Labels and Not on Cans

[LAKnows]

My career is in the disability sector, and I constantly wonder why labeling is okay. Generally, it's for funding purposes, and I understand that concept. However, frequently I hear people say "Oh, she is autistic," or "that handicapped kid," or "my dyslexic daughter," which is labeling. What is the purpose to talk about what is wrong with someone instead of referring to the person with a disability as something other than who they are (i.e. my friend, daughter, etc.)? In our modern times, I would think we would have changed how we refer to a person with a disability, but it hasn't changed. Unfortunately, society still believes an institution is the best place for a person with a disability, and I just have to ask why. What makes a person think labeling and/or institutions are generally okay?