John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Massachusetts’ counties, Franklin County saw the largest increase in transfer dependency over the past 10 years, surging 4.2% from 23.2% in 2012 to 27.4% in 2022, and up 16.7% from just 10.7% in 1970. In dollar terms, government transfers per capita in Franklin County jumped from $12,411 in 2012 to $17,228 in 2022, a stark contrast to the $2,410 recorded in 1970.
Hampshire County followed with the second-largest increase in transfer dependency, increasing 3.2% from 14.5% in 2012 to 17.7% in 2022, and an overall increase of 10.5% from 1970’s 7.2% transfer dependency. This trend is reflected in per capita amounts, with residents of Hampshire County receiving an average of $10,563 in transfer income in 2022, up from $7,732 in 2012 and more than double the $2,410 recorded in 1970.
Additionally, Hampden County had the highest percentage of income derived from government transfers, at 31% in 2022, making it the county with the highest overall transfer dependency. Franklin County and Berkshire County followed closely behind, with transfer dependency rates of 27.4% and 26.5% in 2022, respectively.
Compared to 1970, Hampden County increased by 20.4%, while Franklin County and Berkshire County have increased by 16.7% and 15.9%, respectively, showing sustained reliance on government transfers. Residents in Hampden County received an average of $18,711 in transfers per capita, with Franklin County and Berkshire County close behind at $17,228 and $17,171, respectively.
For comparison, the statewide average was 14.9% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $12,629 per resident in 2022, compared to $11,542 nationwide.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In Massachusetts, reliance on government transfers was just 9.3% (or $2,495 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 14.9% (or $12,629 per capita) in 2022, reflecting a total increase of 5.6% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Massachusetts included:
- Social Security: $3,620 (28.7% of total transfers)
- Medicare: $3,028 (24% of total transfers)
- Medicaid: $3,175 (25.1% of total transfers)
- Income Maintenance Programs: $1,946 (15.4% of total transfers)
With 18% of the population aged 65 and older, Massachusetts has a significant demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Massachusetts, reliance on government transfers has similarly increased from 9.3% (or $2,495 per capita) in 1970 to 14.9% (or $12,629 per capita) in 2022.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Barnstable County | 19.2% | -0.1% | 7.9% | $16,390 | $3,303 | $13,215 |
| Berkshire County | 26.5% | 2.3% | 15.9% | $17,171 | $4,003 | $14,613 |
| Bristol County | 22.2% | 0.1% | 10.8% | $14,216 | $2,534 | $11,635 |
| Dukes County | 13.6% | 2% | 2.5% | $11,939 | $2,888 | $8,712 |
| Essex County | 16.2% | 0.7% | 6.5% | $12,701 | $2,389 | $10,173 |
| Franklin County | 27.4% | 4.2% | 16.7% | $17,228 | $4,817 | $14,818 |
| Hampden County | 31% | 3.1% | 20.4% | $18,711 | $4,200 | $16,142 |
| Hampshire County | 17.7% | 3.2% | 10.5% | $10,563 | $2,831 | $8,952 |
| Middlesex County | 9.6% | -0.3% | 2.4% | $9,757 | $1,795 | $7,650 |
| Nantucket County | 7.4% | 0.8% | -2% | $7,625 | $1,033 | $4,489 |
| Norfolk County | 9.1% | -0.3% | 3% | $9,915 | $1,764 | $7,997 |
| Plymouth County | 16.2% | 0.6% | 7.4% | $12,962 | $2,893 | $10,842 |
| Suffolk County | 15.6% | -0.4% | 1.3% | $15,158 | $2,891 | $11,201 |
| Worcester County | 18.3% | 1.5% | 8.6% | $11,881 | $2,233 | $9,578 |
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