As disability claims skyrocket, the Social Security Administration is saying they’ll run out of money by 2016, making some people wonder why.
As previously reported by The Inquisitr, a record setting 8.8 million Americans are receiving social security disability benefits. The data also revealed the Social Security administration paid out over $773 billion in benefits after receiving only $725 billion, leaving a deficit of nearly $48 billion. The average monthly disability checks is around $1,100, which is about equivalent to working a minimum wage job.
Social Security Administration says disability claims are skyrocketing since 2003, with a a 29 percent jump in Americans with little or no work experience getting disability payments. The SSA also reports a 44 percent increase in disability claims by people formerly in the workplace.
Including everything, in 2011 the Federal government’s social security program paid out disability claims for nearly $250 billion to more than 23 million Americans, which is about seven percent of the overall population and 16 percent of the US workforce. These numbers do not include the millions in worker’s compensation claims being paid out through private disability insurance.
The fact that disability claims are skyrocketing is causing the Social Security Administration to estimate they will run out disability money by 2016. To give you an idea how badly things have accelerated, back in December of 2012, which is not too long ago, the SSA was estimating they’d run out of money for everything by 2033, but that estimate has moved up by several years. This reality will force politicians to cut Social Security benefits and raise taxes. This is what President Obama suggests with his new budget that also increases spending and creates $1 trillion in new taxes, which is about seven percent of the entire economy.
Andrew Houtenville, an economics professor at the University of New Hampshire’s Institute on Disability, says the skyrocketing disability claims can be blamed on the economy:
“With every recession, we see a rise in the number of applicants. People are looking for options in terms of income support.”
As disability claims skyrocket, what do you think should be done?