Nearly a million filed for disability during the recession who otherwise wouldn’t have, study finds

Via Marketwatch

William H. Macy portrays a character falsely claiming disability on “Shameless.”

Nearly 1 million people filed for disability benefits they ordinarily wouldn’t have due to the recession, a new study finds.

Another 400,000 filed earlier for disability than trends would have suggested, the study finds.

The study puts into numbers what economists had long suspected, that during the Great Recession the ranks of those who claimed disability were artificially high.

Of those that filed that otherwise would not have, some 41.8% were awarded benefits, or more than 400,000 new beneficiaries to the Social Security Disability Insurance program.

These “induced applicants” had less severe impairments than the average applicant, and also were more likely to appeal an initial denial, the study found.

The study finds a $2.9 billion processing cost increase between 2008 and 2012 as a result of upturn, and a total Social Security and Medicare cost of over $97 billion. (Those who get SSDI are entitled to extra Medicare benefits.)

There are less direct costs as well: because working after program entry is rare, this corresponds to a near-permanent decline in productive capacity.

By the recession’s peak, the system was receiving 16.5% more applications than usual, the study finds. The trend in disability has reversed as the economy has improved, as well as due to a 2011 Social Security Administration initiative that started focused reviews and new training initiatives on allowance hearings.

Disability benefits last year were paid to 715,921 workers, who received an average monthly payment of $1,196.87, the government says. There was a 2010 peak of 1.03 million workers on disability.

The study, circulated by the National Bureau of Economic Research, was conducted by Nicole Maestas of Harvard Medial School, Kathleen Mullen of the Rand Corp. and Alexander Strand of the Social Security Administration. As a working paper, it has yet to be peer reviewed.

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38 Comments
BL
BL
December 10, 2018 3:59 pm

The government (and I use the term loosely) have made this mess, but be advised, if they start that BS that Social Security is running out of money and granny has to take a big haircut……it won’t be pretty. They better find the money to keep old folks going because we all remember when loosing 2 TRILLION into thin air at the Pentagon was no biggy. Yep, 2 TRILLION will keep granny and the old folks fed and cared for properly.

The days of just accepting the bullshit from DC is over.

Diogenes’ Dung
Diogenes’ Dung
  BL
December 10, 2018 5:11 pm

There used to be two places where one could find the financial data revealing what happened to the missing $2,000,000,000 (announced by Rumsfeld just before 9/11). They were stored in the part of the Pentagon that was hit by a missile on 9/11; and in WTC Building 7, which was imploded, intentionally, on 9/11.

No breadcrumbs left to follow, no crime.

The government won’t target Social Security directly – but you’re right, it’s gonna take a Huuuuge haircut after those despicable Russians hack Uncle Sam’s bank account.

Then we’ll have no choice except to bomb Granny’s monthly SS check out of the Kremlin’s greedy hands.

EL Cinico
EL Cinico
  BL
December 10, 2018 6:50 pm

That Pentagram money was put to good use, Bea. Why throw away good money on SS?

Iska Waran
Iska Waran
  EL Cinico
December 10, 2018 11:13 pm

Better yet, drone strike the nursing homes. A boon for weapons manufacturers and alleviates the Medicare insolvency.

22winmag - Unreconstructedsouthernerbygraceofgod
22winmag - Unreconstructedsouthernerbygraceofgod
  BL
December 10, 2018 8:31 pm

YES

The shooting starts when your dear old mom and dad get tossed out into the street with the trash.

Like many of the soldiers in Donbass say, there is little left to fight for except human dignity.

Dutchman
Dutchman
December 10, 2018 4:36 pm

There would have been soup lines – but Obama pulled this stunt: Hide the people in SSDI / SNAP / Section 8 / Assistance / Medicaid. He raised the national debt by $8,000,000,000,000 – Trillion dollars.

Never ever put a nigger in charge.

