Rep. David Schweikert (R-AZ-01) gave a brief rundown on the state of his constituents’ financial well-being under Biden before Congress on Tuesday.
Schweikert said that his district consists of some of the more well-off, educated, and entrepreneurial constituents in Arizona and the country. Yet, Schweikert says his more “prosperous” district has become poorer even when accounting for factors like wage growth.
“In my district, we’ve had the highest inflation in the continental United States. If you do not make 23.6 percent more money today than you did the day President Biden took office, you are poorer,” said Schweikert.
Want to understand why the public isn’t so bubbly about the economy?
If you live in the Phoenix-Scottsdale area and haven’t received a 23.6% pay increase since President Biden took office, you are poorer today.
Schweikert’s district spans a northeast section of Phoenix that encompasses Scottsdale, Paradise Valley Fountain Hills, Cave Creek, the Salt River and Fort McDowell Yavapai Nation reservations, and part of the Tonto National Forest.
The congressman went on to say that his fellow congressmen, dubbed “the clown show,” needed to have “an honest conversation” with constituents to acknowledge that they’ve grown poorer in recent years.
Arizona experienced the highest inflation rates since February 2021, only returning to a lower rate of 2.7 percent earlier this year, last seen March 2021.
Both Arizona State University business professor and Carey School director Mark Stapp and University of Arizona economics center director George Hammond toldCronkite News last year that the reason for Arizona having the highest inflation — mainly Phoenix — has to do with shelter costs.
Arizona’s high growth rate, coupled with the lack of supply, prompted a rapid rise in housing and rent prices.
In 2022, the state boasted the highest inflation rate in the nation. At the time, the Phoenix area had a 13 percent inflation, much higher than the nationwide inflation rate at the time of 8 percent.
Schweikert has repeatedly urged his colleagues to curb inflation, last month pointing out the effects of the record levels of spending under the Biden administration. Schweikert projected that the total deficit spending for the 2024 fiscal year will be higher than both the Congressional Budget Office (CBO) and Office of Management and Budget (OMB) have projected.
Over the past three years, Arizona’s food banks have reported an unprecedented increase in the number of clientele they’re serving. The Arizona Food Bank Network reported earlier this year that it and its member food banks have served 14 percent more individuals in 2023 than in 2022 (a total of nearly 570,000 people a month), and 20 percent more than before the pandemic.
Conversely, the census reported that 12.5 percent of Arizonans were living in poverty in 2023 — the lowest rate in the past decade.
Schweikert hasn’t been the only one of Arizona’s congressmen to criticize federal leaders’ approach to handling inflation. Congressman Andy Biggs (R-AZ-05) remarked during President Joe Biden’s State of the Union last month that the overall inflation rate had hit nearly 20 percent since 2021, costing Arizonans nearly $13,000 in 2023 according to the Joint Economic Committee.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Rep. Andy Biggs (R-AZ) says “Bidenomics” is to blame for the surging gas prices in his district, the fifth congressional district.
According to Biggs, “Bidenomics” includes a “war on domestic energy,” meaning the oil and gas industry.
The average gas price in Arizona, per AAA, sits at about $4 per gallon, a steady rise from prices over the last month but a slight decline from the average last year, when prices hit about $4.30 a gallon.
Arizona’s averages have consistently sat higher than the national averages over the past year.
“Biden’s war on domestic energy hits Americans in the pocketbook. Gas is over $4.00/gallon in my district!” said Biggs. “Arizonans are suffering thanks to Bidenomics.”
Biden's war on domestic energy hits Americans in the pocketbook.
The highest-ever recorded average for gas prices in Arizona was nearly $5.40 in the summer of 2022.
AAA has attributed the recent steady rise in gas prices to the increase in oil prices. Crude oil hit over $10 per barrel earlier this year, attributed to Ukrainian attacks on Russian oil infrastructure and increased conflicts in the Middle East.
