Most economists seem to get things wrong these days. All of the bad economic news is always unexpected. Well, there’s one who isn’t wearing rose colored glasses, and he’s predicting that the Social Security Disability Insurance system is going to implode by 2016.
One of the major problems facing the Social Security system is its Disability Insurance Fund (SSDI), says Stanford University economist Michael Boskin.
It’s “the ticking time bomb of entitlement reform,” he writes in The Wall Street Journal. “According to the Social Security trustees, the bomb is due to go off — when the fund, running out of money, will need to make steep cuts in benefits — just in time for the 2016 election”
The number of beneficiaries in the disability insurance program has skyrocketed to almost 11 million in June from 2.7 million in 1970, Boskin notes, at a cost of $140 billion last year, up eight times, adjusted for inflation, from 1970. (Read More)
Well, now that anyone who wants SSDI can get it if they’re convincing enough. So this isn’t at all unexpected. But of course it will be to those so-called experts running all of these Ponzi schemes. Where do they think people go after they run out of unemployment and drop out of the labor market?