John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Michigan’s counties, Schoolcraft County saw the largest increase in transfer dependency over the past 10 years, surging 6.3% from 34.9% in 2012 to 41.2% in 2022, and up 21.8% from just 19.4% in 1970. In dollar terms, government transfers per capita in Schoolcraft County jumped from $13,631 in 2012 to $18,285 in 2022, a stark contrast to the $3,378 recorded in 1970.
Menominee County followed with the second-largest increase in transfer dependency, increasing 5.2% from 24.3% in 2012 to 29.5% in 2022, and an overall increase of 17.1% from 1970’s 12.4% transfer dependency. This trend is reflected in per capita amounts, with residents of Menominee County receiving an average of $13,947 in transfer income in 2022, up from $10,481 in 2012 and more than double the $3,378 recorded in 1970.
Additionally, Montmorency County had the highest percentage of income derived from government transfers, at 49.3% in 2022, making it the county with the highest overall transfer dependency. Roscommon County and Ontonagon County followed closely behind, with transfer dependency rates of 45.5% and 44.5% in 2022, respectively.
Compared to 1970, Montmorency County increased by 28%, while Roscommon County and Ontonagon County have increased by 26.5% and 31%, respectively, showing sustained reliance on government transfers. Residents in Montmorency County received an average of $20,425 in transfers per capita, with Roscommon County and Ontonagon County close behind at $19,912 and $20,769, respectively.
For comparison, the statewide average was 20.7% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $11,834 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 Michigan, reliance on government transfers was just 8.1% (or $1,992 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 20.7% (or $11,834 per capita) in 2022, reflecting a total increase of 12.6% 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 Michigan included:
- Social Security: $4,431 (37.4% of total transfers)
- Medicare: $3,038 (25.7% of total transfers)
- Medicaid: $2,143 (18.1% of total transfers)
- Income Maintenance Programs: $1,264 (10.7% of total transfers)
With 18.6% of the population aged 65 and older, Michigan 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 Michigan, reliance on government transfers has similarly increased from 8.1% (or $1,992 per capita) in 1970 to 20.7% (or $11,834 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 |
|---|---|---|---|---|---|---|
| Alcona County | 38.6% | -1.7% | 20.1% | $19,074 | $3,466 | $15,783 |
| Alger County | 35.8% | 3% | 17.6% | $14,726 | $3,833 | $11,891 |
| Allegan County | 17.8% | -0.3% | 8.7% | $9,781 | $1,703 | $7,907 |
| Alpena County | 36.4% | 3.1% | 26.1% | $17,680 | $3,880 | $15,687 |
| Antrim County | 27.5% | -1.1% | 14% | $15,489 | $2,788 | $12,961 |
| Arenac County | 36.4% | 1.2% | 22% | $17,004 | $3,807 | $14,223 |
| Baraga County | 33.9% | 5% | 17.6% | $13,485 | $2,985 | $10,426 |
| Barry County | 18.6% | -0.5% | 8.4% | $10,075 | $1,468 | $8,075 |
| Bay County | 29.2% | 2.5% | 20.1% | $14,494 | $2,913 | $12,580 |
| Benzie County | 25.6% | -1.5% | 9.8% | $14,028 | $2,703 | $10,837 |
| Berrien County | 22.3% | -1.2% | 13.1% | $13,462 | $2,593 | $11,271 |
| Branch County | 27.9% | 0.8% | 13.9% | $12,002 | $2,119 | $9,356 |
| Calhoun County | 28.9% | 2.8% | 19.4% | $12,982 | $2,082 | $10,705 |
| Cass County | 21.7% | -2.2% | 13.6% | $11,904 | $1,675 | $10,153 |
| Charlevoix County | 20.9% | -0.3% | 8.9% | $13,898 | $3,319 | $11,655 |
| Cheboygan County | 32.3% | 0% | 17.5% | $15,057 | $2,579 | $12,423 |
| Chippewa County | 30.4% | 2.5% | 19.7% | $12,960 | $2,817 | $10,775 |
| Clare County | 41.2% | 2.8% | 23.5% | $16,531 | $3,214 | $13,528 |
| Clinton County | 15.6% | 0.5% | 9.4% | $8,885 | $1,942 | $7,566 |
| Crawford County | 35.8% | 2% | 23.4% | $14,858 | $3,137 | $12,477 |
| Delta County | 34% | 5.1% | 20.8% | $15,159 | $3,355 | $12,640 |
| Dickinson County | 28.1% | 4% | 14.7% | $15,402 | $3,953 | $12,586 |
| Eaton County | 22.2% | 2.3% | 15.7% | $11,318 | $2,813 | $9,889 |
| Emmet County | 21.2% | 0.7% | 9.6% | $14,856 | $3,810 | $12,327 |
