Home
/
RELIGION & LIBERTY ONLINE
/
The Hidden Welfare Program for the Low-Skilled and Uneducated
The Hidden Welfare Program for the Low-Skilled and Uneducated
Apr 20, 2025 11:36 PM

There are 14 million Americans who are out of work yet don’t show up in the monthly unemployment statistics. The federal government spends more money each year on cash payments for this group than it spends on food stamps and bined. They are part of the hidden social safety net. They are the disabled former workers.

NPR’s Planet Money has produced a fascinating report on the growth of federal disability programs and what disability means for American workers. Here are some of the highlights.

Whether you’re disabled often depends on your education level and what types of work you can do:

“We talk about the pain and what it’s like,” he says. “I always ask them, ‘What grade did you finish?'”

What grade did you finish, of course, is not really a medical question. But Dr. Timberlake believes he needs this information in disability cases because people who have only a high school education aren’t going to be able to get a sit-down job.

Dr. Timberlake is making a judgment call that if you have a particular back problem and a college degree, you’re not disabled. Without the degree, you are.

Determining who is disabled isn’t a clear cut process:

As far as the federal government is concerned, you’re disabled if you have a medical condition that makes it impossible to work. In practice, it’s a judgment call made in doctors’ offices and courtrooms around the country. The health problems where there is most latitude for judgment — back pain, mental illness — are among the fastest growing causes of disability.

Disability has e a de facto welfare program for people without a lot of education or job skills:

There used to be a lot of jobs that you could do with just a high school degree, and that paid enough to be considered middle class. I knew, of course, that those have been disappearing for decades. What surprised me was what has been happening to many of the people who lost those jobs: They’ve been going on disability.

[. . .]

If there’d been a mill for Scott to go back to work in, he says, he’d have done that too. But there wasn’t a mill, so he went on disability. It wasn’t just Scott. I talked to a bunch of mill guys who took this path — one who shattered the bones in his ankle and leg, one with diabetes, another with a heart attack. When the mill shut down, they all went on disability.

Even kids can get disability and, as with the adults, their families don’t want to stop getting the check from the government:

Let’s imagine that happens. Jahleel starts doing better in school, es some of his disabilities. He doesn’t need the disability program anymore. That would seem to be great for everyone, except for one thing: It would threaten his family’s livelihood. Jahleel’s family primarily survives off the monthly $700 check they get for his disability.

Jahleel’s mom wants him to do well in school. That is absolutely clear. But her livelihood depends on Jahleel struggling in school. This tension only increases as kids get older. One mother told me her teenage son wanted to work, but she didn’t want him to get a job because if he did, the family would lose its disability check.

The Clinton-era welfare reforms may have shifted people from welfare to disability:

Part of Clinton’s welfare reform plan pushed states to get people on welfare into jobs, partly by making states pay a much larger share of welfare costs. The incentive seemed to work; the welfare rolls shrank. But not everyone who left welfare went to work.

States pay consultants to help them find people to shift from welfare to disability:

A person on welfare costs a state money. That same resident on disability doesn’t cost the state a cent, because the federal government covers the entire bill for people on disability. So states can save money by shifting people from welfare to disability. And the Public Consulting Group is glad to help.

PCG is a pany that states pay b their welfare rolls and move as many people as possible onto disability. “What we’re offering is to work to identify those folks who have the highest likelihood of meeting disability criteria,” Pat Coakley, who runs PCG’s Social Security Advocacy Management team, told me.

Disability programs are very expensive:

. . . federal disability programs became our extremely expensive default plan. The two big disability programs, including health care for disabled workers, cost some $260 billion a year.

People at the Social Security Administration, which runs the federal disability programs, say we cannot afford this. The reserves in the disability insurance program are on track to run out in 2016, Steve Goss, the chief actuary at Social Security, told me.

