In 2016, Vermont had total personal income of $31.4 billion.
This is the aggregate of personal net earnings (wages, salaries, business earnings etc.), interest, dividends and rent and personal current transfer receipts.
Transfer receipts include all forms of retirement, health care and welfare assistance, including Social Security, Medicare, Medicaid, food stamps, family assistance and all other welfare programs.
Composition of Personal Income
|Dividends, Interest & Rent||20%||18%|
|Personal Current Transfer Receipts||21%||17%|
Source: US Bureau of Economic Analysis (note: these are the BEA numbers and The Informed Vermonter doesn’t know why they don’t add up to 100%)
Low Wage State: Net earnings are a smaller proportion of total personal income in Vermont compared to the USA as a whole despite a much lower unemployment rate.
High Transfer Payments: Transfer payments are a much higher proportion of personal income relative to the USA as a whole. Much of this difference is a result of the high proportion of Vermont’s population aged 65 and older, driving higher social security and Medicare payments. A more generous welfare system also contributes, which will be discussed by The Informed Vermonter under Human Services: Welfare.