Wednesday, August 20, 2014

Social Security Disability (SSDI) Broke : Unemployed Using SSDI for Compensation

Here is just another program that has collapsed due to a total failure to control it's basic function, those that need life changing help. The unemployed that are applying have a profound effect on who is actually now eligible for disability insurance. Millions are now using SSDI as an alternative when unemployment compensation runs out. 

Once the unemployment runs out they turn to SSDI to take up the slake required by those who can't or won't look for a job. SSDI is allowing this to happen. Why would they do this? Who made the decision in our government to allow this to happen?   hmmmmmm

But the biggest problem is that once the person is on SSDI, they are there for life.

Don't Give SSDI a Bailout
Source: Rachel Greszler, "Federal disability fund needs reform, not a bailout," Washington Times, August 18, 2014.

August 19, 2014

The Social Security Disability Insurance (SSDI) Trust Fund is set to go bankrupt in 2016. As a solution to this funding problem, some have suggested transferring funds from the Social Security Trust Fund and moving it into the Disability Fund. According to Rachel Greszler, senior policy analyst at the Heritage Foundation, this is not the answer.

According to Greszler, Social Security is even poorer than the Social Security Disability Fund. Its unfunded liability is 10 times larger, and by bailing out the disability program with Social Security Funds, SSDI will have little incentive to control its costs. Funds were reallocated to SSDI two decades ago, and the program only exploded in size after a 50 percent increase in tax revenue.
  • In 1990, 2.3 percent of working-age Americans were receiving disability benefits. Today, that figure is 5 percent.
  • SSDI spending has doubled in just 10 years.
All of this growth has come amidst health care improvements and technological advancements, says Greszler. Too many Americans have begun using the program to supplement long-term unemployment, and it has been proven highly susceptible to fraud. Until the program is reformed, more tax dollars should not be trusted to SSDI.
 

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