The dead-end hyperinflationary policies of the Biden-Harris administration have put the American Dream out of reach for many young people. I have talked to my 21-year-old daughter about this so many times that it breaks my heart.
Ruby, like so many young Americans, is doing everything right. She works hard, she saves up, but that old-fashioned notion of the white-picket fence seems to be slipping away from her grasp. Part of the reason I am running for Senate is to make America affordable again. And I know that bringing down out-of-control housing prices is the key to restoring access to the American Dream for our young people.
Per Federal Reserve data, in 1984, the median U.S. household income was $22,400 and the median home price was $78,200, or about 3.5 times the median income. By 2022, median household income had risen to $74,580, but median home prices had risen to over $433,000 — or nearly six times median income.
Elected officials owe it to our constituents to take clear and decisive action to reduce housing costs.
There has been so much focus on the role of interest rates, but the answer to bringing them back down, while hard to achieve, is fairly straightforward: the federal government needs to stop printing money we don’t have so that it can pay bills that we can’t afford. Taming that imbalance won’t be quick or easy, and anyone who tells you otherwise is selling you a bill of goods.
But there is another key element of the housing crisis that we can address quickly and effectively: a lack of skilled tradespeople. According to an analysis by Associated Builders and Contractors, the United States is short over half a million skilled construction workers. The lack of skilled construction workers combined with rapidly increasing costs of materials is creating a roadblock to building the millions of additional housing units that are needed to relieve the cost bottleneck.
Bringing down the cost of materials largely hinges on three things: reducing the price of energy and fuel, eliminating excessive regulations created by the Biden-Harris administration, and increasing the number of skilled workers available to producers. Limitations on oil-and-gas production and refining are leading to rapidly increasing fuel and energy costs that have inflated the price of building materials by tens of thousands of dollars per home.
Likewise, excessive regulation and DEI mandates being forced on producers by the Biden-Harris administration are also increasing materials and labor costs, without appreciable benefit to society in terms of reduced inequality. Lastly, the rush to send every high school graduate to a four-year college, with massive government subsidies, is draining the workforce of skilled tradespeople which both increases the cost of construction and delays additional new home starts.
Solving the first two problems is very simple. Replace President Joe Biden and Vice President Kamala Harris with Donald Trump, overturn the current administration’s pointless and counterproductive executive mandates, and you are two thirds of the way there. The last step — increasing the number of skilled construction workers — is going to take more effort.
But with some simple changes in federal education funding and policy, we can turn that deficit around in a matter of just a few years by revising federal education funding and loans to stop discriminating against trade schools and technical education and support the development of a skilled workforce sufficient to meet the demands of our housing market.
First, we need to revise the guidelines for Pell grants to allow them to be issued and used for more students to attend trade and technical schools. Second, if the government is going to continue to back student loans, eligibility for those loans needs to be aggressively expanded to include more trade schools.
Currently, trade-school students can access government-backed student loans, but only if their trade school is federally accredited. Many are not. Getting the vast majority of trade schools nationwide accredited so their students have access to government-backed loans should be a major priority for the next administration and will be a priority of mine in the U.S. Senate.
Lastly, the government needs to aggressively partner with industry to expand trade school opportunities by making low-interest loans available to companies and unions to invest in new and expanded trade and technical-school facilities.
The cost to attend trade and technical schools is far less than the cost of a four-year degree, and the returns on that investment are astronomical. A few thousand dollars of up-front investment in these careers yields a lifetime of high earnings, and resultant increased tax revenues. As a result, investing in expanding our skilled workforce is responsible governance, and must be a priority going forward.
Plans by state and local leadership to establish Arizona as a leader in semiconductor manufacturing have stalled due to a lack of skilled workers.
Taiwan Semiconductor Manufacturing Company (TSMC) announced last week that it will delay production until 2025: a full year after their initially planned launch. TSMC produces 90 percent of the world’s microchips, supplying major products like Apple’s iPhone, iPad, and Mac computers.
TSMC Chair Mark Liu indicated in last week’s second quarter earnings call that efforts on their end to gin up an adequate workforce couldn’t counter the limited talent pool in the country.
“We are encountering certain challenges, as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor-grade facility,” said Liu. “While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
Maricopa County Community Colleges (MCCC) partnered with Intel to launch a program last year to supplement the burgeoning semiconductor industry’s workforce, estimated to be around 3,000 workers between Intel and TSMC. Students who pass certification receive a $270 stipend to cover the tuition cost.
TSMC raised their investment in the state from $12 billion to $40 billion ahead of President Joe Biden’s visit to tour the Phoenix facility last year.
Biden’s TSMC appearance marked his first and only trip to the state during his entire presidency — even with the ongoing border crisis. Biden justified prioritization of a manufacturing facility over the border crisis by claiming the border wasn’t important.
Biden’s first and, so far, only interest in visiting Arizona may align with his consistent desire to prioritize business and personal interests over national interests (as reflected by his alleged involvement in the laptop debacle revealing corrupt foreign business dealings by his son, Hunter Biden). Biden said during his TSMC speech that he “owe[s] an awful lot” to TSMC because the wife of its founder, Morris Chang, worked his first Senate campaign.
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
Phoenix Mayor Kate Gallego also has ties to TSMC. Gallego’s former senior policy advisor and campaign donor, Laura Franco French, serves as TSMC’s director of state government relations. Franco French joined TSMC in 2021 immediately after departing Gallego’s office, where she’d served since Gallego became mayor in 2019.
Gallego’s TSMC connection may explain her apparent lack of concern with TSMC’s delay. When asked about the TSMC issue with obtaining skilled workers during an interview on Sunday, Gallego responded with a non-answer.
“We are very excited to be the future of semiconductors. It’s so important that we’re onshoring manufacturing of these essential devices in the United States and we’re going to take an all-hands-on deck approach to make sure it is successful,” said Gallego. “President Biden has picked Phoenix as one of the innovation job hubs and will be able to partner with the US Department of Commerce in particular, but across his administration to do training for our residents. We have a very successful project with our community college where people can get a six-week certificate in semiconductors that’s produced hundreds of graduates so far, but we know we have to turn it up so that we can deliver not just for Arizona but for the world.”
In addition to the shortage of skilled workers, TSMC’s development in Arizona may be delayed due to other concerns with health and environmental impact.
Perfluoroalkyl and polyfluoroalkyl substances (PFAS) — dubbed “forever chemicals” for their resistance to breaking down — are integral to microchip production. PFAS have been linked to a host of serious health issues concerning fertility, fetal development, bone variations, behavioral changes, accelerated puberty, high blood pressure, liver disease, cancer, lowered immunity, hormone disruption, thyroid disease, high cholesterol, and obesity. Chemical waste from factory production has led to PFAS contaminating water and, consequently, humans and the environment.
The Biden administration has progressively focused on PFAS with increasing pressure. Last June, the Environmental Protection Agency (EPA) issued four drinking water health advisories for PFAS. Last August, the EPA proposed designating two of the most widely used PFAS as hazardous substances. Last December, the EPA required facilities to report on all PFAS usage. In March, the EPA issued its first-ever proposal to regulate PFAS in drinking water.
The Biden administration has offered $3 billion in grants to states and territories to clean up PFAS in drinking water; it also launched an analytics tool for the public to track PFAS contamination.
3M announced in December that it would halt PFAs production by 2025, a move which set off alarm bells for TSMC and other chipmakers. The announcement came ahead of the company’s $10.5 to $12.5 billion settlement for drinking water contamination.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
