West Virginia’s Transfer Dependency in 2022 vs 1970: Shocking analysis

In 2022, government transfers accounted for 28.9% of total income in West Virginia, an alarming 16.5% surge from 12.4% in 1970, and a 3% increase over 2012’s 25.9%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $14,450 per resident in 2022, up from $11,180 in 2012 and $2,290 in 1970.

Among West Virginia’s counties, Mingo County saw the largest increase in transfer dependency over the past 10 years, surging 17.3% from 33.6% in 2012 to 50.9% in 2022, and up 28.7% from just 22.2% in 1970. In dollar terms, government transfers per capita in Mingo County jumped from $14,028 in 2012 to $18,656 in 2022, a stark contrast to the $3,293 recorded in 1970.

McDowell County followed with the second-largest increase in transfer dependency, increasing 13.2% from 40.9% in 2012 to 54.1% in 2022, and an overall increase of 35.5% from 1970’s 18.6% transfer dependency. This trend is reflected in per capita amounts, with residents of McDowell County receiving an average of $18,542 in transfer income in 2022, up from $14,169 in 2012 and more than double the $3,293 recorded in 1970.

Additionally, McDowell County had the highest percentage of income derived from government transfers, at 54.1% in 2022, making it the county with the highest overall transfer dependency. Mingo County and Webster County followed closely behind, with transfer dependency rates of 50.9% and 50.3% in 2022, respectively.

Compared to 1970, McDowell County increased by 35.5%, while Mingo County and Webster County have increased by 28.7% and 23.3%, respectively, showing sustained reliance on government transfers. Residents in McDowell County received an average of $18,542 in transfers per capita, with Mingo County and Webster County close behind at $18,656 and $16,400, respectively.

For comparison, the statewide average was 28.9% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $14,450 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 West Virginia, reliance on government transfers was just 12.4% (or $2,290 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 28.9% (or $14,450 per capita) in 2022, reflecting a total increase of 16.5% 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 West Virginia included:

• Social Security: $4,864 per capita (33.7% of total transfers)
• Medicare: $3,456 per capita (23.9% of total transfers)
• Medicaid: $2,865 per capita (19.8% of total transfers)
• Income Maintenance Programs: $1,581 per capita (10.9% of total transfers)

With 21.1% of the population aged 65 and older, West Virginia 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 West Virginia, reliance on government transfers has similarly increased from 12.4% (or $2,290 per capita) in 1970 to 28.9% (or $14,450 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.