Florence County: Government transfers accounted for 23.8% of income in 2022, up from 15.8% in 1970

In 2022, government transfers made up 23.8% of total income in Florence County, Wisconsin—a 8% rise from 15.8% in 1970 and a 0.8% increase from 2012’s 23%. This marks the sixth smallest increase among all Wisconsin counties over the past decade, according to information from the Economic Innovation Group.

On a per capita basis, this translates to $14,800 per resident in 2022, up from $11,719 in 2012 and $2,916 in 1970, ranking Florence County as the 32nd fastest-growing in per capita government transfers among Wisconsin counties over the past 10 years.

Meanwhile, Florence County had the 32nd largest share of income derived from government transfers, making it one of the largest dependent counties in the state.

Among Wisconsin’s counties, Menominee County saw the largest increase in transfer dependency over the past 10 years, surging 0.2% from 36.4% in 2012. In dollar terms, government transfers per capita in Menominee County jumped from $11,873 in 2012 to $15,176 in 2022.

For comparison, the statewide average was 18.1% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $11,137 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 Florence County, reliance on government transfers was just 15.8% (or $2,916 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 8.0% 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 Florence County included:

• Social Security: $6,575 per capita (44.4% of total transfers)
• Medicare: $3,027 per capita (20.5% of total transfers)
• Medicaid: $2,304 per capita (15.6% of total transfers)
• Income Maintenance Programs: $939 per capita (6.3% of total transfers)

With 29.6% of the population aged 65 and older, Florence 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.