Deadweight Loss

Deadweight loss is the measure of cost of a loss of economic efficiency due to a market operating at non-equilibrium level. Vedder and Gallaway estimate that the marginal deadweight loss associated with social security taxation in the United States is $0.38 for every dollar distributed.[40, 41] We calculated deadweight loss associated with payments for SSI, Supplemental Nutrition Assistance Program, SSDI, and the Committee for Purchase from People who are Blind or Severely Disabled attributable to visual loss by multiplying visual loss-attributable transfer payments by 38% (Table 11.6).

Table 11.6. Deadweight Loss from Federal Transfer Payments

Deadweight Loss from Federal Transfer Payments