The Biden administration has reportedly urged Ukraine to cease its attacks on Russian oil refineries, out of concern for rising gas prices. However, Ukraine President Volodymyr Zelensky has dismissed those requests from U.S. officials, telling The Washington Post that the U.S. lacks authority to dictate his military strategy.
“We used our drones. Nobody can say to us you can’t,” said Zelensky.
Mapping of gas prices nationwide reflects a trend for prices to be highest around the West Coast, lowest around the midsection of the country, and slightly higher again around the East Coast.
Another factor for the upward surge in gas prices relates to the Biden administration’s increased pressures on oil and gas production — such as the plan announced last fall to scale back leasing for offshore oil and gas drilling — in an attempt to increase American reliance and support for “clean energy” alternatives.
Biden campaigned on the promise to abolish the oil industry, and “end fossil fuel.” His first executive order laid some of the framework to fulfill that promise, such as imposing a moratorium on certain oil and natural gas leasing activities, and directing agencies to revise fuel and emissions standards for vehicles.
On Thursday, the Biden administration announced $20 billion in grants to private companies for clean energy initiatives.
On Wednesday, the Department of Energy canceled two purchases to refill the Strategic Petroleum Reserve (SPR). Agency officials indicated a desire to avoid buying back oil above its target price of $79 per barrel, since the cost per barrel is around $87.
The Biden administration has depleted the SPR by about 45 percent.
Last month, the Biden administration announced stricter emissions standards for heavy-duty vehicles such as freight trucks and buses. Available technologies to meet their new emissions standards include the advanced internal combustion engine vehicles, hybrid vehicles, plug-in hybrid electric vehicles, battery electric vehicles, and hydrogen fuel cell vehicles.
In January, the White House paused permitting on liquified natural gas (LNG) exports.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
The Arizona Diamondbacks and the City of Phoenix are hoping for another extended postseason run from the boys of summer in 2024.
Just before the D-Backs kicked off their new season, Arizona State University’s Seidman Research Institute conducted a study to find the economic impact of the home team’s 2023 postseason run. The study found that the economic windfall was $107.6 million.
According to a recent study, their postseason success contributed $107.6 million to the state's GDP. A total of 336,370 fans attended the seven 2023 postseason games.https://t.co/KDSejFPfuT
The study revealed that there were 336,370 individuals who attended D-Backs home playoff games during the National League Division Series against the Dodgers, the National League Championship Series against the Phillies, and the World Series against the Rangers. Most of those fans resided in the Valley, but outside of the City of Phoenix (63.4%). 21.3% of the attendees traveled from another state to watch baseball in the desert.
Bars and restaurants in downtown Phoenix observed a substantial economic boon during the D-Backs surprising playoff run. According to the analysis of the study from Downtown Phoenix Inc, “Sales at bars and restaurants Downtown were up 30.7% during home playoff games compared to non-playoff game nights,” and “17.8% of playoff game ticket holders visited a Downtown bar or restaurant before entering Chase Field and 28.2% visited a Downtown bar or restaurant post-game.”
Due to the increased number of out-of-town travelers to the City and State, hotels in the area also experienced an economic fortune. Downtown Phoenix Inc analysis stated that “total hotel revenue for seven home playoff games played at Chase Field was $625,422 more than the average daily collection for the 25 non-playoff game nights in October 2023.”
Both Downtown Phoenix Inc. and the City of Phoenix’s Community & Economic Development Department commissioned the study from the university research institute.
The Arizona Diamondbacks opened their season on Thursday, March 28, winning their first game in historic and decisive fashion, 16-1. The team started the 2024 campaign with a record payroll, thanks, in large part, to the extended 2023 postseason run. They hope to reciprocate that effort yet again later this fall, giving the team and its surrounding partners another windfall in October and November.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Inflation hasn’t discouraged Americans from spending to celebrate the upcoming Easter holiday. Analysts project a spending total surpassing $22 billion, with consumers explaining to them that Easter is an important tradition.
