Hey WSJ, don’t blame unemployed disabled people for the crap economy
This morning I’m being driven crazy by this article in yesterday’s Wall Street Journal entitled “Workers Stuck in Disability Stunt Economic Recovery.”
Even the title makes the underlying goal of the article crystal clear: the lazy disabled workers are to blame for the crap economy. Lest you are unconvinced that anyone could make such an unreasonable claim of causation, here’s a tasty excerpt from the article that spells it out:
Economic growth is driven by the number of workers in an economy and by their productivity. Put simply, fewer workers usually means less growth.
Since the recession, more people have gone on disability, on net, than new workers have joined the labor force. Mr. Feroli estimated the exodus to disability costs 0.6% of national output, equal to about $95 billion a year.
“The greater cost is their long-term dependency on transfers from the federal government,” Mr. Autor said, “placing strain on the soon-to-be exhausted Social Security Disability trust fund.”
The underlying model here, then, is that there’s a bunch of people who have the choice between going on disability or “joining the labor force” and they’ve all chosen to go on disability. I wonder where their evidence is that people really have that choice, considering the unemployment numbers and participation rate numbers we see nowadays.
For example, the unemployment rate for youths is now 22.9%, and the participation rate for them has gone from 59.2% in December 2007, to 54.5% today. This is probably not because so many kids under the age of 25 are disabled, I suspect. If you look at the overall labor participation rate, it’s dropped from 66.0 in December 2007 to 63.3 in March 2013. Most of the people who have left the work force are also not disabled. They’ve been discouraged for some other mysterious reason. I’m gonna go ahead and guess it’s because they can’t find a job.
Here’s another example from the article of a seriously fucked-up understanding of cause and effect:
With overall participation down, the labor force—a measure of people working and people looking for work—is barely growing.
They consistently paint the picture whereby people decide to stop working, and then yucky things happen, in this case the labor force stops growing. Damn those lazy people.
They even bring in a fancy word from physics to describe the problem, namely hysteresis. Now, they didn’t understand or correctly define the term, but it doesn’t really matter, because the point of using a fancy term from physics was not to add to the clarity of the argument but rather to impress.
The goal here is, in fact, that if enough economists use sophisticated language to describe the various effects, we will all be able to blame people with bad backs, making $13.6K per year, on why our economy sucks, rather than the rich assholes in finance who got us into this mess and are currently buying $2 million dollar personal offices instead of going to jail.
Just to be clear, that’s $1,130 a month, which I guess represents so enticing a lifestyle that the people currently enjoying it ‘are “pretty unlikely to want to forfeit economic security for a precarious job market”‘ according to M.I.T. economist David Autor. I’d love to have David Autor spell out, for us, exactly what’s economically secure about that kind of monthly check.
The rest of the article is in large part a description of how people get onto SSDI, insinuating that the people currently on it are not really all that disabled or worthy of living high on the hog, and are in any case never ever leaving.
How’s this for a slightly different take on the situation: there are of course some people who are faking something, that’s always the case. But in general, the people on SSDI need to be there, and before the recession might have had the kind of employers who kept them on even though they often called in sick, out of loyalty and kindness, because they didn’t want to fire them. But when the recession struck those employers had to cut them off, or they went out of business completely. Now those people can’t find work and don’t have many options. In other words, the recession caused the SSDI program to grow. That doesn’t mean it caused a bunch of people to get sick, but it does mean that sick people are more dependent on SSDI because there are fewer options.
By the way, read the comments of this article, there are some really good ones (“What were people with injuries and no high-value job skills to do? Is the number of people in the social security disability program the problem or the symptom?”) as well as some really outrageous ones (‘The current situation makes the picture of the “Welfare Queen” of the 1980s look like an honest citizen’).