What do Finland, Hungary, Austria, Iceland and the Czech Republic have in common? The answer is that all of these countries spend a higher percentage of their gross domestic product on disability benefits than the United States does.
The Center on Budget and Policy Priorities separated disability pensions and other incapacity benefits, and took a look at how well 36 different countries funded disability benefits. It turns out that the United States finished 28th out of the 36 countries. The average funding for disability benefits of these countries was 1.7 percent spending of the gross domestic product in each country, but the United States spends less than 1.5 percent of its gross domestic product.
The CBPP indicated that:
Most other advanced countries spend more than the United States on disability benefits. U.S. eligibility rules are strict, and benefit levels are modest. The Organization for Economic Co-operation and Development (OECD) reports that the United States has some of the most stringent eligibility criteria for disability benefits among advanced economies. OECD statistics confirm that, as a corollary, the United States spends less on disability benefits (as a share of the economy) than most other advanced countries.
Note:
Incapacity benefits comprise public disability pensions, pensions for occupational injury and disease, publically paid sick leave, means-tested disability benefits, and other cash benefits. In the United States, “disability pensions” chiefly means Social Security disability Insurance; “incapacity benefits” include Disability Insurance, workers’ compensation, Supplemental Security Income, and paid sick leave for government employees.
The claim is often made that the United States spends too much money on Social Security disability benefits, but if the United States is measured worldwide with other countries, many people may come to the conclusion that the United States does not spend enough.
