John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Alabama’s counties, Russell County saw the largest increase in transfer dependency over the past 10 years, surging 7.1% from 27.7% in 2012 to 34.8% in 2022, and up 25.5% from just 9.3% in 1970. In dollar terms, government transfers per capita in Russell County jumped from $9,879 in 2012 to $13,388 in 2022, a stark contrast to the $1,662 recorded in 1970.
Perry County followed with the second-largest increase in transfer dependency, increasing 6.9% from 40.7% in 2012 to 47.6% in 2022, and an overall increase of 29.7% from 1970’s 17.9% transfer dependency. This trend is reflected in per capita amounts, with residents of Perry County receiving an average of $18,237 in transfer income in 2022, up from $13,434 in 2012 and more than double the $1,662 recorded in 1970.
Additionally, Perry County had the highest percentage of income derived from government transfers, at 47.6% in 2022, making it the county with the highest overall transfer dependency. Wilcox County and Greene County followed closely behind, with transfer dependency rates of 46% and 44.8% in 2022, respectively.
Compared to 1970, Perry County increased by 29.7%, while Wilcox County and Greene County have increased by 31.6% and 23%, respectively, showing sustained reliance on government transfers. Residents in Perry County received an average of $18,237 in transfers per capita, with Wilcox County and Greene County close behind at $18,348 and $17,080, respectively.
For comparison, the statewide average was 23.4% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $11,924 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 Alabama, reliance on government transfers was just 9.6% (or $1,736 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 23.4% (or $11,924 per capita) in 2022, reflecting a total increase of 13.8% 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 Alabama included:
- Social Security: $4,176 (35% of total transfers)
- Medicare: $3,061 (25.7% of total transfers)
- Medicaid: $1,496 (12.5% of total transfers)
- Income Maintenance Programs: $1,476 (12.4% of total transfers)
With 17.9% of the population aged 65 and older, Alabama 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 Alabama, reliance on government transfers has similarly increased from 9.6% (or $1,736 per capita) in 1970 to 23.4% (or $11,924 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 |
|---|---|---|---|---|---|---|
| Autauga County | 22.1% | 2.7% | 14.2% | $10,892 | $2,514 | $9,435 |
| Baldwin County | 20.9% | 1% | 11.4% | $11,878 | $2,511 | $10,257 |
| Barbour County | 36.1% | 4.7% | 22.5% | $14,648 | $3,936 | $12,609 |
| Bibb County | 32.3% | 3.1% | 16.2% | $12,124 | $2,469 | $9,891 |
| Blount County | 24.3% | 0.2% | 13.5% | $10,628 | $1,841 | $8,976 |
| Bullock County | 37.6% | 4.3% | 20.9% | $11,806 | $1,696 | $9,680 |
| Butler County | 31.7% | -0.3% | 16.4% | $14,893 | $3,128 | $12,907 |
| Calhoun County | 31.3% | 4% | 22.1% | $13,328 | $2,634 | $11,685 |
| Chambers County | 35.4% | 2.9% | 25% | $13,769 | $2,269 | $12,042 |
| Cherokee County | 31.9% | 1.4% | 20.7% | $14,328 | $3,009 | $12,690 |
| Chilton County | 28.3% | 1.7% | 14.5% | $11,939 | $2,359 | $9,943 |
| Choctaw County | 35.4% | 1.7% | 17.7% | $16,436 | $3,420 | $14,433 |
| Clarke County | 34.4% | 3.6% | 22.1% | $15,554 | $4,275 | $13,805 |
| Clay County | 32.4% | -1.6% | 18.1% | $12,907 | $1,657 | $10,910 |
| Cleburne County | 27.2% | -0.4% | 17.7% | $12,036 | $1,771 | $10,528 |
| Coffee County | 25.2% | 3.4% | 17% | $12,806 | $3,174 | $11,301 |
