John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
In total, residents in Kauai County received $934.1 million in government transfers, which accounted for 22.3% of total county income.
Comparatively, across all counties in Hawaii, government transfer payments totaled $16.2 billion, making up 18.2% of the state residents’ total income, with an average of $11,236 per resident.
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).
Breaking down the contributions in Kauai County at the time, Social Security transfers totaled $317.9 million, amounting to $4,307 per capita, or 34% of total government transfers. Medicare transfers accounted for $203.1 million ($2,752 per capita), representing 21.7% of the total. Medicaid contributed $232.1 million ($3,144 per capita), making up 24.8% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $110 million ($1,490 per capita), or 11.8% of the total.
With 22.5% of the population aged 65 and older, Kauai County has a significant demand for programs like Social Security and Medicare. Total per capita income excluding government transfers in Kauai County was $44,042, far below the county’s total income of $56,697, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Kauai County saw a decrease of 24.3% in per capita government transfers, from $16,715 to $12,656 per capita.
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 8.21% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.63% (or $11,542 per capita) in 2022. In Kauai County, reliance on government transfers has similarly increased from 7.38% (or $1,771 per capita) in 1970 to 22.3% (or $12,656 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Per Capita Transfers ($) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers ($) | Medicare Transfers ($) | Medicaid Transfers ($) | Income Maintenance Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Hawaii County | 1 | $13,412 | 27.11% | 23.79% | $906,201,000 | $595,007,000 | $551,728,000 | $466,722,000 |
| Kauai County | 2 | $12,656 | 22.32% | 22.45% | $317,872,000 | $203,148,000 | $232,079,000 | $109,994,000 |
| Honolulu County | 3 | $10,759 | 16.57% | 19.64% | $3,606,951,000 | $2,272,869,000 | $2,064,369,000 | $1,394,514,000 |
| Maui + Kalawao County | 4 | $10,755 | 17.81% | 0% | $635,016,000 | $406,800,000 | $346,239,000 | $229,674,000 |
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