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."
