to provide our children and grandchildren an adequate level of retirement security. The sooner we address this challenge, the less disruptive the changes will be. Those most adversely affected can be given the time they need to prepare, the burden can be more equitably shared across the generations, and the political animosity and public anxiety associated with the unavoidable changes can be moderated.
 The Republican does not make any recommendation on what to do while the Democrat says that the "undeniable fact" is that benefits will have to be cut as well as taxes raised, a statement which is undeniably false. The problem could easily be solved simply by lifting the cap on income covered by the FICA tax.

Jun 2, 2011

Can Social Security Improve Its Regulations?

From a notice posted by Social Security in the Federal Register:
On January 18, 2011, the President issued E.O. 13563, "Improving Regulation and Regulatory Review,'' which requires Federal agencies to develop a preliminary plan to
``periodically review its existing significant regulations" ...
We have posted the preliminary plan on our Open Government Web site, http://www.socialsecurity.gov/open/regsreview, and are now requesting public comments on the plan.
Social Security's "plan" is, essentially, to do nothing they were not already planning to do since they believe that their "regulations do not generally address economic competitiveness or job creation." In general, I agree with that but the Social Security Administration does regulate a billion dollar industry and I happen to be part of it -- representing Social Security claimants. Social Security's regulation of this group is pathetically haphazard and unpredictable. Take a look at Social Security's regulations on attorney fees. They are virtually non-existent. Social Security's operating manual on attorney fees contains absurdities. Those who represent Social Security claimants have a hard time figuring out what Social Security's policies are on fees for representing Social Security claimants. The agency seems incapable on comprehending that most attorneys are employed by entities called law firms and tries to pretend that they do not exist. Social Security's refusal to deal with these issues is causing me and others like me unnecessary headaches and money. This unnecessary burden could be lifted with intelligently crafted regulations.

You can comment on Social Security's "plan" by e-mailing: RegsReview@ssa.gov.

Jun 1, 2011

Rejected Disability Applicants Earn Less Before Applying

 From a press release issued by the University of Nebraska-Lincoln:
Male disability applicants rejected for federal benefits tend to have lower earnings and labor force participation rates over the decade prior to applying for federal disability benefits, a new study finds. 

Rejected applicants also work less despite being in better health than accepted applicants, according to the research led by economist Seth Giertz of the University of Nebraska-Lincoln.

On average, the study found, those rejected for benefits made 8.5 percent less than beneficiaries six years before applying – and nearly 22 percent less just prior to application. Also, applicants who were rejected left the workforce faster as their application dates approached than those who were approved for benefits.

The findings suggest that many of the rejections may have been because applicants were not entirely motivated by health reasons when seeking disability.
Another possible interpretation of this data is that rejected applicants suffer more from undiagnosed and untreated, perhaps untreatable, health problems, such as chronic psychiatric illness, including substance abuse, and mild to borderline mental retardation. These health problems are generally life-long and have made these applicants a marginal part of the labor force throughout their lives.

That is the problem with disability research. The data is real but the interpretations are often questionable and have more to do with the researchers' political and social views than anything else.

Obesity Takes Its Toll

From Obesity, Disability, and Movement Onto The Disability Rolls by Richard V. Burkhauser and John Cawley:
The magnitude of the impact of male obesity on work limitations is equivalent to the effect of aging 19.8 years or losing 8.9 years of education.

Little Support For Cutting Social Security

From the Kaiser Family Foundation:

About Time

Social Security is taking steps to move closer to online security standards used in the private sector -- allowing citizens to select a user name and password to access Social Security's online systems.