Delaware’s Transfer Dependency in 2022 vs 1970: Shocking analysis

John Lettieri, President and CEO of Economic Innovation Group | Official Website

By First State Times

Mar 25, 2025

In 2022, government transfers accounted for 21.9% of total income in Delaware, an alarming 16% surge from 5.9% in 1970, and a 3.3% increase over 2012’s 18.6%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $13,866 per resident in 2022, up from $9,998 in 2012 and $1,627 in 1970.

Among Delaware’s counties, Kent County saw the largest increase in transfer dependency over the past 10 years, surging 3.9% from 22.6% in 2012 to 26.5% in 2022, and up 20.5% from just 6% in 1970. In dollar terms, government transfers per capita in Kent County jumped from $9,856 in 2012 to $13,543 in 2022, a stark contrast to the $1,400 recorded in 1970.

New Castle County followed with the second-largest increase in transfer dependency, increasing 3.3% from 15.6% in 2012 to 18.9% in 2022, and an overall increase of 13.5% from 1970’s 5.4% transfer dependency. This trend is reflected in per capita amounts, with residents of New Castle County receiving an average of $12,524 in transfer income in 2022, up from $9,075 in 2012 and more than double the $1,400 recorded in 1970.

Additionally, Kent County had the highest percentage of income derived from government transfers, at 26.5% in 2022, making it the county with the highest overall transfer dependency. Sussex County and New Castle County followed closely behind, with transfer dependency rates of 26.4% and 18.9% in 2022, respectively.

Compared to 1970, Kent County increased by 20.5%, while Sussex County and New Castle County have increased by 17.6% and 13.5%, respectively, showing sustained reliance on government transfers. Residents in Kent County received an average of $13,543 in transfers per capita, with Sussex County and New Castle County close behind at $17,120 and $12,524, respectively.

For comparison, the statewide average was 21.9% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,866 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 Delaware, reliance on government transfers was just 5.9% (or $1,627 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 21.9% (or $13,866 per capita) in 2022, reflecting a total increase of 16% 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 Delaware included:

Social Security: $4,688 (33.8% of total transfers)
Medicare: $3,229 (23.3% of total transfers)
Medicaid: $3,225 (23.3% of total transfers)
Income Maintenance Programs: $1,281 (9.2% of total transfers)

With 20.6% of the population aged 65 and older, Delaware 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 Delaware, reliance on government transfers has similarly increased from 5.9% (or $1,627 per capita) in 1970 to 21.9% (or $13,866 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.

Government Transfer Trends by County in Delaware, 2022