John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
In total, residents in Essex County received $10.2 billion in government transfers, which accounted for 16.2% of total county income.
Comparatively, across all counties in Massachusetts, government transfer payments totaled $88.2 billion, making up 14.9% of the state residents’ total income, with an average of $12,629 per resident.
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).
Breaking down the contributions in Essex County at the time, Social Security transfers totaled $3 billion, amounting to $3,759 per capita, or 29.6% of total government transfers. Medicare transfers accounted for $2.5 billion ($3,085 per capita), representing 24.3% of the total. Medicaid contributed $2.4 billion ($2,980 per capita), making up 23.5% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $1.7 billion ($2,081 per capita), or 16.4% of the total.
With 18.5% of the population aged 65 and older, Essex County has a significant demand for programs like Social Security and Medicare. Total per capita income excluding government transfers in Essex County was $65,504, noticeably below the county’s total income of $78,205, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Essex County saw a decrease of 21.8% in per capita government transfers, from $16,229 to $12,701 per capita.
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 8.21% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.63% (or $11,542 per capita) in 2022. In Essex County, reliance on government transfers has similarly increased from 9.67% (or $2,528 per capita) in 1970 to 16.2% (or $12,701 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Per Capita Transfers ($) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers ($) | Medicare Transfers ($) | Medicaid Transfers ($) | Income Maintenance Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Hampden County | 1 | $18,711 | 31% | 18.28% | $1,761,916,000 | $1,500,627,000 | $3,237,777,000 | $1,645,750,000 |
| Franklin County | 2 | $17,228 | 27.37% | 24.76% | $328,760,000 | $253,732,000 | $394,029,000 | $160,819,000 |
| Berkshire County | 3 | $17,171 | 26.52% | 25.37% | $662,413,000 | $545,865,000 | $563,494,000 | $293,769,000 |
| Barnstable County | 4 | $16,390 | 19.21% | 33% | $1,569,996,000 | $1,239,776,000 | $396,070,000 | $347,031,000 |
| Suffolk County | 5 | $15,158 | 15.64% | 13.5% | $1,656,221,000 | $1,835,159,000 | $5,245,864,000 | $2,207,565,000 |
| Bristol County | 6 | $14,216 | 22.18% | 17.77% | $2,213,036,000 | $1,936,937,000 | $2,272,527,000 | $1,303,327,000 |
| Plymouth County | 7 | $12,962 | 16.19% | 19.78% | $2,259,324,000 | $1,850,986,000 | $1,417,370,000 | $854,121,000 |
| Essex County | 8 | $12,701 | 16.24% | 18.51% | $3,032,620,000 | $2,488,584,000 | $2,403,963,000 | $1,678,548,000 |
| Dukes County | 9 | $11,939 | 13.63% | 27% | $101,588,000 | $86,133,000 | $16,546,000 | $23,834,000 |
| Worcester County | 10 | $11,881 | 18.33% | 17% | $3,020,038,000 | $2,514,286,000 | $2,284,803,000 | $1,675,316,000 |
| Hampshire County | 11 | $10,563 | 17.66% | 19.32% | $633,425,000 | $468,304,000 | $186,732,000 | $245,263,000 |
| Norfolk County | 12 | $9,915 | 9% | 17.83% | $2,630,729,000 | $2,161,066,000 | $931,573,000 | $909,971,000 |
| Middlesex County | 13 | $9,757 | 9.59% | 16.45% | $5,360,400,000 | $4,223,300,000 | $2,806,553,000 | $2,226,824,000 |
| Nantucket County | 14 | $7,625 | 7.4% | 16.59% | $42,965,000 | $32,834,000 | $7,024,000 | $14,850,000 |
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