The Wall Street Journal has published an article on Monday that has debunked the myth that federal disability benefits are to blame for the shrinking labor force, a claim previously pushed by the paper itself, reports Hannah Groch-Begley of Media Matters for America.
Groch-Begley writes, “An April 29 Journal article headlined “Real Culprit Behind Smaller Workforce: Age” explained that the recent decrease in the labor force — the number of employed and unemployed Americans who are currently seeking work — ‘has more to do with retiring baby boomers than frustrated job seekers abandoning their searches.’ The article noted that claims that Americans are voluntarily leaving the workforce to receive Disability Insurance instead of working, for example, ‘may be exaggerated,’ and explained that retirees and students made up a far more significant portion of those leaving the labor force. The article included the following graph, showing disability was the least common reason for individuals leaving the workforce in March 2013:
“However, the Journal has previously pushed the myth that Disability Insurance accounted for much of the dropping labor force participation rate. An April 10 article headlined ‘Workers Stuck in Disability Stunt Economic Recovery’ claimed that workers receiving disability benefits were costing the economy billions by not instead participating in the labor force, and quoted economist Michael Feroli’s claim that ‘worker flight to the Social Security Disability Insurance program accounts for as much as a quarter of the puzzling drop in participation rates, a labor exodus with far-reaching economic consequences.’ These claims are in direct contradiction to the Journal’s most recent reporting.”
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