Arizona’s economy attracts businesses, but cost woes loom over voters

PHOENIX – Businesses continue to move to Arizona, but the lingering impacts of inflation and sustained economic growth loom over voter’s minds as voters head to the polls Tuesday.

The Post reported that recent polling indicated that the economy is a top concern among Grand Canyon State voters, with 82% saying it’s a “major factor,” according to the CBS News and YouGov survey.

The Phoenix Metropolitan area saw a shocking 13% year-over-year increase in inflation in August 2022, per the US Bureau of Labor Statistics. While the rate has since fallen down to 2.3%, Arizonans are still paying high prices, as a slowing of inflation does not necessarily mean the prices will go down to pre-pandemic levels.

Common Sense Institute Arizona’s Director of Policy and Research, Glenn Farley, told The Post in an email that inflation will play a “central role” in Arizona and nationwide this election.

“But to be clear, this is inflation as consumers/voters see it, and not necessarily as it is defined academically or by the press. Specifically, people are frustrated with the price level, and their frustration isn’t just with consumer prices but housing prices and interest rates as well, neither of which fall into the modern consumer price index.”

I believe voters will vote for people and policies that they perceive will help bring prices down, and not just the rate of inflation — including the price of housing, interest rates, etcetera,” Farley added.

Farley’s sentiment certainly resonates with some voters, including Marc Hernandez, a 25-year-old rancher in Douglas, Arizona, who told The Post this summer he’s voting for Donald Trump after backing Biden in 2020.

“After graduation, I began working on my family’s cattle ranch and the economy has been really rough on ranchers and farmers these last few years. Inflation has eaten up most of our profits and we had to let some of our ranchers go. We also have issues with water and power rates going up,” Hernandez said.

“I can’t see myself starting a family, buying a house, or starting my own business unless the economy gets much better soon.”

Democrats are making on the campaign trail that legislation such as the CHIPS and Science Act, as well as the COVID-19 stimulus packages, helped boost the job market, particularly in the Grand Canyon State.

There are major efforts in both the public and private sectors in the state to boost apprenticeships for skilled trades, including in the semiconductor industry, with the hopes of creating sustained job growth in the long term.

“The job market has been strengthening in Arizona,” real estate investor Arvand Sabetian and Ziprent founder told The Post in a statement, citing growth in the tech world.

“Other sectors, such as healthcare, manufacturing, and renewable energy, have also seen strength as unemployment has been below the national average,” he added. The Arizona September jobs report has the state’s unemployment rate at 3.5%, compared with the nationwide 4.1%.

As expected, the economy has translated into a major campaign trail focus, including for surrogates visiting the Grand Canyon State, including former New York Rep. Lee Zeldin, who held an event in Tucson this week promoting the no tax on tips proposal on behalf of the Trump campaign.

“As far as issues go, the number one issue we’re hearing is the economy,” Zeldin said in an interview with The Post in Phoenix on Tuesday.

“Some people will allow optimism to be an excuse for complacency, but there’s no room for complacency in this. The race is still very close everywhere, and the only way to win is for everyone to do everything in our power to get out the vote,” he later added.