BL
BL
  Dutchman
December 10, 2018 6:15 pm

Dutchman- Don’t look now but Trump’s running up the debt worse than Barry. Not that I think the kneegrow was better but let’s be truthful. Also Dutchy, Trump has had near two years to shut off the freebies to these freeloaders and he has done absolutely NOTHING.

nkit
nkit
  BL
December 10, 2018 6:54 pm

(CNSNews.com) – The number of persons in households participating in the Supplemental Nutrition Assistance Program (SNAP)–also known as food stamps–has declined by 4,123,082 since December 2016, the month before Donald Trump was inaugurated president, according to newly released data from the U.S. Department of Agriculture.

It’s an improvement.

https://www.cnsnews.com/news/article/melanie-arter/number-people-food-stamps-down-41-million-trump-took-office

22winmag - Unreconstructedsouthernerbygraceofgod
22winmag - Unreconstructedsouthernerbygraceofgod
  BL
December 10, 2018 8:42 pm

TRUMP HAS DONE SOMETHING!

Platitudes and token gestures to keep the TRUMPTARDS happy for one more day!

Boat Guy
Boat Guy
December 10, 2018 4:37 pm

Industry collapsing , average working peoples wages losing ground daily with health care and retirement funding from private sector jobs evaporating this should be no surprise .
People 50 plus being forced into today’s work enviorment where $15 bucks per hour is as good as it gets . That does not cover a mortgage property taxes health insurence and saving for retirement and other insurence costs at any level . So what would you expect from desperate people in financially desperate times ! Remember they were not bailed out they were handed the bill for the bail out of people who do not deserve it !

gatsby1219
gatsby1219
December 10, 2018 5:07 pm

Just low life’s working the system.

Any word on the demographics ?

EL Coyote (EC)
EL Coyote (EC)
  gatsby1219
December 10, 2018 9:48 pm

Whiggers and niggers and beaners, oh my!

Iska Waran
Iska Waran
  gatsby1219
December 10, 2018 11:16 pm

Yes. Rapper Chief Keef, age 23, just revealed that he has four more previously unacknowledged kids, bringing the known total to nine. https://www.tmz.com/2018/12/09/chief-keef-reveals-four-mystery-kids-different-mothers-child-support/?adid=TMZ_Search_Results

Old Shoe
Old Shoe
December 10, 2018 6:29 pm

Guy across the street from me, a 50 year old former iron worker has been on a fake disability for about 12 years now. He has a bad back. It doesn’t keep him from mowing and rototilling his yard or doing brake jobs in his driveway for a few extra bucks under the table. But the best part is his wife got a job with the county about 5 years ago. Both of them sucking off the taxpayer’s teat. And they live better than we do. Nice, huh? Scamerica! It’s where we are!

22winmag - Unreconstructedsouthernerbygraceofgod
22winmag - Unreconstructedsouthernerbygraceofgod
  Old Shoe
December 10, 2018 8:40 pm

All his ill-gotten gains can be yours when the shit hits the fan and the grid goes down.

Steve in PA
Steve in PA
  Old Shoe
December 10, 2018 9:21 pm

A friend of my in-laws has been “disabled” since he was in his early 50’s. Not so disabled he can’t umpire Little League games for $. Since it is cash, I’m sure it isn’t reported.

EL Coyote (EC)
EL Coyote (EC)
  Steve in PA
December 10, 2018 9:47 pm

Eggsackly, Stevie. There are lots of folks of the white persuasion that are ripping off workers. But to hear KaD and Big Dummy, it’s the caravan raking in 90% of that disability money. Yeah, right.

Dennis
Dennis
  Old Shoe
December 10, 2018 9:47 pm

An expat I know here in Bangkok had 2 children with a Thai woman. He was 69 when he got married and due to his age and some quirk in SS law each child qualifies for a monthly SS payment of $750!

EL Coyote (EC)
EL Coyote (EC)
  Dennis
December 10, 2018 10:33 pm

Could you provide a reference? I have seen VA coverage for dependents when the vet is over a certain percentage disabled but I have not heard of SS paying dependents unless they are survivors of the deceased. This sounds like the mythical welfare queen of Reagan campaign lore.

