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Saturday, March 29, 2025

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

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

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

In 2022, government transfers accounted for 23.9% of total income in Louisiana, a 14.7% rise from 9.2% in 1970, and a 5.3% increase over 2012’s 18.6%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $13,019 per resident in 2022, up from $9,272 in 2012 and $1,727 in 1970.

Among Louisiana’s parishes, Iberia saw the largest increase in transfer dependency over the past 10 years, surging 13.4% from 19.9% in 2012 to 33.3% in 2022, and up 23.9% from just 9.4% in 1970. In dollar terms, government transfers per capita in Iberia jumped from $9,692 in 2012 to $15,005 in 2022, a stark contrast to the $1,473 recorded in 1970.

East Carroll followed with the second-largest increase in transfer dependency, increasing 13% from 29.7% in 2012 to 42.7% in 2022, and an overall increase of 24.3% from 1970’s 18.4% transfer dependency. This trend is reflected in per capita amounts, with residents of East Carroll receiving an average of $15,358 in transfer income in 2022, up from $13,403 in 2012 and more than double the $1,473 recorded in 1970.

Additionally, Franklin had the highest percentage of income derived from government transfers, at 43.4% in 2022, making it the parish with the highest overall transfer dependency. Morehouse and East Carroll followed closely behind, with transfer dependency rates of 43.1% and 42.7% in 2022, respectively.

Compared to 1970, Franklin increased by 25.5%, while Morehouse and East Carroll have increased by 27.6% and 24.3%, respectively, showing sustained reliance on government transfers. Residents in Franklin received an average of $16,856 in transfers per capita, with Morehouse and East Carroll close behind at $18,324 and $15,358, respectively.

For comparison, the statewide average was 23.9% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,019 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 Louisiana, reliance on government transfers was just 9.2% (or $1,727 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 23.9% (or $13,019 per capita) in 2022, reflecting a total increase of 14.7% 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 Louisiana included:

  • Social Security: $3,537 (27.2% of total transfers)
  • Medicare: $3,080 (23.7% of total transfers)
  • Medicaid: $3,476 (26.7% of total transfers)
  • Income Maintenance Programs: $1,667 (12.8% of total transfers)

With 16.8% of the population aged 65 and older, Louisiana 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 Louisiana, reliance on government transfers has similarly increased from 9.2% (or $1,727 per capita) in 1970 to 23.9% (or $13,019 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 Parish in Louisiana, 2022
ParishDependency on Transfers (%)Change Since 2012Change Since 1970Per Capita Amount (2022)Per Capita Change Since 2012Per Capita Change Since 1970
Acadia31.4%9.8%18.4%$14,320$4,997$12,497
Allen30.8%5.7%15%$13,073$4,146$10,819
Ascension15.5%3.1%6.9%$9,385$2,713$7,949
Assumption24.5%4.8%12.4%$13,683$4,140$11,997
Avoyelles36.5%8.8%16.9%$16,037$4,169$13,622
Beauregard27.3%7.2%16.4%$13,800$4,471$11,876
Bienville39.6%7.1%22.9%$17,874$5,199$15,512
Bossier22.2%4.8%16%$11,828$3,368$10,602
Caddo26.3%7.1%17.4%$15,176$5,123$13,255
Calcasieu22.8%3.2%14.2%$11,739$2,672$10,111
Caldwell40.2%8.3%20.4%$15,997$4,272$13,377
Cameron15.9%3.3%10%$9,999$3,583$8,970
Catahoula41.1%11.3%26.4%$17,732$5,974$15,959
Claiborne33.7%6.7%17.7%$14,823$3,976$12,539
Concordia38.4%10.6%27.2%$16,057$4,823$14,298
De Soto26.8%4%11.4%$14,217$4,001$11,838
East Baton Rouge19.6%4%13.5%$11,761$3,411$10,422
East Carroll42.7%13%24.3%$15,358$1,955$13,163
East Feliciana32%5.7%16.2%$15,064$3,622$13,002
Evangeline37.8%7.8%18%$15,203$3,583$12,775
Franklin43.4%9.5%25.5%$16,856$4,514$14,628
Grant32.6%5.8%16.3%$12,165$3,166$9,828
Iberia33.3%13.4%23.9%$15,005$5,313$13,532
Iberville28.1%4.9%14.5%$14,642$4,507$12,583
Jackson34.6%4.9%20.1%$14,573$3,398$12,342
Jefferson21.8%5.4%17.4%$12,765$3,734$11,731
Jefferson Davis26.4%3.9%14%$12,797$3,278$10,985
Lafayette18.9%6.8%12%$11,165$3,640$9,898
Lafourche22.9%7%16.4%$11,981$3,676$10,897
LaSalle35.4%8%19.2%$13,234$2,962$10,948
Lincoln23.4%2.5%12.8%$11,065$2,798$9,434
Livingston20.3%3.9%10.5%$9,979$2,556$8,393
Madison40.9%12.7%23.5%$17,304$6,632$14,997
Morehouse43.1%10.4%27.6%$18,324$4,849$16,023
Natchitoches29.4%3.2%13.1%$14,449$3,992$12,204
Orleans20.8%4.8%11%$12,788$3,945$10,609
Ouachita28.8%5.5%17.8%$13,535$3,631$11,720
Plaquemines19.6%5.8%13.6%$10,876$3,598$9,754
Pointe Coupee25.9%4.5%11.4%$14,816$4,566$12,797
Rapides30.1%4.8%18.7%$16,215$3,784$14,154
Red River30.5%3.2%13.7%$16,548$5,669$13,694
Richland37.8%8%22.2%$16,703$4,702$14,446
Sabine33%5.1%12.1%$15,494$4,775$12,863
St. Bernard28.1%6.2%22.5%$11,760$4,046$10,641
St. Charles19.2%5.9%12.1%$11,044$3,718$9,711
St. Helena31.7%2%17.8%$14,326$1,300$12,724
St. James23.7%5.2%14.2%$14,829$5,213$13,284
St. John the Baptist31.7%12.1%23.2%$14,491$5,400$13,193
St. Landry34.9%8%18.6%$16,632$4,596$14,670
St. Martin29.6%10%15.9%$13,284$4,320$11,549
St. Mary32.5%11.6%25.5%$15,189$5,036$13,982
St. Tammany16.1%2.1%8%$11,834$3,213$10,199
Tangipahoa29.2%3.8%13.2%$13,872$3,028$11,669
Tensas39%12.6%21.4%$18,406$6,142$16,085
Terrebonne28.6%11.8%22.8%$13,890$5,291$12,875
Union33.7%6%17.3%$16,487$5,319$14,191
Vermilion27.5%9.3%15.7%$12,891$4,300$11,204
Vernon25.6%8.4%21.8%$12,174$4,340$11,105
Washington41.7%6.9%29%$17,245$4,401$15,217
Webster34.3%6.7%22.4%$17,045$5,076$14,898
West Baton Rouge19.8%3.3%8.7%$10,863$2,681$9,218
West Carroll41.5%7.7%25.1%$17,114$4,845$14,961
West Feliciana19.3%3.7%9.9%$8,823$2,711$7,753
Winn30.6%3.3%13.1%$14,528$3,554$12,124

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