John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Tennessee’s counties, Stewart County saw the largest increase in transfer dependency over the past 10 years, surging 6.2% from 24.9% in 2012 to 31.1% in 2022, and up 21.4% from just 9.7% in 1970. In dollar terms, government transfers per capita in Stewart County jumped from $11,667 in 2012 to $15,122 in 2022, a stark contrast to the $2,086 recorded in 1970.
Montgomery County followed with the second-largest increase in transfer dependency, increasing 5% from 15.5% in 2012 to 20.5% in 2022, and an overall increase of 15% from 1970’s 5.5% transfer dependency. This trend is reflected in per capita amounts, with residents of Montgomery County receiving an average of $10,051 in transfer income in 2022, up from $7,584 in 2012 and more than double the $2,086 recorded in 1970.
Additionally, Lake County had the highest percentage of income derived from government transfers, at 46.4% in 2022, making it the county with the highest overall transfer dependency. Hancock County and Scott County followed closely behind, with transfer dependency rates of 43.6% and 39.6% in 2022, respectively.
Compared to 1970, Lake County increased by 29.8%, while Hancock County and Scott County have increased by 26% and 16%, respectively, showing sustained reliance on government transfers. Residents in Lake County received an average of $14,093 in transfers per capita, with Hancock County and Scott County close behind at $13,869 and $14,817, respectively.
For comparison, the statewide average was 19.2% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $11,209 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 Tennessee, reliance on government transfers was just 8.6% (or $1,656 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 19.2% (or $11,209 per capita) in 2022, reflecting a total increase of 10.6% 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 Tennessee included:
- Social Security: $3,960 (35.3% of total transfers)
- Medicare: $2,885 (25.7% of total transfers)
- Medicaid: $1,745 (15.6% of total transfers)
- Income Maintenance Programs: $1,285 (11.5% of total transfers)
With 17.1% of the population aged 65 and older, Tennessee 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 Tennessee, reliance on government transfers has similarly increased from 8.6% (or $1,656 per capita) in 1970 to 19.2% (or $11,209 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 |
|---|---|---|---|---|---|---|
| Anderson County | 24.9% | 0.7% | 17.4% | $12,818 | $2,049 | $11,313 |
| Bedford County | 22.1% | -3.1% | 12.9% | $10,482 | $1,237 | $8,732 |
| Benton County | 38.2% | 2% | 26% | $15,599 | $2,390 | $13,583 |
| Bledsoe County | 31.5% | -2.9% | 16.8% | $10,981 | $1,143 | $9,083 |
| Blount County | 21.6% | -0.1% | 13.1% | $11,515 | $2,030 | $9,913 |
| Bradley County | 24.6% | 1.7% | 17.6% | $11,568 | $1,803 | $10,280 |
| Campbell County | 35.5% | -2.6% | 12.7% | $14,913 | $1,273 | $12,037 |
| Cannon County | 26.1% | -3.1% | 14.3% | $11,469 | $538 | $9,726 |
