John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
On a per capita basis, this translates to $15,052 per resident in 2022, up from $11,446 in 2012 and $2,083 in 1970, ranking Oxford County as the seventh fastest-growing in per capita government transfers among Maine counties over the past 10 years.
Meanwhile, Oxford County had the fifth largest share of income derived from government transfers, making it one of the largest dependent counties in the state.
Among Maine's counties, Washington County saw the largest increase in transfer dependency over the past 10 years, surging 3.1% from 35.7% in 2012 to 38.8% in 2022, and up 22.8 percentage points from just 16% in 1970. In dollar terms, government transfers per capita in Washington County jumped from $14,840 in 2012 to $19,196 in 2022, contrasting to the $2,657 recorded in 1970.
For comparison, the statewide average was 22.7% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,779 per resident, 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 Oxford County, reliance on government transfers was just 10.8% (or $2,083 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 21.6% since 1970. This shift is largely influenced by an aging population increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Oxford County included:
- Social Security: $4,952 per capita (32.9% of total transfers)
- Medicare: $3,561 per capita (23.7% of total transfers)
- Medicaid: $3,154 per capita (21% of total transfers)
- Income Maintenance Programs: $1,988 per capita (13.2% of total transfers)
With 23.9% of the population aged 65 and older, Oxford County has a significant demand for 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.
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 Since 2012 | Per Capita Since 1970 |
|---|---|---|---|---|---|---|
| Washington County | 38.8% | +3.1% | +22.8% | $19,196 | $4,356 | $16,539 |
| Aroostook County | 35% | +2.8% | +25.6% | $17,806 | $4,283 | $16,079 |
| Somerset County | 33.8% | +4.5% | +22% | $16,005 | $4,288 | $13,830 |
| Piscataquis County | 33.6% | +1% | +20.9% | $16,727 | $3,592 | $14,441 |
| Oxford County | 32.4% | +3.3% | +21.6% | $15,052 | $3,606 | $12,969 |
| Franklin County | 30% | +3.8% | +20.8% | $14,152 | $3,406 | $12,491 |
| Androscoggin County | 27.7% | +2.1% | +17% | $13,577 | $2,462 | $11,249 |
| Waldo County | 27.4% | +1.8% | +15.7% | $14,982 | $4,111 | $12,910 |
| Penobscot County | 26.7% | +1.5% | +17.1% | $13,855 | $3,069 | $12,011 |
| Kennebec County | 25.2% | +1.2% | +15.4% | $13,946 | $2,667 | $11,842 |
| Lincoln County | 23.9% | +2.2% | +13.8% | $14,685 | $3,421 | $12,358 |
| Knox County | 23.6% | +2.7% | +11.4% | $14,611 | $3,952 | $12,159 |
| Hancock County | 23.2% | +2.6% | +12.7% | $14,726 | $4,249 | $12,549 |
| Sagadahoc County | 20.6% | +2.1% | +10.7% | $12,863 | $3,193 | $10,806 |
| York County | 19.3% | +1.3% | +11.1% | $12,568 | $3,180 | $10,738 |
| Cumberland County | 15.3% | +0.3% | +6.7% | $11,909 | $2,803 | $9,820 |
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