John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among South Dakota’s counties, Buffalo County saw the largest increase in transfer dependency over the past 10 years, surging 9.6% from 33.2% in 2012 to 42.8% in 2022, and up 33.5% from just 9.3% in 1970. In dollar terms, government transfers per capita in Buffalo County jumped from $10,516 in 2012 to $15,128 in 2022, a stark contrast to the $1,683 recorded in 1970.
Potter County followed with the second-largest increase in transfer dependency, increasing 8.5% from 6.9% in 2012 to 15.4% in 2022, and an overall increase of 5.8% from 1970’s 9.6% transfer dependency. This trend is reflected in per capita amounts, with residents of Potter County receiving an average of $13,023 in transfer income in 2022, up from $9,400 in 2012 and more than double the $1,683 recorded in 1970.
Additionally, Oglala Lakota County had the highest percentage of income derived from government transfers, at 45% in 2022, making it the county with the highest overall transfer dependency. Buffalo County and Todd County followed closely behind, with transfer dependency rates of 42.8% and 42.4% in 2022, respectively.
Compared to 1970, Oglala Lakota County increased by 23.8%, while Buffalo County and Todd County have increased by 33.5% and 30%, respectively, showing sustained reliance on government transfers. Residents in Oglala Lakota County received an average of $16,063 in transfers per capita, with Buffalo County and Todd County close behind at $15,128 and $15,184, respectively.
For comparison, the statewide average was 15.7% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $10,713 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 South Dakota, reliance on government transfers was just 9.2% (or $1,821 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 15.7% (or $10,713 per capita) in 2022, reflecting a total increase of 6.5% 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 South Dakota included:
- Social Security: $3,834 (35.8% of total transfers)
- Medicare: $2,629 (24.5% of total transfers)
- Medicaid: $1,430 (13.4% of total transfers)
- Income Maintenance Programs: $1,327 (12.4% of total transfers)
With 18% of the population aged 65 and older, South Dakota 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 South Dakota, reliance on government transfers has similarly increased from 9.2% (or $1,821 per capita) in 1970 to 15.7% (or $10,713 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.
| County | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Aurora County | 18.2% | 3.3% | 7.9% | $10,730 | $3,485 | $9,012 |
| Beadle County | 18.1% | 2.8% | 9.2% | $10,542 | $2,596 | $8,614 |
| Bennett County | 28.7% | 1% | 16.3% | $13,953 | $4,089 | $11,770 |
| Bon Homme County | 19.2% | 1.6% | 7.9% | $10,466 | $2,781 | $8,542 |
| Brookings County | 13.2% | 2.7% | 5.3% | $7,422 | $2,291 | $6,140 |
| Brown County | 14.2% | 1.5% | 5.6% | $10,173 | $2,721 | $8,407 |
| Brule County | 16.5% | 0.3% | 7.8% | $10,627 | $2,667 | $8,905 |
| Buffalo County | 42.8% | 9.6% | 33.5% | $15,128 | $4,612 | $13,445 |
| Butte County | 24.4% | 5.4% | 14.7% | $11,679 | $4,287 | $9,750 |
| Campbell County | 14.5% | -1.5% | 5.7% | $11,838 | $3,277 | $10,172 |
| Charles Mix County | 23.5% | 2.9% | 13.4% | $12,675 | $2,985 | $10,924 |
| Clark County | 12.9% | -0.5% | 1.8% | $9,922 | $1,977 | $7,829 |
| Clay County | 17% | 0.1% | 10% | $8,230 | $1,649 | $6,912 |
| Codington County | 15.4% | 1.4% | 5.7% | $10,402 | $3,132 | $8,443 |
| Corson County | 30.8% | 5.4% | 17.8% | $12,764 | $3,285 | $10,802 |
