John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Indiana’s counties, Fayette County saw the largest increase in transfer dependency over the past 10 years, surging 5.8% from 32.8% in 2012 to 38.6% in 2022, and up 31.1% from just 7.5% in 1970. In dollar terms, government transfers per capita in Fayette County jumped from $13,174 in 2012 to $18,339 in 2022, a stark contrast to the $1,552 recorded in 1970.
Orange County and Sullivan County followed with the second-largest increase in transfer dependency, increasing 5.4% from 2012.
Additionally, Fayette County had the highest percentage of income derived from government transfers, at 38.6% in 2022, making it the county with the highest overall transfer dependency. Blackford County and Crawford County followed closely behind, with transfer dependency rates of 35.2% and 35.1% in 2022, respectively.
Compared to 1970, Fayette County increased by 31.1%, while Blackford County and Crawford County have increased by 27.5% and 19.7%, respectively, showing sustained reliance on government transfers. Residents in Fayette County received an average of $18,339 in transfers per capita, with Blackford County and Crawford County close behind at $15,657 and $14,532, respectively.
For comparison, the statewide average was 19.8% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $11,545 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 Indiana, reliance on government transfers was just 6.9% (or $1,563 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 19.8% (or $11,545 per capita) in 2022, reflecting a total increase of 12.9% 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 Indiana included:
- Social Security: $3,957 (34.3% of total transfers)
- Medicare: $2,805 (24.3% of total transfers)
- Medicaid: $2,556 (22.1% of total transfers)
- Income Maintenance Programs: $1,260 (10.9% of total transfers)
With 16.8% of the population aged 65 and older, Indiana 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 Indiana, reliance on government transfers has similarly increased from 6.9% (or $1,563 per capita) in 1970 to 19.8% (or $11,545 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 |
|---|---|---|---|---|---|---|
| Adams County | 19.5% | 1.1% | 13.4% | $9,501 | $1,980 | $8,177 |
| Allen County | 19.3% | 1.1% | 13.5% | $11,026 | $2,468 | $9,613 |
| Bartholomew County | 17.4% | 1.5% | 12.1% | $10,754 | $2,199 | $9,449 |
| Benton County | 21.8% | 2.1% | 13.6% | $11,739 | $3,021 | $9,939 |
| Blackford County | 35.2% | 5.1% | 27.5% | $15,657 | $3,766 | $14,070 |
| Boone County | 9.3% | 0% | 3.1% | $8,510 | $1,916 | $7,083 |
| Brown County | 23.6% | 2.4% | 16.9% | $13,947 | $3,890 | $12,670 |
| Carroll County | 20.6% | 1.6% | 13.2% | $10,419 | $1,864 | $8,860 |
| Cass County | 31.1% | 4.4% | 23.2% | $14,761 | $4,089 | $12,963 |
| Clark County | 21.6% | 1.4% | 15.2% | $11,537 | $2,141 | $10,123 |
