David Leonhart has a good column in the New York Times discussing how the economic recovery in the United States compares to that taking place in other countries. Other countries’ recovery tends to feature corporate profits that are still lagging but with much less unemployment. By contrast, here corporate profits have improved 12% over 2007 level but we remain mired in high unemployment.
There is a good argument to be made that critics of government policy are right – Obama and the Democrats have not been sufficiently focused on jobs; but it’s not because they’re unfriendly to business, but because they’re too friendly to corporate interests.
The gross domestic product here — the total value of all goods and services — has recovered from the recession better than in Britain, Germany, Japan or Russia. Yet a greatly shrunken group of American workers, working harder and more efficiently, is producing these goods and services.
The unemployment rate is higher in this country than in Britain or Russia and much higher than in Germany or Japan, according to a study of worldwide job markets that Gallup will release on Wednesday. The American jobless rate is also higher than China’s, Gallup found. The European countries with worse unemployment than the United States tend to be those still mired in crisis, like Greece, Ireland and Spain.
The column makes passing mention of the nation’s disability system. It’s one of those things in which I’ve taken an interest without doing much research. My knowledge of the Social Security Disability program comes from questioning debtors about their income and assets. A non-trivial number of them tell me they’re in the process of applying for disability. Obviously, I’m not privy to their medical records, but a fair number of these look able bodied and sound enough of mind to me. And the process takes an extremely long time. The backlog is measured in terms of years, I’m told. Leonhart has this to say:
Reforming the disability insurance system so it does not encourage long-term joblessness would help. “Once people enter the system,” as Mr. Katz of Harvard says, “they basically never come back.”
A disability check doesn’t mean riches, but it’s a steady check and, for a lot of folks, it beats working. The system needs to be quicker to discard the deadbeats, quicker to care for those clearly in need, and better at following up to determine if continued support is necessary. Whether that’s at all feasible, I don’t know.