TampaRed
TampaRed
  EL Coyote (EC)
December 10, 2018 11:17 pm

yipper,
the law used to be like that years ago so i doubt that it has been tightened–
a buddy of mine was the oldest child in a family where dad was in his late 30 s when he got married & had his 1st kid–2 more kids were spaced out over the next 10 or so years–
i can remember him being in shock because dad’s check included a payment for having a minor child–this would’ve been early 80’s or thereabouts–

Jc
Jc
  Dennis
December 11, 2018 1:26 am

A guy I know is doing the same thing in Northern Thailand. He fathered a child with a Burmese woman and his adult daughter back in the States told him about his minor child qualifying for SS until they are 19 or graduated high school. So he filed and reveives $800 monthly and fathered another child receiving an additional $500 or so.

Big Dick
Big Dick
December 10, 2018 6:44 pm

You forgot to add over 90% of them are either illegal immigrants or black already on welfare.

EL Cinico
EL Cinico
  Big Dick
December 10, 2018 6:54 pm

BD, you and KaD are a couple of dim bulbs. That’s the new story. Damn caravan isn’t even across the border yet and already they have sucked $2T out of welfare, SS and disability. Don’t blame you, don’t blame me, blame that illegal behind that tree.

MrLiberty
MrLiberty
December 10, 2018 7:37 pm

Leave a pile of money on the table, and the parasites will come and take it. It is the same with immigration and every other government-created problem in this country. “Free money” always attracts the worst, and attracts more than the lure of freedom and liberty ever will.

22winmag - Unreconstructedsouthernerbygraceofgod
22winmag - Unreconstructedsouthernerbygraceofgod
  MrLiberty
December 10, 2018 8:37 pm

Solution: glue your money to your table and beat anyone who touches it.

Overthecliff
Overthecliff
December 10, 2018 7:40 pm

The fault lies with RINO’S(democrats pretending to be conservatives) . They let Republicans in liberal districts give them cover for doing nothing to bring the budget under control. It makes no difference now it is to late. Only the Reset will pay the debt. It’s going to be really bad. I suspect the yellow vest riots will be mild comparatively .

22winmag - Unreconstructedsouthernerbygraceofgod
22winmag - Unreconstructedsouthernerbygraceofgod
  Overthecliff
December 10, 2018 8:36 pm

The TRUMP DOUBLECROSS… the moment the nominally-conservative masses realized just how badly they’ve been snowed by TRUMP, will damage the Republican party beyond repair and send many (hopefully not all) conservative heads spinning to such a degree that nobody will be safe from their wrath when they go “DFENS” and “FULL FALLING DOWN”.

EL Coyote (EC)
EL Coyote (EC)

Hey, maroon, he wasn’t a repuke or even a mainstream repuke. You queers voted for him precisely for that reason. You buttered your bed, now fuck off.

deplorably stanley
deplorably stanley
December 10, 2018 8:26 pm

I took the big step and went to the social security office last week to apply for MY MONEY.

I took a number and sat down among dozens of other people. Only one of them looked like somebody who was applying for retirement benefits, an older lady with grey hair.

The other dozens of people were not English speaking /or/ looked homeless /or/ acted crazy – These were not American retirees…..

So who the fuck are these people? And what are they doing in the Social Security office? Getting that gubmint check for being so cracked out they’re ‘disabled’? Those people have never paid a dime into social security. Foreigners? Did they spend the last 40 or 50 years having their paychecks docked by the SSA? I think not.

Why is our public retirement system paying a bunch of who-knows-what random people that aren’t American retirees??

EL Coyote (EC)
EL Coyote (EC)
  deplorably stanley
December 10, 2018 9:43 pm

Stop hyperventilating, Depends Stanley. You said you didn’t know anything about them. There were two old-timers there, you and the old biddy. The other people had private business there, as in nunya. I have to go someday to fix my birthdate info. I hope I don’t run into your ass, you might try to have me deported for whatever shit your imagination conjures up. You must be a lot of fun at the DMV also.

