Archive for February, 2012
Notwithstanding the data just cited, several forces have either increased income inequality in the United States or given the appearance of such an increase, so it is best to be clear about these. Consider first that a rising proportion of the population is far above the poverty line. Read more
Since 1990, the number of people receiving disability payments from the SSA has more than tripled to over eight million—perhaps not surprising when you consider that the real value of the monthly benefits a person can collect has risen almost 60 percent in the past thirty-five years. The federal government now spends more on disability payments than on food stamps or unemployment benefits. What does this mean? Read more
It is also worth noting that some, perhaps many, of the departures from the labor force by low-skill individuals may actually be prompted by certain government programs. We refer here to a portion of the Social Security program that has expanded dramatically over the past 20 years. It involves disability payments.
Originally established in 1956 as a program to help individuals under age 65 who are truly disabled, Social Security Disability Insurance (SSDI) has become the federal government’s second fastest growing program (after Medicare). The real value of benefits has steadily risen as the Social Security Administration (SSA) gradually made it easier for individuals to meet the legal criteria for “disabled†status. Read more
There were even large numbers of students who left school to take high-paying jobs in the technology sector. The onset of the 2001 recession produced a turnaround in all of those statistics. The number of unemployed rose by about 2.5 million individuals. The number of part-time workers who indicated that they would like to work full-time rose by over a million. Read more
Certain individuals, after spending some time in the pool of the unemployed, may become discouraged about their future job prospects. They may leave the labor market to go back to school, to retire, to work full-time at home without pay, or just to take some time off. Whichever path they choose, when interviewers from the BLS ask these individuals whether they are “actively looking for a job,†they say no. Read more