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.
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.
The current state of the American economy continues to trouble small business owners.
This week, the National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, showing a drop of a half point during the month of September. The index now stands at 90.8, and it has not risen above the average mark of 98 for 21 consecutive months.
OUT TODAY: @NFIBResearch Released its September #SmallBusiness Economic Trends survey. The Optimism Index fell to 90.8, which marks the September reading as the 21st consecutive month below the 49-year average of 98.
NFIB Arizona State Director Chad Heinrich commented on the latest issuance of the index, saying, “It’s clear that small business owners remain deeply concerned about the economy. The pressure of inflation and the labor shortage are continuing to take a toll on our job creators, with little relief in sight.”
Bill Dunkelberg, NFIB’s Chief Economist, also weighed in on the recent numbers from his organization, writing, “Owners remain pessimistic about future business conditions, which has contributed to the low optimism they have regarding the economy. Sales growth among small businesses have slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief.”
The announcement from the Arizona arm of the influential business group stated that “twenty-three percent of owners reported that inflation was their single most important problem in operating their business, unchanged from last month and tied with labor quality as the top concern.”
NFIB highlighted some of the areas of emphasis from their index, including:
Small business owners expecting better business conditions over the next six months deteriorated six points from August to a net negative 43% seasonally adjusted, however, 18 percentage points better than last June’s reading of net negative 61% and definitely at recession levels.
Forty-three percent (seasonally adjusted) of owners reported job openings that were hard to fill, up three points from August and remaining historically high as owners can’t hire enough workers due to few qualified applicants.
Seasonally adjusted, a net 23% plan to raise compensation in the next three months, down three points from August.
The net percent of owners raising average selling prices increased two points to a net 29% seasonally adjusted, still a very inflationary level.
The net percent of owners who expect real sales to be higher increased one point from August to a net negative 13% (seasonally adjusted), still a very dismal posture.
Just last week, the Biden Administration boasted of a “record-breaking economy,” noting the increase of jobs, an unemployment rate below 4%, a low unemployment rate for women, and low unemployment for African Americans, Hispanic Americans, and Americans with disabilities.
Others see the economy in an entirely different light. Alfredo Ortiz, the president and CEO of Job Creators Network, recently said, “This accelerating inflation, which is nearly twice the Federal Reserve’s target rate, is another Bidenomics blow to ordinary Americans and small businesses dealing with rapidly rising prices that are lowering their real wages and living standards for two and a half years.”
"The Biden administration’s ongoing pattern of 'reckless spending and anti-energy policy' represents, in Alfredo Ortiz’s view, 'another Bidenomics blow to ordinary Americans and small businesses' grappling with persistently soaring prices." @Gingrich360https://t.co/wxFa9kUj19
On September 19, I testified before a House subcommittee on the impacts of Bidenomics – yet it was clear that half the committee members weren’t even listening. That’s disturbing because our lawmakers have played a huge role in making the typical American family about $7,000 poorer in just two and a half years.
Instead of acknowledging the data I presented, the Democrats on the subcommittee only regurgitated their talking points and resorted to espousing falsehoods about the state of the economy. Even if half our leaders won’t listen to the facts, hopefully the American people will, so here’s the truth about Bidenomics.
Under President Joe Biden, the government has spent, borrowed, and created trillions of dollars, and that caused the highest inflation in four decades. This inflation is a real tax on the American people because it transfers wealth from the people to the government. And the size of that transfer has been staggering.
The average American worker today loses more of his hourly earnings through the hidden tax of inflation than in federal income taxes. That means inflation under Mr. Biden has effectively doubled the average American’s federal income tax liability. Nominal pay keeps going up, but real (inflation-adjusted) pay has gone down.
The typical American family with two parents working and with average weekly earnings has seen their weekly pay increase $230 under Biden, but those larger paychecks buy about $100 less. The result is an annual decrease in purchasing power of about $5,100.
Similarly, net household wealth is at a record high today, but only before adjusting for inflation. In real terms, net household wealth is roughly flat since the end of 2020. That means nearly all the trillions of dollars in additional net household wealth have been confiscated by the government under this president through the hidden tax of inflation.
That’s how the government has been financing its massive deficits for the last three years.
To combat the inflation that it helped cause, the Federal Reserve has increased interest rates which have compounded the pain for Americans. Borrowing costs have risen dramatically and are now about $1,800 higher annually for the typical American family. Coupled with their loss in purchasing power, this leaves a family about $7,000 poorer than when Mr. Biden took office.
Yet many people are even worse off than that. If you’re trying to buy a home today, the monthly mortgage payment on a median price home has more than doubled under Mr. Biden. Homeownership affordability is at one of its lowest levels on record, and less than half of American households can qualify for a mortgage. And many who qualify still can’t afford the payments.
