John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among all government transfer programs, Income Maintenance was the smallest contributor. Social Security was the largest, totaling $4.45 billion, equating to $4,065 per capita and making up 32.7% of total transfers.
Medicaid was the second largest contributor in Rhode Island in 2022, accounting for $3.33 billion, averaging $3,040 per capita, and represented 24.4% of transfers in the state. Medicare transfers provided another $3.13 billion, averaging $2,866 per capita and comprising 23% of government support, making them the third largest contributors.
Statewide, including all transfer types, government transfer payments totaled $13.61 billion, and accounted for 19.6% of residents’ total income, with an average of $12,447 per resident.
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).
With 18.8% of the population aged 65 and older, Rhode Island has a significant demand for programs like Social Security and Medicare. The total per capita income in Rhode Island, excluding government transfers was $51,109.9, which is noticeably below the county's total income of $63,557, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Rhode Island saw no change in its Income Maintenance transfer dependency.
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 Rhode Island, reliance on government transfers has similarly increased from 9.8% (or $2,483 per capita) in 1970 to 19.6% (or $12,447 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Providence County | 1 | 23.1% | 16.4% | 6.3% | 4.7% | 7.1% | 3% | $12,576 |
| Kent County | 2 | 18.7% | 20.4% | 7.2% | 5% | 3% | 1.3% | $12,526 |
| Washington County | 3 | 15.2% | 23.4% | 6.6% | 4.3% | 1.9% | 0.8% | $12,333 |
| Newport County | 4 | 14.8% | 25.2% | 5.8% | 4% | 2.4% | 0.9% | $12,465 |
| Bristol County | 5 | 12.1% | 21.2% | 5.4% | 3.4% | 1.3% | 0.7% | $10,759 |
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