You’ll want to read the rest of NPR’s riveting—and depressing—report.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
How Are Jobs Created?
Trump promises he’ll be “the greatest jobs president that God ever created.” And Sanders says he’d spend $18 billion to create jobs. But can the president actually create jobs? And if so, do we want the government to do so? In this brief video, economist Don Boudreaux discusses what happens when the government takes tax money from some businesses to create jobs in others. ...
What motivated ‘leave’ voters in Brexit?
In the wake of the British vote to leave the European Union, many are wondering what led the majority of voters to affirm the Brexit. In mentary Brexit: Against the Political Class, Samuel Gregg points out mon element in all of the motivations behind the “Leave” decision: a frustration with established career politicians. Gregg writes: The reasons why a majority of British voters decided that their nation was better off outside the European Union were many and not always in...
Occupational licensing, cronyism, and their effect on the poor
“The free market is the greatest producer of wealth in history — it has lifted billions of people out of poverty.” – President Barack Obama at a panel discussion on poverty in May 2015. The United States ranks as the 11th most economically free country in the world according to the Heritage Freedom Index, and has a history of embracing free-markets yet the rate of poverty still stands at a poignant 14.8 percent. Why is this the case? While the...
Investing prudently and morally
David Bahnsen explains “value investing” at Acton University. How should your views on morality affect your investment strategy? David Bahnsen, Chief Investment Officer at The Bahnsen Group, argues in an Acton University presentation titled “Value Investing” that the question is a plex one. He begins by outlining the purpose of investment consistent with its definition: to make a profit. Without growth, there is no investing. Similarly, there is no such thing as a risk free investment. Biblical investment is therefore...
Brexit Aftermath: Commentary from Huizinga and Gregg
With Great Britain’s stunning decision to leave the European Union, media outlets have been looking mentary to explain the motivations for the move and the likely consequences, and Acton’s experts have risen to the challenge. Acton’sDirector of International Outreach Todd Huizinga – author ofThe New Totalitarian Temptation, which provides a great deal of insight and background on the European Union – joined BuisnessWeek contributor Eric Schiffer onNewsmax Primeon Friday evening to discuss the vote and its aftermath, and Director of...
Profile of an Acton University attendee: Fr. Benjamin Fiiriter
Father Benjamin Fiiriter traveled over 20 hours from Ghana to attend Acton University earlier this month. He works in the Diocese of Wa in various capacities at the Finance Office, Estates Office and Procuration, Pontifical Mission Societies and the General Correspondence of the Bishop and the Curia. In his extensive work with Church documents, he felt a formal “academic and spiritual refresher” was necessary. He was not disappointed. Among his favorite courses were Christian Anthropology, which has a “wide and...
Daniel Hannan on the Conservative Case for Brexit
In the hubbub surrounding Brexit, many conservatives have cheered the United Kingdom’s vote to leave the European Union, hailing it as a win for freedom, democracy, and local sovereignty. Yet forthosewho disagree, support for Brexit is painted as necessarily driven by fear, xenophobia, and protectionism.Although fear of immigrants and narrow nationalism have surelyplayed their part, such sentiments and attitudes aren’t the only driversat play, and they mustn’t be heeded if Brexitis actually going to succeed. Indeed, for conservatives in the...
Video: Vernon Smith on Faith and the Compatibility of Science and Religion
Acton University is a unique conference, a fact noted by Nobel Economics Laureate Vernon L. Smith, who used his appearance on Wednesday, June 15 as an opportunity to “speak on a topic that my fellow economists would never have asked me to speak on”: religious faith and patibility with modern science. We’re pleased to present Smith’s lecture below. ...
Brexit reflects desire for democracy
In a piece published at The Catholic World Report, Samuel Gregg maps out the EU’s origins and decline and Britain’s consequential cry to leave its grasp. Gregg explains that although British voters chose to vote for Brexit for various reasons, “It’s hard, however, to deny that the EU’s top-down approach to public life, its stealth supplanting of national laws, and, perhaps above all, the sheer arrogance of its political-bureaucratic leadership played a major role in causing 52 percent of British...
Should ideas be considered property?
The industrial revolution did not begin in the eighteenth century, but was a gradual process of prised of the individual actions of thousands of innovators across time. The dramatic changes in the world e about partially due to the technological growth, some of which developed out of this revolution of industry. It is not the result of a few “great, singular men”, but of many interconnected individual innovations. Jeffrey Tucker, Director of Content at FEE (Foundation for Economic Education) painted...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved