The New York Post reported over the weekend that Social Security disability claims have surged recently. People apply after running out of unemployment benefits, many for mental illness. Unfortunately, this is good news for Obama, as these people are no longer counted as unemployed. It’s bad news for the country, since this trend will bankrupt Social Security faster.
Standing too many months on the unemployment line is driving Americans crazy — literally — and it’s costing taxpayers hundreds of billions of dollars.
With their unemployment-insurance checks running out, some of the country’s long-term jobless are scrambling to fill the gap by filing claims for mental illness and other disabilities with Social Security — a surge that hobbles taxpayers and making the employment rate look healthier than it should as these people drop out of the job statistics.
“It could be because their health really is getting worse from the stress of being out of work,” says Matthew Rutledge, a research economist at Boston College. “Or it could just be desperation — people trying to make ends meet when other safety nets just aren’t there.”
As of January, the federal government was mailing out disability checks to more than 10.5 million individuals, including 2 million to spouses and children of disabled workers, at a cost of record $200 billion a year, recent research from JPMorgan Chase shows.
The sputtering economy has fueled those ranks. Around 5.3 percent of the population between the ages of 25 and 64 is currently collecting federal disability payments, a jump from 4.5 percent since the economy slid into a recession.
Mental-illness claims, in particular, are surging. (Read More)
So Obama can add “literally driving people crazy” to his rotten record.