Vivek Ramaswamy got himself in some hot water a couple of weeks ago when he tweeted about American culture. He’s wrong on the big picture, but his comments about American workers hits a nerve…
While the US Constitution and free market capitalism set the foundations for American prosperity, it took a rugged, passionate, free people to build it. From George Washington to George Washington Carver to millions of other Americans, the United States was carved out a continent of forests that seemed to go on forever, fertile plains, vast mountain ranges and scorching hot deserts. Over time American frontiersmen, settlers and entrepreneurs forged a country that seemed to have all of God’s blessings in abundance.
Conditions were rarely easy for most Americans throughout most of our history.
Coal miners spent 12 – 16 hour shifts in dangerous mines in which they
sometimes couldn’t even stand up. Frontiersmen built a homestead and a farm out
of a thick Appalachian forest while fighting brutal winters and a tenacious
Indian population. Slaves toiled for years at backbreaking work during freezing
winters and boiling summers. At the end of the 19th century over 50% of
Americans still lived and worked as farmers,
a far more dangerous job than most people understand. The industrial
revolution brought sweatshops and drove a thirst for steel, trains and
petroleum, industries that brought new dangers.
One sometimes has to marvel that the colonies survived long enough to coalesce
and challenge the British for independence and then go on to grow and prosper
(mostly) for over 200 years as it changed the world.
Were the Americans who carved a nation out of a continent somehow so different than Americans today? Were the Americans who crisscrossed a continent with railroads, telephone lines and highways so different than Americans today? Were the Americans who won two world wars and sent a man to the moon so different than Americans today? Were the Americans who invented the mechanical reaper, air conditioning, vulcanized rubber and the microchip so different than Americans today? Not based on DNA they weren’t. But that doesn’t mean they were the same. While the DNA of the American people today is no different than that of the people who invented the elevator or the light bulb, the American people writ large certainly appear to be.
Go back little more than one generation and it seems like Americans were
something of another species. Compared to 2025, they appear to be relative
supermen. In 1970 there were 79 million people working in the United
States supporting 1.5 million workers on Disability Insurance (SSDI). That means that one
person out of every 52 workers was on Disability… Fast forward 5 decades and it
seems as if the country has turned on its side. By 2024 the number of Americans
working had risen by 100% to 161 million
people. During that same period however, workers receiving disability
insurance skyrocketed up 380% to 7.2 million. Today,
instead of one out of every 53 workers being on disability, it’s one in 22!
That number is particularly interesting because the United States of 1970 was a
far grittier place than the United States of 2025.
First off, the United States in 2025 is a much
different workplace than the one that existed in 1970. In 1970 fully 25% of
the American workforce worked in manufacturing while 50% worked in the service
industry. Today, 8% of the American workforce works in manufacturing while over
70% of workers work in the service industry. Given that designing a website,
taking an order at Chili’s or greeting a guest at Marriott is generally less
dangerous than welding together various pieces of a Ford Ranger or operating a
blast furnace at a US Steel plant, America should be a safer place to work. And
indeed it is. The death rate for American workers in 1970 was 18
per every 100,000 workers. By 2023 that rate had dropped to 3.5, a decline of 80%.
But of course work is not the only place where one gets hurt. Today, virtually
everywhere Americans go everything seems safer. Cars have seatbelts, antilock
breaks and airbags. Houses have GFCI circuit breakers in bathrooms and kitchens
and smoke detectors in almost every room. Lawn darts are but a distant memory
and towns across the country require helmets for bicycle riding and virtually
every appliance and medicine comes plastered with book length warning label. At
the end of the day, America has become a far safer place to live and work than
it has been at any time in its history.
But somehow in that much safer America, the total of people listed as disabled
and receiving disability payments has skyrocketed: The
government spends more on disability than on food stamps and welfare combined. American workers paid .5%
of their paychecks for SSDI when it began 70 years ago, but in 2022 they paid
2%. That means that $2 out of every
$100 an American worker earns goes to support someone not working.
How is that even possible? Have Americans become weaklings, unable to stay
healthy? Has some unknown affliction made us incapable of working? No. There is
an affliction, but it’s not biological. It’s called the nanny state. From judges who rubberstamp virtually every claim they ever see
to a
quarter of applicants suffering from musculoskeletal injuries – which conveniently
enough cannot be detected by doctors – to outright
fraud (more)(more)(more)
and states
seeking to shift costs to the federal government, SSDI is a symbol of much
of what is wrong in America today, where in 2022 fully
4.5% of working age Americans were on disability. The worst thing about
this dysfunctional program is that the fraud keeps people who are in real need of help waiting in line,
sometimes to die.
When government decides to play the role of caretaker and redistribute wealth
from workers to everyone else, it should come as no surprise that many people
will choose to jump from the working pool to the everyone else pool. For more
proof just look at the food stamp program over the same 50 year period. While
the population has increased by about 75% since 1970, workers by 100% and
disability by 380%, food
stamp recipients grew by over 1,000%!
The economics of the welfare state, including the “disability
industrial complex” cannot be sustained. If the record of the last 50 years
were to be repeated over the next 50, in 2075 the country would have 320
million workers supporting almost 30 million people on disability and 450
million people on food stamps. Those numbers are simply unsustainable,
particularly if the goal is to Make America Great Again.
American workers and entrepreneurs have together created the greatest wealth
and prosperity the world has ever seen, but eventually the numbers stop
working. The thing I think Ramaswamy
misses is that it was inevitable that the spirit that helped forge a nation out
of a continent and dot it with jewels like the Empire State Building, the
Hoover Dam and the Golden Gate Bridge would reemerge and shrug. That’s what
happened in November. For it to make any difference however, the nanny state
will have to be eviscerated, and not just the regulatory part of it. The redistribution apparatus will have to be dismantled too,
and the disability industrial complex is a good place to start.
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