Increasing Personal Current Transfer Receipts in Maine
In my recent paper examining Maine’s personal income, I noted that personal current transfer receipts have recently reached 20 percent of personal income. Economists view transfers of 20 percent or more as a red flag. A red flag indicating that present and future economic growth potential is in jeopardy. Evidence? Look no further than the economic performance of the four states with transfers at a greater percentage of personal income than Maine’s–Louisiana (32.6 percent), Mississippi (26.9 percent), West Virginia (26.3 percent) and Arkansas (20.7 percent).
I also note that transfers are going to continue to increase its share of personal evidence. Evidence? Yesterday, the Congressional Budget Office released its new Budget and Economic Outlook–check out the graph on the first page . . . or click “continue reading.”