by Daniel Stefanski | Dec 4, 2023 | Economy, News
By Daniel Stefanski |
Americans are paying the price for an economy seemingly in decline.
A recent study, released by CBS News, showed that “the typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs.”
These numbers showed that Arizona has experienced the high-end of inflation and added cost-of-living expenses for residents. On average, Arizona households must spend $13,329 more than they did in January 2021. Only two states, Utah and Colorado, are ahead of Arizona.
One of the contributing factors to the higher costs of living in the Grand Canyon State might be the prices at gas pumps, which have consistently been more than many other states in America. Throughout 2023, Republicans at the Arizona Legislature have attempted to get to the bottom of the reasons for the above-average prices for gas. Earlier this fall, the Joint Legislative Ad Hoc Study Committee on Air Quality and Energy convened to hear from Michelle Wilson, the Regulatory Compliance Administrator for the Arizona Department of Weights and Measures.
After the hearing, the Committee issued a press release to publicize that Wilson “admitted the Hobbs Administration was passive when oil companies in March warned of refinery shutdowns,” adding “that according to Wilson, for the first time in five years, the Governor’s office received a request from refineries to ask the EPA for a waiver, allowing for an alternative fuel type to provide an adequate supply for drivers and preventing a hike in gas prices.” Yet after the Governor’s Office “had conversations with the EPA about submitting a request for a waiver, … the EPA convinced Hobbs to not submit one.”
“Rather than making a case on behalf of Arizonans struggling to fill their tanks with prices hitting $5 per gallon, Governor Hobbs chose to not push back against the EPA and was complicit with the Biden Administration’s pro-inflation, radical environmentalist agenda,” said Senator Sine Kerr, the Committee’s co-chair. “As a result of Hobbs’ inaction, Maricopa County drivers were forced to shell out an extra several hundred million dollars just to get to their destinations during this supply disruption.”
The national average for gas prices, as of November 29, is $3.246 for a regular gallon of gas, which is down from last year’s average of $3.521 at the same time. Arizona clocks in at above average at $3.490, down from $4.055 at this time in 2022.
The state’s cost of living is regarded as one of the country’s highest, regardless of the study used to compute the ranking. The MERIC 2022 Cost of Living Index shows Arizona as 37th (out of 50) while RentCafe has the state’s costs at six percent higher than the national average.
Arizona’s housing market is also a contributing factor to the state’s high cost of living. According to Redfin, the median sale price in Arizona is $438,000, compared to $414,633 for the entire U.S. market (as of October 2023).
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 20, 2023 | Economy, News
By Daniel Stefanski |
The state of the United States economy continues to concern experts and Americans alike.
Earlier this week, the latest Consumer Price Index (CPI) from the Bureau of Labor Statistics noted that the American economy had experienced a 3.2% increase in inflation over the past year.
EJ Antoni, a public finance economist for the Heritage Foundation, reacted to the revelation, saying, “October was the fourth consecutive month of inflation outpacing monthly earnings growth. For 27 of the last 31 months, prices have risen faster than annual earnings. This decline in real earnings coupled with elevated borrowing costs from today’s higher interest rates have cost a typical American family the equivalent of about $7,400 in annual income under the Biden administration.”
A recent poll from Global Strategy Group, which was conducted for the Financial Times and the University of Michigan’s Ross School of Business, showed that 61% of respondents disapproved of the way Biden was handling the economy, while 55% believed that they are worse off since the start of his presidency. The largest concern of the group appeared to be with price increases to food (74%), and 75% believed that rising prices would pose the most significant threat to the American economy over the next six months.
The White House broadcasted a different perspective to the most recent report from the Bureau, stating that the numbers show “more progress bringing inflation down, with annual inflation now down by 65% from the peak.”
President Biden added, “Inflation has come down while the unemployment rate has been below 4% for 21 months in a row—the longest stretch in more than 50 years—while wages, wealth, and the share of working-age Americans with jobs are all higher now than before the pandemic.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 18, 2023 | Economy, News
By Daniel Stefanski |
Americans are still paying a lot of money for their Thanksgiving meals this year.
