Why do people seem shocked to find out that if you give people incentives not to work, many of them are going to take advantage of that if they can get away with it?
This American Life has an episode this week about the explosive growth of the $200-billion-a-year federal disability program, but the reporter and host seem shocked that people could be doing what the system gives them incentives to do. Even after an hour of reporting — in which there was discussion of poverty, job prospects and more — there wasn’t any mention of the simple economic fact that people do what they have incentives to do.
This episode is reported by NPR’s Planet Money, and the reporter seems to be going out of her way to come up with as many semi-legitimate excuses for the problem as possible. Overall, she sounds like a progressive liberal who’s confronted with evidence that a progressive government program doesn’t work — and she’s trying to avoid offending other progressives by pointing that out.
(Other progressive are offended, though. The left-wing organization Media Matters for America has blasted back at the allegedly “error-riddled story.”)
The piece goes to great lengths at times to attempt to explain away the problem as a simple matter of poor people turning to the disability program because they have no other choices. What the reporter doesn’t seem to understand is that people react to incentives. If they’re going to starve or be homeless in the place where they are (with the skills they have), people tend to find a way to do something about it — whether that entails migrating or learning something new.

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