| Custer County | 23.2% | 4.8% | 9.6% | $14,538 | $5,684 | $11,815 |
| Davison County | 18.1% | 2.5% | 7% | $11,263 | $3,247 | $9,125 |
| Day County | 20.6% | 1.8% | 6.9% | $14,712 | $4,379 | $12,401 |
| Deuel County | 16.6% | 2.5% | 5% | $10,917 | $2,122 | $9,077 |
| Dewey County | 27.8% | 4.6% | 18% | $15,130 | $4,176 | $13,580 |
| Douglas County | 17.8% | 3% | 7.8% | $13,152 | $4,097 | $11,454 |
| Edmunds County | 11.1% | -2.2% | -0.2% | $10,258 | $2,312 | $8,188 |
| Fall River County | 34% | 8% | 21.3% | $18,578 | $5,980 | $15,791 |
| Faulk County | 15.4% | 0.9% | 4% | $13,640 | $3,688 | $11,323 |
| Grant County | 17.4% | 1.9% | 7.2% | $12,264 | $3,907 | $10,430 |
| Gregory County | 23.4% | 0.4% | 11.7% | $14,244 | $3,755 | $12,044 |
| Haakon County | 16.4% | 1.2% | 9.1% | $12,759 | $4,940 | $11,025 |
| Hamlin County | 14.5% | 1.4% | 0.5% | $9,225 | $2,751 | $6,997 |
| Hand County | 12.7% | -0.6% | 4.9% | $10,857 | $2,454 | $9,151 |
| Hanson County | 16.6% | -1.5% | 6.8% | $13,071 | $320 | $11,496 |
| Harding County | 15.1% | 7% | 9.2% | $7,762 | $2,478 | $6,391 |
| Hughes County | 16.3% | 4.4% | 9.8% | $10,433 | $3,652 | $8,809 |
| Hutchinson County | 15.9% | -0.2% | 5.9% | $11,636 | $2,476 | $9,724 |
| Hyde County | 16.3% | 3.9% | 7.4% | $13,052 | $4,828 | $11,191 |
| Jackson County | 31.5% | 3.6% | 20.6% | $13,928 | $5,253 | $11,895 |
| Jerauld County | 24.7% | 5.7% | 13.6% | $18,017 | $7,097 | $15,971 |
| Jones County | 14.3% | 2.3% | 8.9% | $11,344 | $3,223 | $9,725 |
| Kingsbury County | 16.5% | 1.6% | 3.3% | $12,245 | $3,531 | $9,776 |
| Lake County | 15% | -1.1% | 4.3% | $10,999 | $1,553 | $9,138 |
| Lawrence County | 18.2% | 2.6% | 8.4% | $12,355 | $4,266 | $10,630 |
| Lincoln County | 7.2% | 1.2% | -0.8% | $6,016 | $1,995 | $4,317 |
| Lyman County | 19.9% | 3.4% | 12.4% | $11,518 | $2,712 | $9,868 |
| McCook County | 14.5% | 0.1% | 2.7% | $10,622 | $2,922 | $8,741 |
| McPherson County | 17.6% | 1.5% | 8.4% | $12,757 | $3,170 | $11,058 |
| Marshall County | 15.1% | 1.1% | 2.6% | $11,217 | $3,097 | $8,999 |
| Meade County | 18.5% | 4% | 12.6% | $9,884 | $2,897 | $8,559 |
| Mellette County | 31.9% | 1.8% | 18.3% | $14,481 | $4,496 | $12,049 |
| Miner County | 17.2% | -1.4% | 4.4% | $12,487 | $3,691 | $10,295 |
| Minnehaha County | 13.2% | 1% | 5.5% | $9,501 | $2,269 | $7,737 |
| Moody County | 14.9% | 2.5% | 5.4% | $9,890 | $2,690 | $8,329 |
| Oglala Lakota County | 45% | 2.4% | 23.8% | $16,063 | $4,395 | $14,180 |
| Pennington County | 18.8% | 2.3% | 12% | $13,016 | $3,936 | $11,409 |
| Perkins County | 24.1% | 6% | 15.7% | $13,042 | $4,254 | $11,266 |
| Potter County | 15.4% | 8.5% | 5.8% | $13,023 | $3,623 | $11,065 |
| Roberts County | 23.1% | 2.4% | 8.5% | $12,054 | $3,080 | $9,783 |
| Sanborn County | 17.3% | 2.1% | 4.3% | $11,042 | $3,878 | $8,728 |
| Spink County | 20.8% | 2.3% | 10.2% | $18,057 | $5,314 | $15,899 |
| Stanley County | 13.9% | 4.5% | 7.5% | $11,371 | $4,887 | $9,932 |
| Sully County | 8.9% | 2.6% | 3.4% | $9,050 | $2,340 | $7,742 |
| Todd County | 42.4% | 6% | 30% | $15,184 | $4,735 | $13,713 |
| Tripp County | 20.7% | 1.7% | 12.2% | $13,620 | $3,694 | $11,877 |
| Turner County | 14.5% | -0.6% | 3.1% | $10,318 | $2,296 | $8,294 |
| Union County | 7.4% | 1.1% | -2.5% | $9,048 | $2,295 | $7,009 |
| Walworth County | 22.6% | 2.9% | 11.1% | $14,174 | $3,923 | $12,064 |
| Yankton County | 16.1% | 0.2% | 7.3% | $10,995 | $3,077 | $9,304 |
| Ziebach County | 33.5% | 4% | 21.5% | $11,283 | $4,615 | $9,688 |
Alerts Sign-up