Monday, May 2, 2011

New entitlement problem: disability insurance

From the Economist:
America has a smaller fraction of prime-age men in work and in the labour force than any other G7 economy. Some 25% of men aged 25-54 with no college degree, 35% of high-school dropouts and almost 70% of black high-school dropouts are not working (see article). 
Beyond the toll to individuals, the lack of work among less-skilled men could have huge fiscal and social consequences. The cost of disability payments is some $120 billion (almost 1% of GDP) and rising fast. Male worklessness has been linked with lower marriage rates and weakening family bonds.

1 comment:

  1. Very interesting! I've seen quite a few statistics on the increasing Disabled population in America, but have not seen many comparisons to the rest of the world. Charts like this really remind me of a lesson I've learned the hard way recently: though we always think about insuring our material goods, in times of good health we overlook the most important asset we have - our income. In the blink of an eye, our ability to work could be pulled out from under us, and with it our income. The only real way to protect yourself and your lifestyle is by looking into Disability Insurance for being prepared for the unexpected, you can ease the financial burden brought about by a life-changing diagnosis. And believe me - when you're hit with a disability, the last thing you need is more stress to worry about.