This week, the American Farm Bureau released its report on the annual cost of Thanksgiving dinners. The numbers showed that the average cost in 2023 was $61.17, which was down slightly from 2022’s value of $64.05 – yet significantly higher than 2021 ($53.31) and also 25% more than 2019.
American Farm Bureau Federation President Zippy Duvall said, “While shoppers will see a slight improvement in the cost of a Thanksgiving dinner, high inflation continues to hammer families across the country, including the nation’s farmers. Growing the food families rely on is a constant challenge for farmers because of high fuel, seed, fertilizer and transportation costs, just to name a few.”
Duvall added, “While high food prices are a concern for every family, America still has one of the most affordable food supplies in the world. We’ve accomplished that, in part, due to strong farm bill programs. Although our focus is sharing time with family and friends this Thanksgiving, our thoughts also turn to encouraging Congress to double down on a commitment to passing a new farm bill with a modernized safety net to support those who raise the crops and livestock that supply Thanksgiving dinner and every dinner.”
The items comprising the makeup of this Thanksgiving dinner were turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, and a pumpkin pie with whipped cream.
According to the Bureau, the average prices of 16-pound turkeys fell 5.6% year-over-year to $27.35. A pack of one dozen dinner rolls was up 2.9% from 2022 to $3.84, and the cost of a 30-ounce can of pumpkin pie mix had increased 3.7% to $4.44.
The Bureau also expanded the menu for another cost estimate, adding boneless ham, Russet potatoes, and frozen green beans. This menu experienced a $23.58 price increase from the standard fare to top out at $84.75.
Where Americans live in the country also affects the prices they will pay for their Thanksgiving meal. Those in the western part of the nation experience above-average costs at $63.89 for the standard meal, while the expanded offering comes in at $87.75.
Prices for this survey were computed November 1-6, and were gathered from each state plus Puerto Rico.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 2, 2023 | Economy, News
By Daniel Stefanski |
Arizona Legislators have an opportunity this week to meet and greet with a Canadian delegation.
On Monday, Arizona State Representative David Cook announced that the Delegate General of Québec in Los Angeles, Mr. David Brulotte, would be visiting Arizona on Wednesday. Cook, the Chairman of the Arizona House International Trade Committee, also revealed there would be other Canadian business leaders and organizations comprising the delegation to the state.
According to the lawmaker’s release, “the visit from the Canadian delegation is the result of the successful recent Trade and Foreign Direct Investment Mission to Canada, demonstrating a commitment to fostering strong economic ties between Arizona and Canada.”
“We are honored to welcome Delegate General David Brulotte to Arizona,” said Chairman Cook. “This visit marks a pivotal moment in our ongoing efforts to strengthen the economic relationship between our state and Canada. We look forward to productive discussions and collaborative initiatives that will benefit both regions. The Arizona House Committee on International Trade remains dedicated to fostering an environment that encourages trade, investment, and international collaboration, and looks forward to continued progress in strengthening these ties.”
The Vice Chairman of the Committee, Representative Justin Wilmeth also weighed in on the forthcoming visit, saying, “The Arizona House Committee on International Trade is committed to facilitating trade and financial investment opportunities. We believe that this meeting with Mr. Brulotte is an important step in achieving our shared goals of increased cooperation and economic growth. We are excited to work together to build a brighter future for both Arizona and Québec.”
Earlier this year, Cook led a delegation of Arizona House members on a trade mission to Canada, with the goal of “strengthening the longstanding ties between Arizona and Canada, further enhancing economic collaboration, and paving the way for increased foreign direct investment (FDI).” The legislative members who were announced to be attending this trip were International Trade Committee Chairman David Cook (R-7), Vice Chairman Justin Wilmeth (R-2), and committee members Tim Dunn (R-25), Melody Hernandez (D-8), and Mariana Sandoval (D-23). Representative Michael Carbone (R-25) was also expected to join the delegation.
The objectives for September’s Canadian trip included “engaging with the US Embassy in Ottawa for a comprehensive trade brief and fostering discussions with economic development organizations from the provinces of Ontario and Quebec, and with the Ontario Legislature and economic leaders to explore trade and investment prospects.”
