Connecticut: Government transfers accounted for 14.3% of total income in 2022, up from 6.9% in 1970

In 2022, government transfers accounted for 14.3% of total income in Connecticut, a 7.4% rise from 6.9% in 1970, and a 1.7% increase over 2012’s 12.6%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $11,828 per resident in 2022, up from $9,801 in 2012 and $2,084 in 1970.

Among Connecticut’s counties, New London County saw the largest increase in transfer dependency over the past 10 years, surging 2.9% from 16.4% in 2012 to 19.3% in 2022, and up 12.7% from just 6.6% in 1970. In dollar terms, government transfers per capita in New London County jumped from $9,713 in 2012 to $12,498 in 2022, a stark contrast to the $1,686 recorded in 1970.

Tolland County followed with the second-largest increase in transfer dependency, increasing 2.8% from 12.4% in 2012 to 15.2% in 2022, and an overall increase of 10.1% from 1970’s 5.1% transfer dependency. This trend is reflected in per capita amounts, with residents of Tolland County receiving an average of $9,371 in transfer income in 2022, up from $7,353 in 2012 and more than double the $1,686 recorded in 1970.

Additionally, Windham County had the highest percentage of income derived from government transfers, at 23.2% in 2022, making it the county with the highest overall transfer dependency. New Haven County and New London County followed closely behind, with transfer dependency rates of 19.9% and 19.3% in 2022, respectively.

Compared to 1970, Windham County increased by 14.6%, while New Haven County and New London County have increased by 11.5% and 12.7%, respectively, showing sustained reliance on government transfers. Residents in Windham County received an average of $12,386 in transfers per capita, with New Haven County and New London County close behind at $12,926 and $12,498, respectively.

For comparison, the statewide average was 14.3% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $11,828 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 Connecticut, reliance on government transfers was just 6.9% (or $2,084 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 14.3% (or $11,828 per capita) in 2022, reflecting a total increase of 7.4% 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 Connecticut included:

• Social Security: $4,026 per capita (34% of total transfers)
• Medicare: $3,008 per capita (25.4% of total transfers)
• Medicaid: $2,836 per capita (24% of total transfers)
• Income Maintenance Programs: $1,062 per capita (9% of total transfers)

With 18.6% of the population aged 65 and older, Connecticut 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 Connecticut, reliance on government transfers has similarly increased from 6.9% (or $2,084 per capita) in 1970 to 14.3% (or $11,828 per capita) in 2022.

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.