John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Maryland’s counties, Allegany County saw the largest increase in transfer dependency over the past 10 years, surging 5.7% from 31.9% in 2012 to 37.6% in 2022, and up 25.5% from just 12.1% in 1970. In dollar terms, government transfers per capita in Allegany County jumped from $12,845 in 2012 to $17,387 in 2022, a stark contrast to the $2,444 recorded in 1970.
Somerset County followed with the second-largest increase in transfer dependency, increasing 4.9% from 32.9% in 2012 to 37.8% in 2022, and an overall increase of 23.9% from 1970’s 13.9% transfer dependency. This trend is reflected in per capita amounts, with residents of Somerset County receiving an average of $14,555 in transfer income in 2022, up from $10,579 in 2012 and more than double the $2,444 recorded in 1970.
Additionally, Somerset County had the highest percentage of income derived from government transfers, at 37.8% in 2022, making it the county with the highest overall transfer dependency. Allegany County and Baltimore (Independent City) County followed closely behind, with transfer dependency rates of 37.6% and 30.9% in 2022, respectively.
Compared to 1970, Somerset County increased by 23.9%, while Allegany County and Baltimore (Independent City) County have increased by 25.5% and 19.4%, respectively, showing sustained reliance on government transfers. Residents in Somerset County received an average of $14,555 in transfers per capita, with Allegany County and Baltimore (Independent City) County close behind at $17,387 and $18,497, respectively.
For comparison, the statewide average was 15.3% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $10,724 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 Maryland, reliance on government transfers was just 5.4% (or $1,549 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 15.3% (or $10,724 per capita) in 2022, reflecting a total increase of 9.9% 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 Maryland included:
- Social Security: $3,404 (31.7% of total transfers)
- Medicare: $2,627 (24.5% of total transfers)
- Medicaid: $2,517 (23.5% of total transfers)
- Income Maintenance Programs: $1,150 (10.7% of total transfers)
With 16.7% of the population aged 65 and older, Maryland 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 Maryland, reliance on government transfers has similarly increased from 5.4% (or $1,549 per capita) in 1970 to 15.3% (or $10,724 per capita) in 2022, reflecting broader national trends.
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 |
---|---|---|---|---|---|---|
Allegany County | 37.6% | 5.7% | 25.5% | $17,387 | $4,542 | $14,943 |
Anne Arundel County | 11.8% | 1.2% | 7.8% | $9,317 | $1,969 | $8,235 |
Baltimore County | 17% | 2% | 12.8% | $11,498 | $2,214 | $10,253 |
Calvert County | 13.9% | 3.1% | 6.8% | $9,840 | $2,825 | $8,156 |
Caroline County | 26% | 2.6% | 16.2% | $14,452 | $3,566 | $12,416 |
Carroll County | 13.8% | 1.3% | 7.9% | $9,801 | $1,978 | $8,351 |
Cecil County | 21.5% | 3.3% | 15.8% | $12,027 | $3,182 | $10,707 |
Charles County | 14.9% | 3.7% | 9.8% | $9,377 | $2,534 | $8,058 |
Dorchester County | 29.4% | 2% | 19.9% | $16,395 | $3,720 | $14,366 |
Frederick County | 11.8% | 1% | 6.3% | $8,516 | $1,717 | $7,154 |
Garrett County | 27.4% | 2.7% | 14.4% | $14,503 | $3,743 | $12,533 |
Harford County | 15.4% | 2.1% | 11.5% | $10,398 | $2,469 | $9,388 |
Howard County | 8.7% | 1.9% | 6% | $7,737 | $2,008 | $6,838 |
Kent County | 23.7% | 2.3% | 15% | $16,487 | $4,194 | $14,564 |
Montgomery County | 9% | 2.3% | 6.6% | $8,428 | $2,233 | $7,423 |
Prince George's County | 16.9% | 3.9% | 14.2% | $8,934 | $2,301 | $8,100 |
Queen Anne's County | 13.8% | 0.6% | 7.9% | $10,978 | $2,457 | $9,513 |
St. Mary's County | 14.7% | 2.9% | 10.6% | $9,698 | $2,594 | $8,664 |
Somerset County | 37.8% | 4.9% | 23.9% | $14,555 | $3,976 | $12,284 |
Talbot County | 17.5% | 1% | 10.2% | $15,472 | $3,603 | $13,583 |
Washington County | 23.4% | 3.5% | 15.6% | $12,503 | $3,058 | $10,758 |
Wicomico County | 28.5% | 4.7% | 20.4% | $13,146 | $3,115 | $11,274 |
Worcester County | 23.7% | 2.3% | 15.3% | $15,267 | $2,998 | $13,431 |
Baltimore (Independent City) | 30.9% | 3.2% | 19.4% | $18,497 | $5,243 | $15,749 |