If those people move away, their money goes with them. Put simply, transfer payments are state and federal entitlements paid out to individuals. Social Security, Medicare, food stamps, veterans' benefits, and unemployment compensation are some of the biggest transfer payment programs. In eastern South Dakota, retirement and medical programs like Social Security and Medicare account for more than 80 percent of total transfer payments. Knowing that, we begin to see how a decline in our senior population affects the economics of the area.
Dollars brought in as transfer payments are dollars that help our economy.
As seen in the chart below, the dollar amount brought to Miner County through transfer payments has actually risen in the last ten years. Between 1990 and 1997, it rose nearly 38.8 percent. That's encouraging, but it's significantly smaller than the increases in surrounding counties, most of which have seen jumps of about 50 percent. From there the numbers keep falling into line, and the conclusions are not hard to draw. The reason our transfer payments haven't increased as much as surrounding counties is that our elderly population is shrinking faster than our other age groups.