New Mexico: Government transfers accounted for 26.5% of total income in 2022, up from 8.6% in 1970

In 2022, government transfers accounted for 26.5% of total income in New Mexico, an alarming 17.9% surge from 8.6% in 1970, and a 5.6% increase over 2012’s 20.9%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $13,842 per resident in 2022, up from $9,161 in 2012 and $1,723 in 1970.

Among New Mexico’s counties, Mora County saw the largest increase in transfer dependency over the past 10 years, surging 16.1% from 29.1% in 2012 to 45.2% in 2022, and up 18.5% from just 26.7% in 1970. In dollar terms, government transfers per capita in Mora County jumped from $14,498 in 2012 to $23,421 in 2022, a stark contrast to the $2,815 recorded in 1970.

Harding County followed with the second-largest increase in transfer dependency, increasing 14.4% from 17.8% in 2012 to 32.2% in 2022, and an overall increase of 21.3% from 1970’s 10.9% transfer dependency. This trend is reflected in per capita amounts, with residents of Harding County receiving an average of $14,871 in transfer income in 2022, up from $10,675 in 2012 and more than double the $2,815 recorded in 1970.

Additionally, Sierra County had the highest percentage of income derived from government transfers, at 51% in 2022, making it the county with the highest overall transfer dependency. San Miguel County and Guadalupe County followed closely behind, with transfer dependency rates of 48% and 45.7% in 2022, respectively.

Compared to 1970, Sierra County increased by 28.8%, while San Miguel County and Guadalupe County have increased by 28.8% and 31.9%, respectively, showing sustained reliance on government transfers. Residents in Sierra County received an average of $24,783 in transfers per capita, with San Miguel County and Guadalupe County close behind at $21,815 and $19,519, respectively.

For comparison, the statewide average was 26.5% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,842 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 New Mexico, reliance on government transfers was just 8.6% (or $1,723 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 26.5% (or $13,842 per capita) in 2022, reflecting a total increase of 17.9% 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 New Mexico included:

• Social Security: $3,830 per capita (27.7% of total transfers)
• Medicare: $2,517 per capita (18.2% of total transfers)
• Medicaid: $4,010 per capita (29% of total transfers)
• Income Maintenance Programs: $2,172 per capita (15.7% of total transfers)

With 19.3% of the population aged 65 and older, New Mexico 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 New Mexico, reliance on government transfers has similarly increased from 8.6% (or $1,723 per capita) in 1970 to 26.5% (or $13,842 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.