Somerset County saw 22.0% increase in transfer dependency percentage since 1970 as of 2022

In 2022, government transfers made up 33.8% of total income in Somerset County, Maine—a 22% surge from 11.8% in 1970 and a 4.5% increase from 2012’s 29.3%. This marks the largest increase among all Maine counties over the past decade, according to information from the Economic Innovation Group.

On a per capita basis, this translates to $16,005 per resident in 2022, up from $11,717 in 2012 and $2,175 in 1970, ranking Somerset County as the second fastest-growing in per capita government transfers among Maine counties over the past 10 years.

Meanwhile, Somerset County had the third 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 Somerset County, reliance on government transfers was just 11.8% (or $2,175 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 22.0% 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 Somerset County included:

• Social Security: $4,929 per capita (30.8% of total transfers)
• Medicare: $3,315 per capita (20.7% of total transfers)
• Medicaid: $3,863 per capita (24.1% of total transfers)
• Income Maintenance Programs: $2,196 per capita (13.7% of total transfers)

With 22.9% of the population aged 65 and older, Somerset 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.