The significant increase in the reliance on transfer payments over the past two decades is a concerning trend across U.S. counties. Once considered supplementary, these payments now account for over 25% of personal income in more than half of U.S. counties. This reliance signals a growing dependence on government assistance for basic living needs, reflecting underlying economic weaknesses.
In 2000, only 10% of counties reported such high dependence, making the recent surge even more alarming. Aging populations, economic downturns, and expanded benefit availability have contributed to this troubling trend. If unchecked, this could erode economic resilience, leaving millions vulnerable during future downturns. The increase in transfer payments is not just a sign of individual hardship but a broader warning of systemic economic fragility that demands attention.
Pretty staggering.
Transfers are 25%+ of income in 50%+ of US counties.
In 2000, it was ~10% of counties. pic.twitter.com/mgDJe79Ydi
— Random Walk (@MosesSternstein) October 2, 2024
Sources:
eig.org/great-transfermation/
time.com/5888024/50-trillion-income-inequality-america/