I had no idea this sort of disability-gaming was occurring
a) I did think that people generally knew that disability claims go up during periods of economic dislocation.
b) I wouldn't call it 'gaming'. Toy example: Economy starts at equilibrium A where getting a job takes difficulty A. The economy slows down so now getting a job takes difficulty A + 10. It's obvious to state that the people who were at the margin, that could get a job at difficulty A but can't get a job a difficultly A + 10, will now be more likely to consider other options (including disability).
I'm sure there will be a bunch of comments to the effect that these people are malingerers but to me it's not black and white like that. IMO, it's unremarkable that a changed equilibrium is going to result in more disability claims.
Policywise, I think Minsky had some good ideas. The short form was limit transfer payments (i.e. payments where the recipient does nothing) and replace that with the government as employer of last resort.
a) I did think that people generally knew that disability claims go up during periods of economic dislocation.
b) I wouldn't call it 'gaming'. Toy example: Economy starts at equilibrium A where getting a job takes difficulty A. The economy slows down so now getting a job takes difficulty A + 10. It's obvious to state that the people who were at the margin, that could get a job at difficulty A but can't get a job a difficultly A + 10, will now be more likely to consider other options (including disability).
I'm sure there will be a bunch of comments to the effect that these people are malingerers but to me it's not black and white like that. IMO, it's unremarkable that a changed equilibrium is going to result in more disability claims.
Policywise, I think Minsky had some good ideas. The short form was limit transfer payments (i.e. payments where the recipient does nothing) and replace that with the government as employer of last resort.