| Carroll County | 37.3% | 1.6% | 25.3% | $15,132 | $1,452 | $13,132 |
| Carter County | 33% | 0.5% | 21.9% | $13,321 | $1,612 | $11,619 |
| Cheatham County | 19.5% | 0.7% | 11.9% | $10,800 | $2,529 | $9,405 |
| Chester County | 27.5% | -1.5% | 16% | $11,186 | $772 | $9,490 |
| Claiborne County | 35.2% | 1.8% | 17.7% | $14,809 | $2,092 | $12,719 |
| Clay County | 33.9% | -1.6% | 19.2% | $14,046 | $1,718 | $12,252 |
| Cocke County | 37.2% | 0.6% | 24.4% | $15,152 | $2,838 | $13,432 |
| Coffee County | 27.5% | 0.3% | 19.7% | $12,890 | $1,814 | $11,361 |
| Crockett County | 27.2% | -2.7% | 14.8% | $12,859 | $536 | $10,761 |
| Cumberland County | 38.1% | 3.4% | 25.3% | $16,947 | $3,440 | $15,187 |
| Davidson County | 10.2% | -3.1% | 3.9% | $8,747 | $696 | $7,272 |
| Decatur County | 33.6% | 1.4% | 21.7% | $16,553 | $1,352 | $14,741 |
| DeKalb County | 25.7% | -0.5% | 13.3% | $12,390 | $1,733 | $10,525 |
| Dickson County | 22.7% | -1.1% | 11.8% | $11,745 | $2,139 | $9,832 |
| Dyer County | 26.2% | -1.7% | 15.6% | $13,347 | $1,163 | $11,503 |
| Fayette County | 16.3% | -0.5% | 2.5% | $12,000 | $2,695 | $10,335 |
| Fentress County | 39.5% | -2.1% | 21.1% | $16,457 | $2,630 | $14,437 |
| Franklin County | 26.5% | -0.8% | 15.8% | $12,305 | $1,376 | $10,559 |
| Gibson County | 29.4% | -2.5% | 19.5% | $13,559 | $653 | $11,775 |
| Giles County | 29.5% | -0.9% | 18.3% | $13,151 | $1,453 | $11,259 |
| Grainger County | 30.7% | -1.7% | 18% | $13,012 | $1,965 | $11,456 |
| Greene County | 36.3% | -3% | 26.4% | $15,324 | -$1,067 | $13,838 |
| Grundy County | 38.5% | -0.6% | 23.1% | $14,822 | $1,727 | $12,777 |
| Hamblen County | 27.5% | 0.2% | 19.5% | $12,864 | $2,131 | $11,449 |
| Hamilton County | 18.9% | 1.2% | 11.3% | $11,478 | $1,836 | $9,761 |
| Hancock County | 43.6% | 0.5% | 26% | $13,869 | $1,857 | $11,895 |
| Hardeman County | 38.7% | 3.3% | 25.1% | $13,451 | $2,480 | $11,829 |
| Hardin County | 32.8% | 0.1% | 18.5% | $14,513 | $777 | $12,630 |
| Hawkins County | 33.6% | 2.5% | 23.1% | $13,825 | $2,269 | $12,284 |
| Haywood County | 35.6% | 4.4% | 22.1% | $13,367 | $2,118 | $11,547 |
| Henderson County | 26.9% | 0.2% | 14.6% | $12,444 | $2,199 | $10,496 |
| Henry County | 28.1% | -1.4% | 13.9% | $14,703 | $2,030 | $12,469 |
| Hickman County | 27.4% | -3.5% | 14.5% | $11,646 | $1,237 | $9,668 |
| Houston County | 38.1% | 1.4% | 26.7% | $14,918 | $2,196 | $12,663 |
| Humphreys County | 30.5% | 0.6% | 20.3% | $13,582 | $1,576 | $11,829 |
| Jackson County | 35.2% | -2.4% | 20% | $13,108 | $938 | $11,357 |
| Jefferson County | 28.7% | -0.4% | 17.5% | $12,877 | $2,208 | $11,264 |
| Johnson County | 37.9% | 2.1% | 22.8% | $14,596 | $2,863 | $12,690 |
| Knox County | 16.1% | -0.4% | 7.4% | $10,209 | $1,750 | $8,453 |
| Lake County | 46.4% | 0.3% | 29.8% | $14,093 | $1,503 | $11,863 |
| Lauderdale County | 32.4% | -1.5% | 17.1% | $12,862 | $2,466 | $10,754 |
| Lawrence County | 30.8% | -0.5% | 18.7% | $12,973 | $1,642 | $11,190 |
| Lewis County | 29.6% | -4.9% | 16.5% | $12,333 | $1,153 | $10,475 |
| Lincoln County | 26.3% | 1.1% | 14.7% | $12,801 | $2,180 | $10,927 |
