John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Minnesota’s counties, Chippewa County saw the largest increase in transfer dependency over the past 10 years, surging 7% from 18.5% in 2012 to 25.5% in 2022, and up 15.2% from just 10.3% in 1970. In dollar terms, government transfers per capita in Chippewa County jumped from $10,466 in 2012 to $14,320 in 2022, a stark contrast to the $2,175 recorded in 1970.
Waseca County followed with the second-largest increase in transfer dependency, increasing 5.8% from 17.4% in 2012 to 23.2% in 2022, and an overall increase of 15.3% from 1970’s 7.9% transfer dependency. This trend is reflected in per capita amounts, with residents of Waseca County receiving an average of $12,707 in transfer income in 2022, up from $8,971 in 2012 and more than double the $2,175 recorded in 1970.
Additionally, Wadena County had the highest percentage of income derived from government transfers, at 36.7% in 2022, making it the county with the highest overall transfer dependency. Aitkin County and Mahnomen County followed closely behind, with transfer dependency rates of 35.6% and 34.8% in 2022, respectively.
Compared to 1970, Wadena County increased by 23.1%, while Aitkin County and Mahnomen County have increased by 15% and 16.2%, respectively, showing sustained reliance on government transfers. Residents in Wadena County received an average of $17,125 in transfers per capita, with Aitkin County and Mahnomen County close behind at $17,748 and $16,903, respectively.
For comparison, the statewide average was 16.5% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $11,379 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 Minnesota, reliance on government transfers was just 8.2% (or $1,983 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 16.5% (or $11,379 per capita) in 2022, reflecting a total increase of 8.3% 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 Minnesota included:
- Social Security: $3,765 (33.1% of total transfers)
- Medicare: $2,495 (21.9% of total transfers)
- Medicaid: $3,003 (26.4% of total transfers)
- Income Maintenance Programs: $1,103 (9.7% of total transfers)
With 17.3% of the population aged 65 and older, Minnesota 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 Minnesota, reliance on government transfers has similarly increased from 8.2% (or $1,983 per capita) in 1970 to 16.5% (or $11,379 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 |
|---|---|---|---|---|---|---|
| Aitkin County | 35.6% | 1.7% | 15% | $17,748 | $4,793 | $14,591 |
| Anoka County | 16% | 1.6% | 12.4% | $9,665 | $2,246 | $8,877 |
| Becker County | 26.3% | 2.7% | 11.8% | $15,100 | $3,481 | $12,697 |
| Beltrami County | 29.5% | 1.5% | 15.5% | $14,831 | $3,303 | $12,804 |
| Benton County | 19.6% | 1.6% | 11.1% | $10,643 | $2,462 | $9,175 |
| Big Stone County | 25.5% | 2.7% | 12.6% | $17,907 | $4,119 | $15,438 |