| Clay County | 29.7% | 3.8% | 17.5% | $13,201 | $3,099 | $10,969 |
| Clinton County | 26% | 4% | 16.9% | $11,972 | $3,156 | $9,976 |
| Crawford County | 35.1% | 3.6% | 19.7% | $14,532 | $3,707 | $11,951 |
| Daviess County | 19.2% | -1.1% | 10.2% | $11,152 | $2,435 | $9,172 |
| Dearborn County | 21.1% | 3% | 13.2% | $12,138 | $3,462 | $10,496 |
| Decatur County | 23.1% | 2.4% | 14.8% | $12,040 | $2,844 | $10,427 |
| DeKalb County | 21.4% | 1.7% | 13.8% | $11,756 | $3,043 | $10,134 |
| Delaware County | 31.3% | 3.6% | 24.7% | $14,217 | $3,731 | $12,859 |
| Dubois County | 17.4% | 3% | 10.4% | $11,450 | $3,404 | $10,005 |
| Elkhart County | 17.5% | -1.3% | 11.7% | $10,251 | $2,220 | $8,768 |
| Fayette County | 38.6% | 5.8% | 31.1% | $18,339 | $5,165 | $16,787 |
| Floyd County | 20.1% | 2.2% | 12% | $12,253 | $2,808 | $10,456 |
| Fountain County | 27.7% | 4% | 17.8% | $14,050 | $3,926 | $12,069 |
| Franklin County | 23.8% | 4.4% | 16.4% | $13,238 | $3,800 | $11,954 |
| Fulton County | 25.2% | 3% | 16.5% | $12,629 | $2,936 | $10,825 |
| Gibson County | 22.6% | 2.6% | 12.1% | $12,441 | $3,395 | $10,324 |
| Grant County | 33.8% | 4.2% | 26.7% | $16,247 | $4,055 | $14,773 |
| Greene County | 28.2% | 3.1% | 16.7% | $14,343 | $3,994 | $12,193 |
| Hamilton County | 7.4% | 0.7% | 2.8% | $7,102 | $2,088 | $5,912 |
| Hancock County | 16.7% | 1.5% | 11.4% | $10,283 | $2,349 | $9,058 |
| Harrison County | 22.6% | 2.5% | 14.1% | $12,273 | $3,357 | $10,673 |
| Hendricks County | 13.5% | 1.3% | 8.8% | $8,144 | $2,015 | $7,048 |
| Henry County | 31.3% | 3.5% | 23.2% | $14,557 | $3,824 | $12,844 |
| Howard County | 30.1% | 3.7% | 24% | $14,280 | $3,163 | $12,852 |
| Huntington County | 25% | 3.2% | 16.6% | $12,827 | $3,434 | $11,015 |
| Jackson County | 22% | 2.3% | 14.2% | $10,873 | $1,887 | $9,211 |
| Jasper County | 20.9% | 2.4% | 13.4% | $12,155 | $3,491 | $10,634 |
| Jay County | 24.5% | 1.3% | 16.2% | $13,193 | $3,617 | $11,576 |
| Jefferson County | 28.7% | 3.9% | 20.9% | $14,779 | $3,993 | $13,258 |
| Jennings County | 33.3% | 3.8% | 24.3% | $16,385 | $4,701 | $14,907 |
| Johnson County | 16.3% | 1.5% | 10.6% | $9,682 | $2,229 | $8,426 |
| Knox County | 30.2% | 4.8% | 18.8% | $16,335 | $4,618 | $14,191 |
| Kosciusko County | 18.2% | 1.2% | 12.2% | $10,482 | $2,439 | $9,081 |
| Lagrange County | 13.3% | -2.5% | 7.4% | $7,408 | $1,374 | $6,287 |
| Lake County | 24.1% | 2.3% | 17.8% | $12,804 | $2,859 | $11,321 |
| LaPorte County | 25.6% | 4.3% | 18.9% | $12,820 | $3,489 | $11,307 |
| Lawrence County | 27.3% | 1.7% | 17.9% | $14,304 | $3,816 | $12,405 |
| Madison County | 30% | 1.9% | 22.5% | $13,933 | $3,049 | $12,347 |
| Marion County | 16.6% | -0.1% | 10.6% | $11,041 | $1,726 | $9,483 |
| Marshall County | 21.5% | 1% | 14.1% | $11,293 | $2,710 | $9,650 |
| Martin County | 25.5% | 2.1% | 16.1% | $13,416 | $3,886 | $11,686 |