| Loudon County | 21.5% | -1.5% | 10.4% | $14,420 | $2,960 | $12,556 |
| McMinn County | 29.7% | 0.4% | 19.8% | $12,873 | $1,808 | $11,245 |
| McNairy County | 38.8% | 2.9% | 23.7% | $14,866 | $2,371 | $12,820 |
| Macon County | 27.8% | -2.2% | 18% | $11,067 | $345 | $9,522 |
| Madison County | 24.8% | 2.4% | 14.9% | $12,950 | $2,806 | $11,170 |
| Marion County | 28.7% | 1.4% | 15.8% | $13,654 | $2,680 | $11,753 |
| Marshall County | 22.4% | -2.5% | 12.8% | $10,787 | $1,607 | $9,079 |
| Maury County | 20.9% | -1.5% | 11.6% | $11,045 | $1,366 | $9,318 |
| Meigs County | 33% | 0.4% | 21.2% | $13,144 | $1,612 | $11,540 |
| Monroe County | 32.6% | 0.6% | 20.3% | $13,500 | $2,300 | $11,807 |
| Montgomery County | 20.5% | 5% | 15% | $10,051 | $2,467 | $8,814 |
| Moore County | 22.9% | -3.1% | 16.3% | $11,126 | $135 | $10,082 |
| Morgan County | 30.7% | -1.9% | 12.9% | $11,358 | $956 | $9,323 |
| Obion County | 28.7% | 0.9% | 19% | $14,054 | $2,322 | $12,262 |
| Overton County | 31.6% | -0.5% | 15.1% | $12,455 | $1,579 | $10,500 |
| Perry County | 35.9% | -2.7% | 20.6% | $12,741 | -$567 | $10,567 |
| Pickett County | 36.6% | 0.2% | 22.9% | $15,310 | $1,700 | $13,462 |
| Polk County | 30.1% | 0.2% | 16.5% | $12,256 | $1,506 | $9,972 |
| Putnam County | 26.3% | 2.3% | 14.1% | $12,695 | $2,505 | $10,837 |
| Rhea County | 31.5% | 0.7% | 17.1% | $13,688 | $2,346 | $11,609 |
| Roane County | 28.6% | -0.5% | 17.5% | $14,340 | $1,770 | $12,409 |
| Robertson County | 19.7% | -0.3% | 10.4% | $10,318 | $1,643 | $8,705 |
| Rutherford County | 14.9% | -0.1% | 7% | $7,678 | $1,269 | $6,353 |
| Scott County | 39.6% | 0.7% | 16% | $14,817 | $2,556 | $12,119 |
| Sequatchie County | 29.2% | -0.8% | 16.3% | $13,432 | $1,702 | $11,717 |
| Sevier County | 23.2% | -0.5% | 13% | $12,198 | $2,715 | $10,558 |
| Shelby County | 18.6% | 1.4% | 11.7% | $10,933 | $1,934 | $9,403 |
| Smith County | 22.8% | -2.2% | 11% | $10,931 | $1,258 | $9,119 |
| Stewart County | 31.1% | 6.2% | 21.4% | $15,122 | $3,455 | $13,036 |
| Sullivan County | 26.5% | 1.3% | 19.5% | $13,561 | $1,928 | $12,113 |
| Sumner County | 15.4% | -1.5% | 8.3% | $9,598 | $1,236 | $8,210 |
| Tipton County | 22.5% | 0.9% | 11.8% | $10,983 | $2,254 | $9,289 |
| Trousdale County | 23.8% | -4.9% | 15.1% | $8,910 | -$2,147 | $7,441 |
| Unicoi County | 37.1% | 1.2% | 22.5% | $15,735 | $1,510 | $13,389 |
| Union County | 29.7% | -2.1% | 17.9% | $12,124 | $1,609 | $10,695 |
| Van Buren County | 36.8% | -3.2% | 23.2% | $13,232 | $490 | $11,727 |
| Warren County | 32.1% | 1.8% | 22.6% | $13,410 | $2,179 | $11,791 |
| Washington County | 22.9% | 1% | 13.8% | $12,248 | $2,243 | $10,488 |
| Wayne County | 34.1% | -4.3% | 22.1% | $12,458 | $931 | $10,851 |
| Weakley County | 28% | -3.1% | 17.1% | $12,807 | $1,232 | $11,011 |
| White County | 34.1% | 1.3% | 20.2% | $14,158 | $2,460 | $12,159 |
| Williamson County | 5.7% | 0.3% | -1.2% | $6,852 | $1,674 | $5,368 |
| Wilson County | 14.3% | -1.9% | 7% | $9,282 | $1,289 | $7,874 |
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