| Blue Earth County | 19.2% | 2.8% | 11.5% | $10,159 | $2,427 | $8,573 |
| Brown County | 22.7% | 3.4% | 14.2% | $14,130 | $3,540 | $12,312 |
| Carlton County | 27.8% | 3% | 16.7% | $13,981 | $3,596 | $11,920 |
| Carver County | 8.6% | 1.2% | 2.6% | $7,522 | $2,202 | $6,063 |
| Cass County | 31.1% | 0.3% | 12.9% | $17,400 | $2,921 | $14,552 |
| Chippewa County | 25.5% | 7% | 15.2% | $14,320 | $3,854 | $12,145 |
| Chisago County | 18.4% | 2.1% | 7.7% | $10,790 | $3,009 | $8,363 |
| Clay County | 21.4% | 3% | 14.5% | $10,923 | $2,438 | $9,463 |
| Clearwater County | 29.5% | 1.2% | 9.6% | $15,759 | $3,835 | $12,863 |
| Cook County | 25% | 5% | 12.9% | $14,197 | $3,133 | $11,823 |
| Cottonwood County | 24.2% | 2.9% | 15.2% | $15,260 | $3,753 | $13,322 |
| Crow Wing County | 28% | 1.8% | 12.8% | $14,795 | $3,158 | $12,115 |
| Dakota County | 13.5% | 1.9% | 9.5% | $9,466 | $2,450 | $8,417 |
| Dodge County | 16.5% | 3.5% | 8.1% | $9,759 | $2,711 | $8,053 |
| Douglas County | 22.2% | 3.8% | 9.6% | $13,898 | $2,675 | $11,576 |
| Faribault County | 27.4% | 5% | 16.9% | $15,269 | $2,989 | $13,048 |
| Fillmore County | 22.9% | 3.6% | 11.5% | $12,751 | $3,123 | $10,519 |
| Freeborn County | 25.5% | 2.9% | 17.7% | $14,106 | $3,348 | $12,355 |
| Goodhue County | 19.3% | 3.2% | 10.7% | $12,352 | $3,517 | $10,461 |
| Grant County | 24.8% | 4.8% | 11.6% | $15,375 | $2,661 | $12,755 |
| Hennepin County | 12.1% | 0.7% | 4.8% | $10,860 | $2,292 | $8,648 |
| Houston County | 21.6% | 4.2% | 12.7% | $12,969 | $3,639 | $11,144 |
| Hubbard County | 25.2% | -2.1% | 7.6% | $14,791 | $3,238 | $12,120 |
| Isanti County | 20.8% | 0.6% | 12.1% | $10,914 | $2,083 | $9,154 |
| Itasca County | 31.8% | 3.6% | 18.7% | $16,408 | $4,246 | $14,088 |
| Jackson County | 20.6% | 4.7% | 13% | $13,089 | $3,446 | $11,319 |
| Kanabec County | 29.1% | 1.4% | 17.8% | $14,485 | $3,168 | $12,417 |
| Kandiyohi County | 22.2% | 3.8% | 12.3% | $13,217 | $3,245 | $11,210 |
| Kittson County | 22% | 4.1% | 9.8% | $15,419 | $4,055 | $13,026 |
| Koochiching County | 34.5% | 5.3% | 22.7% | $18,288 | $5,581 | $16,198 |
| Lac qui Parle County | 24.9% | 5.5% | 13.8% | $17,206 | $4,773 | $15,088 |
| Lake County | 30.9% | 5.7% | 21.5% | $16,406 | $4,129 | $14,691 |
| Lake of the Woods County | 28.5% | 3.7% | 15.2% | $16,996 | $4,956 | $15,095 |
| Le Sueur County | 17.7% | 0.8% | 7.1% | $10,768 | $2,384 | $8,505 |
| Lincoln County | 23.7% | 2.6% | 12.5% | $14,361 | $3,140 | $12,359 |
| Lyon County | 21.1% | 3.4% | 12.3% | $12,693 | $3,512 | $10,803 |
| McLeod County | 21.4% | 3% | 13.6% | $12,345 | $3,215 | $10,683 |
| Mahnomen County | 34.8% | 2.4% | 16.2% | $16,903 | $3,689 | $14,443 |
| Marshall County | 19.4% | 2.4% | 6.3% | $14,718 | $4,142 | $12,372 |
| Martin County | 25.1% | 4.8% | 17.2% | $15,784 | $4,263 | $13,941 |
