Question

Senator Doppleganger has proposed rules that will makee it easier for workers to apply for and recieve disability benefits. What is this likely to do to rates of application for disability benefits? To the reported unemployment rate?

Answer 1

The Social Security and Supplemental Security Income disability programs provide assistance to people with disabilities.

If it makes it easier for workers to apply for and recieve disability benefits, it will result in higher rates of application for disability benefits. Workers who earlier were dissuaded by the process of applying, though they wanted to apply, will now be eager and more willing to apply. Hence, the application rates will increase.

It will also decrease the reported unemployment rate because many disabled people who were earlier not able to get disability benefit were getting unemployment benefits. Now that they can get disability benefit, they will rather take those. This will reduce the number of people taking unemployment benefits and hence, reduce the unemployment rate too.