The impact of Bidenomics on federal finances has been just as bad, with interest on the federal debt rising at the fastest pace on record. In less than a decade, interest payments will crowd out more than half of existing government spending.
While the Democrats on the subcommittee refused to listen to any facts I presented, nothing I said was about politics, but policy. President Bill Clinton, a Democrat, signed welfare reform and multiple balanced budgets. And the 12 years of low inflation that preceded Mr. Biden were overseen by both a Republican and a Democrat.
The laws of supply and demand are purely apolitical, with both Democrats and Republicans being subjected to them. The sooner today’s Democrats—and some Republicans—realize this, the sooner they can acknowledge the factual outcomes of Bidenomics and hopefully change course.
But if the conduct of the Democrats on the subcommittee before which I testified is any indication, we shouldn’t hold our breath.
E.J. Antoni is a contributor to The Daily Caller News Foundation, a public finance economist at The Heritage Foundation, and a senior fellow at Committee to Unleash Prosperity.
In boasting about Bidenomics two weeks ago in Milwaukee, President Joe Biden declared that his policies are “restoring the American dream.” Then he went into his creepy whispering mode and assured us “it’s working.”
Huh?
Isn’t a big aspiration of the American dream owning a home? Biden keeps making first-time homeownership harder for young families for two reasons. One is that the overall jump in inflation and the slower increase in wages and salaries means that homes are more expensive. High home prices benefit those who already own their homes, but much of the increased value is due to general inflation, which reached a high of 9% last year and hurts everyone.
A bigger killer for first-time homebuyers has been the steady rise in mortgage rates under Biden. When he came into office, the mortgage rate was 2.9% nationally. Now it is 7.1%, thanks in no small part to the Federal Reserve’s 11 interest rate increases prompted by the $6 trillion Biden spending and borrowing spree in 2021 and 2022.
So now, according to the mortgage company Redfin, just the increase in interest rates on a 30-year mortgage from 5% to 7% means that a middle-income family that could once afford a median-value home of $500,000 can only afford a home worth $429,000. Great, spend more and you get less house. Or instead of a single-family home, you can only afford a three-room condo or a townhouse. If we compare the rates today versus when Donald Trump was president, the typical homebuyer can only afford a house with a price tag more than $100,000 less than three years ago.
What a deal? Maybe this is one reason the size of a new home is smaller than in the past.
Here’s another way to think about the damage done by Biden policies: If you want to buy a $500,000 home today, which is close to the median price in many desirable locations, your total interest payments will be at least $800 more per month. That means over three decades of payments totaling at least $250,000.
Of course, rents are up nearly 20% as well, so for many 20-somethings, this means sleeping in the parents’ basement.
Biden talks a lot about bridging gaps between rich and poor and blacks and whites. But the group that is most handicapped by these interest rate shocks is minorities. Black homeownership is still less than 50% for black households. The Washington Post calls this “heartbreaking,” but they blame racism, not bad government policies.
There’s one other impediment to homeownership for Generation X and millennials. Many 30- and 40-somethings are hamstrung by their existing and expanding debt. Credit card debt is now $1.03 trillion. Half of all families are expected to have problems paying off this debt each month. Delinquencies are rising, which can mean penalty rates of 20% to 25%.
So, if families can’t afford their existing debt, how will they get a bank to approve a $400,000 or more mortgage loan?
An even bigger question is how in the world can Biden call his economic policies a success?
Perhaps Biden has a secret plan to “forgive” trillions of dollars of mortgage debt, as he has already attempted to do with student loans. But that just shifts the debt burden to taxpayers — hardly a solution.
The Biden administration’s assault on homeownership isn’t just harmful to the families that are being priced out of the market. It’s bad for communities and cities around the country. When families become homeowners and set roots in a town, they are much more prone to care about not just improving their own house and maintaining the upkeep and mowing the lawn and trimming the hedges, but it gives them a stake in the schools and children in the neighborhood and the quality of the public services. In other words, homeownership gives Americans a sense of Tocquevillian civic pride.
Crime is lower, neighbors are friendlier and everyone’s property values rise when they live in a community of owners, not renters.
There is one reason to feel today’s downward spiral can be reversed. Back in 1980 when Jimmy Carter was president, mortgage rates weren’t 7%; they reached above 17%. Voters rebelled against the economic mayhem and chased Carter out of office. Ronald Reagan came into the White House, and with wiser economic fiscal policies, mortgage rates quickly fell in half and then lower still. It can happen again.
Stephen Moore is a contributor to The Daily Caller News Foundation, senior fellow at the Heritage Foundation, and chief economist at FreedomWorks. He is the co-author of the “Trumponomics: Inside the America First Plan to Revive Our Economy.”