| Colbert County | 29.2% | 0.7% | 19.3% | $12,846 | $1,520 | $11,046 |
| Conecuh County | 42% | 2.3% | 24.9% | $16,955 | $3,834 | $14,898 |
| Coosa County | 35.7% | 4% | 23.1% | $14,125 | $3,989 | $12,324 |
| Covington County | 34.8% | 3.5% | 21% | $14,471 | $2,969 | $12,234 |
| Crenshaw County | 30.7% | 0.6% | 11.5% | $14,683 | $3,429 | $12,301 |
| Cullman County | 24% | -2% | 12.5% | $11,797 | $1,541 | $10,105 |
| Dale County | 30.2% | 6.4% | 25.9% | $13,262 | $3,527 | $12,312 |
| Dallas County | 40.7% | 4% | 29.6% | $17,007 | $3,958 | $15,107 |
| DeKalb County | 30.1% | 0.4% | 15.8% | $12,186 | $2,407 | $10,309 |
| Elmore County | 23.4% | 3% | 12.6% | $11,461 | $2,528 | $9,690 |
| Escambia County | 33.7% | 3.7% | 22.4% | $13,084 | $2,504 | $11,380 |
| Etowah County | 34.2% | 4.1% | 23.3% | $14,686 | $3,258 | $12,768 |
| Fayette County | 39.7% | 4.6% | 27.6% | $16,692 | $4,416 | $14,827 |
| Franklin County | 28.2% | -1.1% | 14.2% | $11,853 | $1,731 | $9,694 |
| Geneva County | 33.7% | 2.5% | 22.2% | $13,910 | $2,731 | $11,969 |
| Greene County | 44.8% | 6.4% | 23% | $17,080 | $4,069 | $14,757 |
| Hale County | 37.5% | 5.7% | 17.4% | $16,189 | $4,217 | $13,891 |
| Henry County | 28.2% | 1.6% | 15.5% | $14,682 | $3,827 | $12,807 |
| Houston County | 26.3% | 4% | 17.6% | $13,458 | $3,441 | $11,828 |
| Jackson County | 29.7% | 2.5% | 19.7% | $12,862 | $2,547 | $11,193 |
| Jefferson County | 17.8% | 0.3% | 8.9% | $11,783 | $2,136 | $9,895 |
| Lamar County | 37.3% | 2.2% | 20.2% | $14,604 | $2,127 | $12,197 |
| Lauderdale County | 26.5% | 1.9% | 17.6% | $11,933 | $2,214 | $10,322 |
| Lawrence County | 30.8% | 2.6% | 21.2% | $12,792 | $2,705 | $11,215 |
| Lee County | 17.9% | 1.4% | 10.9% | $8,351 | $1,913 | $7,208 |
| Limestone County | 17.8% | -0.9% | 10% | $9,620 | $1,321 | $8,219 |
| Lowndes County | 34.8% | 4.5% | 22.5% | $16,211 | $4,002 | $14,669 |
| Macon County | 36% | 1.8% | 22.7% | $13,726 | $2,745 | $11,814 |
| Madison County | 16.3% | 2% | 12% | $9,979 | $2,255 | $8,934 |
| Marengo County | 34.2% | 3% | 21.5% | $15,981 | $3,547 | $14,295 |
| Marion County | 28.2% | -3.3% | 15% | $11,935 | $1,388 | $9,947 |
| Marshall County | 25.2% | -0.5% | 15% | $11,561 | $1,854 | $9,744 |
| Mobile County | 26.5% | 2.8% | 17.2% | $12,602 | $2,922 | $10,972 |
| Monroe County | 36.5% | 3% | 25% | $15,019 | $3,690 | $13,449 |
| Montgomery County | 25.2% | 4.1% | 17.8% | $12,410 | $2,835 | $10,792 |
| Morgan County | 24.8% | 2.1% | 16.9% | $11,472 | $2,189 | $9,834 |
| Perry County | 47.6% | 6.9% | 29.7% | $18,237 | $4,803 | $16,166 |
| Pickens County | 34.2% | 2.1% | 17.9% | $14,606 | $2,373 | $12,431 |
| Pike County | 26.3% | -1.5% | 13.6% | $12,283 | $1,591 | $10,416 |
| Randolph County | 33.7% | 0.3% | 17.2% | $14,338 | $2,834 | $12,165 |
| Russell County | 34.8% | 7.1% | 25.5% | $13,388 | $3,509 | $11,726 |
| St. Clair County | 23.1% | 1.7% | 12.1% | $11,095 | $2,524 | $9,425 |
| Shelby County | 13.2% | 1.5% | 3.6% | $8,891 | $2,266 | $7,209 |
| Sumter County | 38.7% | 4.2% | 18.8% | $14,896 | $3,061 | $12,600 |
| Talladega County | 31.9% | 1.9% | 20.2% | $13,150 | $2,387 | $11,296 |
| Tallapoosa County | 30% | 0.4% | 16.7% | $14,615 | $2,321 | $12,476 |
| Tuscaloosa County | 22.4% | 2.2% | 12.5% | $9,251 | $905 | $7,532 |
| Walker County | 32% | 1.6% | 16.3% | $14,939 | $2,110 | $12,425 |
| Washington County | 34% | 6.2% | 22.1% | $14,857 | $4,199 | $13,343 |
| Wilcox County | 46% | 3.4% | 31.6% | $18,348 | $4,419 | $16,702 |
| Winston County | 31.5% | -1% | 18.6% | $13,797 | $2,455 | $11,817 |
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