| Meeker County | 23.8% | 3.2% | 14.2% | $13,033 | $3,647 | $10,956 |
| Mille Lacs County | 28.8% | 2.2% | 14.6% | $14,810 | $3,593 | $12,137 |
| Morrison County | 27.3% | 4.8% | 14% | $14,060 | $4,175 | $11,961 |
| Mower County | 25% | 4.1% | 16.9% | $13,443 | $2,941 | $11,438 |
| Murray County | 22.7% | 5.4% | 14.1% | $15,381 | $4,729 | $13,610 |
| Nicollet County | 17.8% | 2.8% | 10.7% | $10,319 | $2,528 | $8,960 |
| Nobles County | 19.7% | 2.3% | 11.5% | $11,078 | $2,524 | $9,331 |
| Norman County | 27.3% | 5.1% | 15.2% | $16,332 | $4,491 | $14,002 |
| Olmsted County | 14.8% | 1.8% | 9.2% | $10,026 | $2,436 | $8,645 |
| Otter Tail County | 25.3% | 2.2% | 13.2% | $14,347 | $3,152 | $12,157 |
| Pennington County | 20.3% | 2.2% | 10.3% | $13,432 | $3,306 | $11,285 |
| Pine County | 32% | 3.1% | 16.7% | $14,479 | $3,721 | $11,844 |
| Pipestone County | 19.9% | 3.2% | 10.4% | $13,414 | $3,731 | $11,350 |
| Polk County | 25.1% | 4.6% | 15.1% | $14,768 | $4,038 | $12,618 |
| Pope County | 22.7% | 2.5% | 10.1% | $14,474 | $3,655 | $12,185 |
| Ramsey County | 19.4% | 1.8% | 11.1% | $12,662 | $2,994 | $10,349 |
| Red Lake County | 20% | 1.9% | 4.9% | $14,685 | $5,010 | $12,257 |
| Redwood County | 19% | 0.3% | 9.3% | $14,103 | $3,500 | $12,108 |
| Renville County | 23.4% | 5.7% | 13% | $15,050 | $4,482 | $12,801 |
| Rice County | 19.2% | 2.5% | 10.7% | $10,275 | $2,725 | $8,572 |
| Rock County | 21.3% | 4.3% | 14.3% | $12,984 | $3,174 | $11,365 |
| Roseau County | 19.5% | 4% | 7.9% | $11,942 | $3,643 | $9,836 |
| St. Louis County | 26% | 3.5% | 15% | $14,720 | $3,500 | $12,364 |
| Scott County | 9.7% | 0.8% | 3.7% | $7,279 | $1,861 | $5,944 |
| Sherburne County | 15.5% | 1.7% | 8.2% | $8,833 | $2,285 | $7,408 |
| Sibley County | 20.7% | 2.9% | 12.5% | $12,392 | $3,171 | $10,716 |
| Stearns County | 19.2% | 1.5% | 10.3% | $11,387 | $2,896 | $9,774 |
| Steele County | 21.5% | 4.1% | 14.5% | $11,778 | $3,229 | $10,150 |
| Stevens County | 17.6% | 5.1% | 8.9% | $11,446 | $2,555 | $9,754 |
| Swift County | 22% | 2.1% | 10.5% | $14,711 | $3,399 | $12,498 |
| Todd County | 25.6% | 1.7% | 11% | $14,281 | $3,787 | $12,146 |
| Traverse County | 21.2% | 4.5% | 10.4% | $18,142 | $4,801 | $15,866 |
| Wabasha County | 22.4% | 4.4% | 11.8% | $13,597 | $4,334 | $11,487 |
| Wadena County | 36.7% | 3.5% | 23.1% | $17,125 | $3,874 | $14,859 |
| Waseca County | 23.2% | 5.8% | 15.3% | $12,707 | $3,736 | $10,985 |
| Washington County | 11.3% | 0.8% | 6.2% | $8,999 | $2,210 | $7,736 |
| Watonwan County | 22.1% | 2.3% | 12.8% | $12,597 | $2,824 | $10,625 |
| Wilkin County | 21.2% | 5.4% | 11.3% | $14,932 | $4,313 | $12,927 |
| Winona County | 20% | 4% | 11.2% | $11,521 | $3,162 | $9,721 |
| Wright County | 13.5% | 0.7% | 4.7% | $8,412 | $1,967 | $6,604 |
| Yellow Medicine County | 24.6% | 4.2% | 13.4% | $16,277 | $4,435 | $14,159 |
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