In April 2023, the bipartisan House International Trade Committee unanimously adopted a plan “for conducting international trade” – a notable feat, considering the partisan nature of many efforts at the Legislature during the 2023 session. The Committee shared that its objectives were “to strengthen bilateral ties with existing international partners, attract more foreign direct investment to a booming Arizona and extend Arizona’s international reach for enhanced captured value to sustain a robust growing economy.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 1, 2023 | Economy, News
By Daniel Stefanski |
A local team’s unexpected run to the pinnacle of the baseball world has given its city an economic boon.
The Arizona Diamondbacks weren’t expected to go too far during the 2023 Major League Baseball postseason, but the team has proven its doubters and detractors very wrong over the past few weeks, reaching the World Series for the first time since 2001. This journey through October provides an infusion of tens of millions of dollars to the City of Phoenix and the State of Arizona, giving the local economy millions of extra reasons to cheer on their team.
Glenn Farley, the Arizona Director of Policy & Research for the Common Institute, published a piece about the expected economic impact for the region based on the hometown team’s surge through the playoffs. He wrote that “because the events are unplanned and non-competitive, the typical costs associated with attracting and hosting a major event are largely missing during a World Series, and successful hosting depends on a cities natural economic base and infrastructure rather than disposable infrastructure developed specifically for the event.”
Farley pointed out that the State of Arizona’s sports and tourism sector “employs 167,000 people,” and that “those tourism and hospitality workers were already on hand to support visitors and consumers for the unexpected World Series windfall.”
The economic benefits of the World Series in Arizona follow a busier-than-normal year for the Valley’s national sports scene. Researchers from Arizona State University found that the January Fiesta Bowl for college football garnered $170 million, the February Phoenix Open for golf another $277 million, and the February Super Bowl for the NFL topped out at $1.3 billion. The first full Cactus League Spring Training season since 2019 also brought hundreds of millions of dollars to Arizona towns and cities. In addition, Arizona hosted an early round of the World Baseball Classic back in March.
Researchers also have shared that the two cities that hosted the World Series in 2022 earned $68 million and $78 million, respectively, from economic spending attached with their team’s individual trips to the Fall Classic.
In his post, Farley added, “The state’s impending successful hosting of a World Series, following a Super Bowl and during an ongoing recovery for the state’s conventions and tourism, is another opportunity to celebrate its success in cultivating a robust and diverse local economy – including young and healthy infrastructure, a large and perennial tourism industry, and an innovative approach to taxes and regulations that supports business development.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Oct 30, 2023 | Economy, News
By Daniel Stefanski |
Americans are spending lots of their money on Halloween festivities in 2023.
A recent study by the National Retail Federation (NRF) showed that there is likely to be $12.2 billion spent on Halloween this year in the United States. This number is an increase from last year’s figure of $10.6 billion.
Halloween spending has recovered from its decline during the COVID-marred year of 2020, where $8 billion was expected to leave the wallets of consumers.
The rise in spending tracks the statistics for the total number of people celebrating on the holiday. Seventy-three percent of Americans are expected to take part in some sort of celebration for Halloween, up from sixty-nine percent in 2022.
“More Americans than ever will be reaching into their wallets and spending a record amount of money to celebrate Halloween this year,” NRF President and CEO Matthew Shay said. “Consumers will be shopping early for festive décor and other related items and retailers are prepared with the inventory to help customers and their families take part in this popular and fun tradition.”
Phil Rist, the Executive Vice President of Strategy for Prosper Insights & Analytics, also issued a statement in conjunction with the release of the survey that was conducted by his firm. Rist said, “Younger consumers are eager to begin their Halloween shopping, with more than half of those ages 25-44 planning to shop before or during September. Social media continues to grow as a source of costume inspiration for younger consumers, as more people under 25 are turning to TikTok, Pinterest and Instagram for ideas.”
The survey found that each consumer is likely to spend $108.24 this year through the October 31st holiday. Almost seventy percent (69%) of people are projected to buy costumes for Halloween, leading to $4.1 billion of spending. Americans are also likely to shell out $3.9 billion on decorations and $3.6 billion on candy in 2023.
According to the report, “consumers are looking to get an early start on their Halloween shopping” with just under fifty percent (45%) commencing their holiday shopping before the month begins, which is an increase of twelve percent from ten years ago.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