Despite record inflation and consumer goods increasing in price by more than double over the past several years, it appears that Americans still feel the holiday of hope and new life is worth the expense.
The projections come from the annual survey by the National Retail Federation (NFR) and Prosper Insights & Analytics (PIA). In a press release, NRF President and CEO Matthew Shay explained that Easter maintained its positive meaning for Americans.
“Each year, Americans look forward to the celebration of Easter and the renewal of time and traditions with loved ones,” said Shay.
NRF surveys date back to 2003. This year’s survey spanned about 8,400 adult consumers from March 1 to 6 with a margin of error plus one or minus 1.1 percent. A majority of Americans (81 percent) said they would celebrate Easter.
64 percent of consumers told survey analysts that they remain inspired to shop for Easter-related items because it’s tradition for them. The next-highest popular reason concerned spending time with family or friends (32 percent), while a close third (29 percent) shopped to capitalize on sales and promotions.
These projections account for food, clothing, and gifts in general. Respondents said they would spend an average of $177 per person. Unsurprisingly, the top-reported expenditures were equally candy and food, followed by general gifts, then clothing, then decorations.
Last year’s Easter shoppers set the record high at $24 billion, with about $190 spent per person.
Back in 2007, shoppers spent $14.5 billion. The 2008 recession did cause a decline in Easter shopping for several years; it wouldn’t be until 2011 that Americans would surpass 2007 Easter spending.
The annual survey also gauged how consumers planned to spend their Easter weekend. 57 percent mentioned cooking a holiday meal, 53 percent mentioned visiting friends and family, and 43 percent mentioned going to church. Only half of households with children planned to conduct an Easter egg hunt at home.
Discount stores were top of the list for Easter shopping destinations (53 percent), followed by department stores (40 percent), online retail (33 percent), local/small businesses (22 percent), and specialty stores (20 percent).
There were those surveyed who shared that they would not be celebrating Easter. 55 percent of that demographic said they would still take advantage of Easter sales, but would spend much less per person, around $20. The capture of their market has to do with how stores advertise and curate a shopping experience, explained PIA Vice President of Strategy Phil Rist in the NRF press release.
“The overall shopping experience itself also plays a role in purchasing behavior,” said Rist. “This year almost one-quarter of consumers said they were inspired to shop for Easter items from store displays and decorations as well as exclusive or seasonal products.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Home builders are warning that Gov. Katie Hobbs’ moratorium on home building will hurt the state’s economy severely.
The Home Builders Association of Central Arizona (HBACA) cited a recent study by Elliott Pollack, a Scottsdale-based real estate and economic consulting firm.
“From an economic perspective, the sudden and drastic measures announcing no new certifications of assured water supply from groundwater created uncertainty and risk, an effective deterrent to potential investors in our state’s economy,” read the study. “The prevailing sentiment that Arizona is out of water is now a significant hurdle that requires educating all future potential investment in our State.”
The study projected that the governor’s moratorium on new builds, imposed last June by ceasing certifications of assured water supply, could cost the Phoenix area over 26,000 jobs over the next decade. That, along with a projection that the moratorium would exacerbate the state’s affordable housing crisis.
Hobbs issued the moratorium in response to an Arizona Department of Water Resources (ADWR) report projecting a 100-year deficit of four percent in groundwater for the greater Phoenix area.
I unveiled the latest study of groundwater conditions across the Phoenix metropolitan area. Families and businesses from around the world come to Arizona in part because we are serious about water management, and that we are the leader in safeguarding groundwater supplies. ⬇️1/4
— Governor Katie Hobbs (@GovernorHobbs) June 1, 2023
Assured water supply requires demonstration that developers have a plan to use groundwater in compliance with water management rules set by the ADWR and facilitated by the Central Arizona Groundwater Replenishment District (CAGRD).