| Miami County | 30.2% | 4.6% | 23.4% | $12,178 | $3,196 | $10,563 |
| Monroe County | 17% | 1.2% | 11.4% | $9,249 | $2,645 | $8,227 |
| Montgomery County | 25% | 3.6% | 17.4% | $12,484 | $3,369 | $10,882 |
| Morgan County | 22.4% | 3.1% | 15.8% | $12,041 | $3,259 | $10,698 |
| Newton County | 22.7% | 1.7% | 14.3% | $11,723 | $2,623 | $10,006 |
| Noble County | 21.6% | 1.4% | 14.4% | $10,840 | $2,728 | $9,361 |
| Ohio County | 22.7% | 2.8% | 13% | $12,353 | $3,839 | $10,579 |
| Orange County | 33.7% | 5.4% | 22.2% | $15,429 | $4,306 | $13,360 |
| Owen County | 28.7% | 2.5% | 15.8% | $14,183 | $3,899 | $12,241 |
| Parke County | 27.3% | -0.1% | 16.7% | $13,666 | $3,600 | $11,555 |
| Perry County | 28.7% | 3.7% | 18.5% | $12,676 | $3,295 | $10,888 |
| Pike County | 29.5% | 4.4% | 17.2% | $14,046 | $3,575 | $11,647 |
| Porter County | 17.4% | 2.5% | 13.2% | $11,062 | $2,971 | $10,009 |
| Posey County | 20.7% | 3.1% | 11.7% | $12,235 | $3,299 | $10,482 |
| Pulaski County | 24.9% | 2.9% | 15% | $13,695 | $3,490 | $11,777 |
| Putnam County | 22.8% | 1% | 14.5% | $10,787 | $2,664 | $9,264 |
| Randolph County | 28.4% | 1.9% | 19.9% | $14,595 | $4,051 | $12,753 |
| Ripley County | 22.3% | 3.2% | 13.6% | $11,250 | $2,969 | $9,478 |
| Rush County | 24.6% | 2.6% | 16.6% | $13,526 | $3,687 | $11,898 |
| St. Joseph County | 20.4% | 1.6% | 13% | $11,565 | $2,674 | $9,881 |
| Scott County | 30.5% | 1.5% | 21.7% | $13,476 | $2,494 | $11,813 |
| Shelby County | 24.5% | 3.5% | 17.5% | $12,813 | $3,440 | $11,325 |
| Spencer County | 22.6% | 3.7% | 11.8% | $12,240 | $3,806 | $10,333 |
| Starke County | 34.8% | 4.3% | 24% | $14,610 | $3,449 | $12,701 |
| Steuben County | 22.5% | 1.9% | 14.3% | $12,312 | $3,382 | $10,649 |
| Sullivan County | 31.9% | 5.4% | 18.8% | $13,749 | $3,794 | $11,162 |
| Switzerland County | 26.9% | 2.9% | 15.2% | $11,197 | $3,155 | $9,264 |
| Tippecanoe County | 17.2% | 1.9% | 11.7% | $8,165 | $1,860 | $6,976 |
| Tipton County | 25.3% | 4.3% | 17.3% | $13,097 | $3,272 | $11,380 |
| Union County | 26.7% | 2.5% | 20.4% | $12,999 | $3,854 | $11,608 |
| Vanderburgh County | 23.7% | 4.7% | 15.3% | $13,408 | $3,562 | $11,490 |
| Vermillion County | 31.8% | 5% | 21.1% | $14,555 | $3,686 | $12,267 |
| Vigo County | 30% | 4.5% | 21% | $13,809 | $3,506 | $11,961 |
| Wabash County | 31.3% | 5.2% | 23.8% | $16,286 | $4,714 | $14,750 |
| Warren County | 21.4% | 2.3% | 14.1% | $11,418 | $2,073 | $10,020 |
| Warrick County | 16.9% | 2.5% | 9.3% | $11,527 | $3,352 | $9,916 |
| Washington County | 25.4% | -0.3% | 16.4% | $12,628 | $2,777 | $10,945 |
| Wayne County | 31.8% | 3.8% | 24.4% | $15,769 | $4,043 | $14,115 |
| Wells County | 22.8% | 2.9% | 16.9% | $11,690 | $2,799 | $10,344 |
| White County | 25.3% | 2.9% | 16.1% | $13,295 | $3,271 | $11,288 |
| Whitley County | 20.7% | 2.6% | 13.4% | $11,402 | $3,081 | $9,803 |
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