The Great Transfer-mation
Not long ago, money from government programs like Social Security or SNAP — known as transfers — featured minimally in Americans’ personal income.
Today, the majority of counties rely on transfers for a significant portion of their income, while low-transfer places have gone from the norm to nearly extinct.
Americans derive their income from three main sources: work, investments, and transfers. Transfer income comes from government programs, such as Social Security, Medicare, and veterans benefits.
In 2022, Americans received $3.8 trillion in transfer income from the government. If that were split evenly across the entire US population, it would be about $11,500 per person.
Three main forces are fueling the Great Transfer-mation: an aging population, rapidly rising healthcare costs, and growth in other earnings that just hasn’t kept up.
The number of Americans older than 65 rose by nearly 17 million from 2010 to 2022. One in six Americans is now over 65, up from 1 in 10 in 1970.