After ADWR allowed CAGRD membership to meet the renewable water management obligations in 1995, an estimated 460,000 homes were built, bringing in over 1.2 million residents. CAGRD’s existence ensured that water providers and landowners wouldn’t be on the hook for assuring the 100-year renewable water supply up front.
After the ADWR rule change concerning CAGRD, Elliott Pollack reported that the state brought in $50.4 billion in wages and $135.7 billion in economic impact. CAGRD region residents also spent over $180 billion in the local economy, and contributed over $35 billion in tax revenues.
According to a long-term forecast by the Maricopa Association of Governments (MAG), one out of seven newly built homes would be in Buckeye by 2030, with an estimated 14 percent of new builds cropping up in the city through 2060. That’s up to 3,700 new builds annually on average. However, Elliott Pollack said that this long-term forecast wouldn’t come to fruition under Hobbs’ moratorium — meaning, the expectation of the economy-boosting annual influx of around 10,000 new residents wouldn’t occur.
The study further projected the moratorium could cause mass out-of-state migration by escalating home prices in formerly affordable housing regions, with the supply of homes under $400,000 dwindling or ceasing to exist altogether. The median home price in Arizona sits at around $434,000.
Mortgage rates would demand a minimal income of about $100,000 to afford a $400,000 home. Census data estimated that around 40 percent of the greater Phoenix area’s population made $100,000 or more as of 2022, and further estimated median household income to be about $72,000.
That means about 60 percent of the area wouldn’t be able to afford a home in the area.
The study also found that most out-of-state migration from Arizona was to cities with more affordable homes. Out of nearly 30 cities analyzed, 25 had median home prices more affordable than Arizona’s.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
The U.S. Air Force has plans that are expected to further devastate Tucson’s economy.
The Air Force plans to divest the entire fleet of A-10 aircraft within the next three to five years. Pilots and maintainers at Davis-Monthan will move onto the extraordinarily expensive F-35 aircraft due to the divestment, the Arizona Daily Independent reported.
The Davis-Monthan Air Force Base, where the A-10 “Warthog” ground-attack jets are stationed, hosts more than 10,000 airmen and civilian employees and contributes nearly $1 billion to the Tucson-area economy annually.
Fans of the A-10 will have one of their last opportunities to see the Warthog up close at the Luke Days 2024 airshow March 23-24.
The Air Force announced that after nearly 50 years at Davis-Monthan Air Force Base, the 355th Wing had begun divesting its fleet of A-10 Thunderbolt II aircraft in February of this year.
Some say the Air Force has sought divestment of the A-10 Thunderbolt II aircraft for years because it is an economical and effective aircraft and does not benefit defense contractors.
Arizona representatives sought to save the aircraft in May 2021 after a Biden administration budget plan called for the retirement of the Warthogs. Six Arizona Democrats — Sens. Mark Kelly and Kyrsten Sinema, and Reps. Ann Kirkpatrick, Ruben Gallego, Tom O’Halleran and Greg Stanton — and Republican Rep. Debbie Lesko vowed to oppose the A-10 retirement plans. They cited its unique role in close air support of ground troops and lack of any near-term replacement for that mission.
“Removing A-10s from the fleet when there is not another aircraft capable of performing this mission takes a vital tool away from our military and is the wrong step for our national security,” said Kelly, a former Navy combat pilot who sits on the Senate Armed Services Committee.
The A-10C Demonstration Team has performed for more than 40 years with dozens of pilots and teams at hundreds of air shows across multiple countries.
Pima County Board of Supervisors candidate John Backer served as an A-10 electrician in the 1980s.
“Having been blessed with first-hand experience of working on the airplane, I understand completely what a unique air frame the A-10 remains to this day,” he said. “Through the years, countless Marines and Army soldiers have shared their love, respect, and gratitude for the A-10 – a majority feel the A-10 directly saved their lives.”
Though the base is reportedly bringing in additional missions, Backer said the Warthogs will be hard to replace due to their Close Air Support capabilities and financial impact for Pima County.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