MrLiberty
MrLiberty
  deplorably stanley
December 11, 2018 12:45 pm

Sorry to burst your bubble, but it is NOT a public retirement system. It is a Ponzi scheme in which hundreds of billions have been STOLEN and handed to others, often in amounts well in excess of what was originally stolen from them. At some point, the money stopped simply being stolen to pay out to old people and was spent on everything else the government wastes money on. In place of all the money are IOU’s, backed by nothing more than the government’s ability to keep STEALING from everyone to cover the paper. I too have been stolen from, but the money was NOT put away for us. It was just stolen, like every other tax dollar, to be spent buying votes from corporate and other parasites and the elderly folks who were old enough to start making “claims” on money they have absolutely NO legal title to (clearly stated on the SS website). I’m not in any way saying you should not do what you can to get as much back from the thieves as you can. I just want to make it clear that the program was sold as a lie, marketed as a lie, and continues to be presented as a lie so that one generation will not feel so bad about the fact that all the money they happily encouraged their government to waste, was all the money they had actually been “contributing” (under duress of course) all their working lives, and that the money they are now getting, is just what is being STOLEN from the current working folks.

Eyas
Eyas
  MrLiberty
December 11, 2018 11:06 pm

Glad you said it and not me. I’ve tried before, and it seems a fairly simple thing to understand. However, there’s one group that always has immense trouble understanding it … those receiving, or about to begin receiving, S.S. retirement payouts. In a system as fu**ed up as ours, I’d have a tough time criticizing anyone who takes the money — even knowing that it’s theft. But false claims of justification through wilful blindness of the Ponzi scheme have always frustrated me.

KaD
KaD
December 10, 2018 8:37 pm

What are people supposed to do when there aren’t any jobs? I lost mine on August 19, 2009. I was making $43K a year in 2007, then the pay cuts came. I was down to $35K when I got shitcanned after saving a BILLION dollar client. Over the next two years I applied to Sears, Starbucks, JC Penney, in my field, everything I could think of to no avail. My UI ran out in a year and I spent another with NO income. There’s a little family restaurant outside Cleveland, I knew the lady that ran it. They put an ad in Craigslist for a part time dishwasher. The next morning NINE people were at the door begging for that job, one was from NASA and another an electrical engineer. She told me this herself. It traumatized her.

card802
card802
December 10, 2018 10:02 pm

NPR actually had a great piece on this (Unfit for work) during the obama mess, the issue was/is, there is no medical definition of disability, so find a sympathetic doc and you’re eligible to get on the dole.

Diogenes’ Dung
Diogenes’ Dung
  card802
December 11, 2018 4:13 am

Nuthin’ to it.

My 34 year-old daughter, after being rattled in two car accidents (both her fault) is receiving full social security disability because bumping her head left her “cognitively impaired”, according to sympathetic clinicians. The only downside is she can’t get a driver’s license . Another reason for her to sponge.

When I rib her for stealing the taxes I pay by playing the mental cripple, her defensive diatribe is articulate, on point, unwavering, and full of medical terminology I can hardly pronounce. She then denounces me with a volley of pejoratives that would make Dostoevsky run for cover.

General
General
December 10, 2018 11:00 pm

It used to do social security disability exams. 90% of the people applying for disability were faking it. I would estimate the 60-70% of people currently on disability aren’t disabled. It’s one giant scam.

Iska Waran
Iska Waran
December 10, 2018 11:27 pm

There’s a lot of crazy fuckers. That someone of them are on SSDI shouldn’t surprise anyone. Some of them even need it.

Ten Year Lurker
Ten Year Lurker
December 11, 2018 8:14 am

Get one thing straight people…..none of this nonsense…absolutely NONE OF IT changes until store shelves are on their way to empty with no hope of quick resupply. Until that happens talking about causes and solutions is little more than mental masturbation.