Trend of transfer payments into Spokane County

Please read this first: “Transfer Payments in to Spokane MSA as of 2008“.

For additional information, also read the comments to that post.

Here is a chart showing the longer term trend in transfer payments and the role they now play in Spokane’s economy. As can be seen, transfer payments (payments received for other than current products or services rendered) now represent about 20% of the Spokane area’s income.

Per the linked post, this is primarily government payments for various benefits programs and does not include salaries for government workers.

Data source: Washington Economic Analysis Project.

Transfer income payments show some correlation with past recessions. Note the drop off after the 1973-1975, 1980-1981, and 1990-1991 recessions, and then the rise in about the year 2000 and again in 2007 for those recessions. Recessions lead to layoffs and unemployment compensation, which is a temporary transfer payment, but they also lead to older workers being forced into retirement, which may semi-permanently increase retirement benefits for the long term.

We did not see the expected drop off in transfer payments after the 2000-2001 recession, which supports my hypothesis that the Spokane area economy is no longer recovering from recessions like it used to.

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4 Responses to Trend of transfer payments into Spokane County

  1. Pingback: 38% of Spokane’s wages and salary come from the government or health care « Spokane Economic And Demographic Data

  2. Pingback: Much of Spokane’s population qualifies for government assistance « Spokane Economic And Demographic Data

  3. Pingback: Spokane County average wages « Spokane Economic And Demographic Data

  4. Pingback: Spokane becoming major retirement community « Spokane Economic And Demographic Data

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