New Hampshire sees 7.5% increase in transfer reliance since 1970

In 2022, government transfers accounted for 15.1% of total income in New Hampshire, a 7.5% rise from 7.6% in 1970, and a 1.8% increase over 2012’s 13.3%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $11,127 per resident in 2022, up from $8,280 in 2012 and $1,772 in 1970.

Among New Hampshire’s counties, Merrimack County saw the largest increase in transfer dependency over the past 10 years, surging 5.2% from 13% in 2012 to 18.2% in 2022, and up 10% from just 8.2% in 1970. In dollar terms, government transfers per capita in Merrimack County jumped from $8,551 in 2012 to $12,469 in 2022, a stark contrast to the $1,914 recorded in 1970.

Coos County followed with the second-largest increase in transfer dependency, increasing 4% from 29.5% in 2012 to 33.5% in 2022, and an overall increase of 21.4% from 1970’s 12.1% transfer dependency. This trend is reflected in per capita amounts, with residents of Coos County receiving an average of $17,581 in transfer income in 2022, up from $13,189 in 2012 and more than double the $1,914 recorded in 1970.

Additionally, Coos County had the highest percentage of income derived from government transfers, at 33.5% in 2022, making it the county with the highest overall transfer dependency. Carroll County and Sullivan County followed, with transfer dependency rates of 20.9% and 20.5% in 2022, respectively.

Compared to 1970, Coos County increased by 21.4%, while Carroll County and Sullivan County have increased by 10.8% and 11.8%, respectively, showing sustained reliance on government transfers. Residents in Coos County received an average of $17,581 in transfers per capita, with Carroll County and Sullivan County close behind at $14,854 and $13,114, respectively.

For comparison, the statewide average was 15.1% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $11,127 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 New Hampshire, reliance on government transfers was just 7.6% (or $1,772 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 15.1% (or $11,127 per capita) in 2022, reflecting a total increase of 7.5% 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 New Hampshire included:

• Social Security: $4,699 per capita (42.2% of total transfers)
• Medicare: $2,811 per capita (25.3% of total transfers)
• Medicaid: $1,828 per capita (16.4% of total transfers)
• Income Maintenance Programs: $622 per capita (5.6% of total transfers)

With 20% of the population aged 65 and older, New Hampshire 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 New Hampshire, reliance on government transfers has similarly increased from 7.6% (or $1,772 per capita) in 1970 to 15.1% (or $11,127 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.