| Genesee County | 29.2% | 0.2% | 20.5% | $13,910 | $2,082 | $11,887 |
| Gladwin County | 36.2% | -0.3% | 23.7% | $15,826 | $2,496 | $13,534 |
| Gogebic County | 37.9% | 4.2% | 21.4% | $18,005 | $4,921 | $14,868 |
| Grand Traverse County | 19.1% | 0.3% | 9.4% | $11,861 | $2,699 | $9,638 |
| Gratiot County | 30% | 4.4% | 19.2% | $12,927 | $3,037 | $10,692 |
| Hillsdale County | 28.2% | 1.6% | 18.5% | $11,825 | $2,194 | $9,832 |
| Houghton County | 30.1% | 2.7% | 12.7% | $12,897 | $2,723 | $9,964 |
| Huron County | 29.2% | 3.3% | 17.6% | $16,416 | $3,961 | $14,191 |
| Ingham County | 21.5% | 1% | 14.1% | $10,676 | $2,007 | $8,912 |
| Ionia County | 23% | 0.9% | 11.4% | $9,427 | $1,808 | $7,302 |
| Iosco County | 39.7% | -0.4% | 31.4% | $18,187 | $3,232 | $16,170 |
| Iron County | 40% | 3.9% | 18.7% | $19,204 | $3,761 | $15,575 |
| Isabella County | 28.9% | 2.7% | 16.3% | $12,964 | $3,494 | $10,783 |
| Jackson County | 26.5% | 1.1% | 18.4% | $12,290 | $2,280 | $10,360 |
| Kalamazoo County | 17.6% | -0.1% | 10.9% | $10,489 | $1,814 | $8,884 |
| Kalkaska County | 31.3% | 0.5% | 15.2% | $13,192 | $2,076 | $10,019 |
| Kent County | 13.9% | -0.4% | 5.7% | $9,305 | $1,320 | $7,347 |
| Keweenaw County | 31.2% | 3.2% | 10.7% | $17,118 | $3,916 | $13,853 |
| Lake County | 44.1% | 0.4% | 22.4% | $16,083 | $1,678 | $12,340 |
| Lapeer County | 23.2% | 2% | 13.5% | $11,720 | $2,611 | $9,719 |
| Leelanau County | 16.2% | -1% | 6.4% | $13,243 | $2,430 | $11,072 |
| Lenawee County | 25.8% | 2.1% | 18.2% | $12,252 | $2,663 | $10,528 |
| Livingston County | 13.5% | 0.3% | 7.9% | $9,343 | $1,914 | $7,966 |
| Luce County | 42.2% | 2.7% | 20.3% | $17,805 | $4,769 | $14,273 |
| Mackinac County | 31.4% | 2.5% | 13.7% | $16,351 | $3,674 | $13,304 |
| Macomb County | 20% | 0.2% | 15.2% | $10,779 | $1,523 | $9,542 |
| Manistee County | 36.6% | 3.7% | 23.5% | $16,657 | $3,540 | $14,150 |
| Marquette County | 28.9% | 4.7% | 19.3% | $13,445 | $3,284 | $11,454 |
| Mason County | 33.3% | 4.2% | 20.8% | $15,660 | $3,602 | $13,209 |
| Mecosta County | 29.5% | -0.6% | 17.6% | $12,535 | $2,208 | $10,736 |
| Menominee County | 29.5% | 5.2% | 17.1% | $13,947 | $3,466 | $11,803 |
| Midland County | 19.3% | 3.5% | 14.3% | $11,761 | $2,710 | $10,498 |
| Missaukee County | 28.7% | -0.1% | 14.6% | $12,551 | $2,447 | $10,267 |
| Monroe County | 21.2% | 1.7% | 14.8% | $11,222 | $2,235 | $9,807 |
| Montcalm County | 27.9% | 0.6% | 16.2% | $11,363 | $1,790 | $9,022 |
| Montmorency County | 49.3% | 4% | 28% | $20,425 | $4,497 | $17,063 |
| Muskegon County | 28.9% | 1.3% | 17.9% | $13,189 | $2,425 | $10,818 |
| Newaygo County | 27.8% | 0.2% | 16.2% | $12,279 | $1,999 | $10,025 |
| Oakland County | 11.9% | -0.4% | 7.1% | $10,053 | $1,331 | $8,508 |
| Oceana County | 30.6% | 1.5% | 17.1% | $13,738 | $2,713 | $11,105 |
| Ogemaw County | 39.9% | 0.7% | 20.3% | $16,423 | $2,910 | $13,179 |
| Ontonagon County | 44.5% | 4.5% | 31% | $20,769 | $5,162 | $18,313 |
| Osceola County | 31.3% | 1.7% | 17.7% | $13,926 | $3,185 | $11,565 |
| Oscoda County | 40.1% | 0.7% | 19.6% | $16,284 | $2,339 | $13,240 |
| Otsego County | 26.4% | 2.1% | 15.1% | $12,710 | $2,450 | $10,498 |
| Ottawa County | 14.1% | -0.3% | 7.3% | $8,623 | $1,736 | $7,099 |
| Presque Isle County | 36.5% | 2% | 20.4% | $16,872 | $3,574 | $14,227 |
| Roscommon County | 45.5% | 2.1% | 26.5% | $19,912 | $3,495 | $16,209 |
| Saginaw County | 30.2% | 1.6% | 21.6% | $14,386 | $3,055 | $12,478 |
| St. Clair County | 24.2% | 1.3% | 14.9% | $12,699 | $2,541 | $10,571 |
| St. Joseph County | 24.8% | -0.2% | 15.7% | $11,632 | $2,004 | $9,567 |
| Sanilac County | 32.5% | 3% | 22.9% | $15,009 | $3,562 | $12,968 |
| Schoolcraft County | 41.2% | 6.3% | 21.8% | $18,285 | $4,654 | $14,907 |
| Shiawassee County | 27.9% | 2.8% | 18.6% | $13,235 | $3,305 | $11,215 |
| Tuscola County | 33.5% | 3.8% | 22.8% | $14,648 | $3,689 | $12,543 |
| Van Buren County | 26% | 1.8% | 13.8% | $12,888 | $2,823 | $10,349 |
| Washtenaw County | 12.2% | 0.4% | 7.2% | $8,708 | $1,794 | $7,343 |
| Wayne County | 27.7% | -0.3% | 18.8% | $13,435 | $1,514 | $11,122 |
| Wexford County | 31.3% | 2.2% | 16.8% | $13,710 | $2,839 | $11,137 |
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