Swing States’ Business Climates Show Improvement Under Biden-Harris Administration, But Economic Concerns Remain Key in 2024 Election
The 2024 presidential election is heating up, and economic conditions in key swing states are playing a pivotal role. A recent CNBC analysis reveals a mixed bag: five out of seven crucial swing states experienced improvements in their overall business climates under the Biden-Harris administration. However, this positive trend doesn’t necessarily translate to improved economic realities for all citizens, especially considering that the economy consistently ranks among voters’ top concerns. While some states boast significant investments and infrastructure advancements, others grapple with persistent challenges like high unemployment, workforce shortages, and underfunded education systems – all factors potentially shaping the election’s outcome.
Key Takeaways: Swing States in the 2024 Presidential Election
- Five of seven key swing states (Arizona, Georgia, Michigan, North Carolina, and Pennsylvania) showed improved business climates compared to 2019.
- Economic concerns remain paramount for voters, despite improvements in some business metrics.
- State-specific policies and investments, rather than solely national policies, significantly influence business climate rankings.
- The CHIPS and Science Act played a considerable role in boosting the semiconductor industry in certain states.
- Challenges remain, including workforce shortages, educational disparities, and high costs of living.
Arizona: A Semiconductor Boom Fueled by the CHIPS Act
Arizona’s business climate has received a substantial boost, largely thanks to the semiconductor industry. TSMC’s massive $65 billion investment, significantly fueled by $6.6 billion in CHIPS Act funding, has propelled Arizona to become a major player in chip manufacturing. This investment, along with Intel’s substantial contribution, strengthens the state’s economy. However, challenges remain. Arizona’s Workforce ranking falls to No. 6, highlighting the struggle to meet the high demand for skilled labor. The state’s No. 47 ranking in Education, characterized by large class sizes and underfunded schools, underscores the need for significant improvement in this area. The recent delay in TSMC’s production start, attributed to a labor shortage, adds another layer of complexity to the state’s economic picture.
Challenges and Opportunities in Arizona’s Economic Landscape
While Arizona’s semiconductor industry is flourishing, the state faces critical hurdles. The rising cost of living, coupled with workforce training programs struggling to keep pace with demand, presents a significant challenge. The Biden administration’s designation of Phoenix as a Workforce Hub aims to address these issues by fostering public-private partnerships and strengthening the state’s talent pipeline. Overcoming these challenges and capitalizing on existing opportunities will be crucial to ensuring continued economic growth in the state.
Georgia: Infrastructure Excellence with Economic Growth and Challenges
Georgia’s top-ranked infrastructure, highlighted by Atlanta’s bustling Hartsfield-Jackson International Airport, further enhanced by a $45 million facelift under the Bipartisan Infrastructure Law, is a significant advantage. Georgia’s strategic site readiness program, Georgia Ready for Accelerated Development (GRAD), has attracted substantial investment in electric vehicle (EV) production, with companies like Kia, Hyundai, and Rivian establishing facilities in the state. The state boasts over $27 billion in EV investments since 2018. While the Inflation Reduction Act aims to boost the EV industry, Governor Kemp’s claim that the act is counterproductive by accelerating the industry too rapidly adds a political dimension.
Quality of Life Concerns Temper Economic Success
Georgia’s success in infrastructure and EV manufacturing is tempered by its 40th-place ranking in Quality of Life. This reflects issues with healthcare, worker protections, and the recently reinstated six-week abortion ban. These factors could impact Georgia’s attractiveness as a place to live and work, potentially affecting its long-term economic prospects. Balancing economic growth with improved quality of life will be critical to sustaining Georgia’s competitive advantage.
Michigan: A Democratic Success Story Facing Economic Headwinds
Michigan’s rise to ninth place in the Top States ranking signifies a significant turnaround. Its low cost of living and improved business friendliness, achieved through regulatory cuts, contribute to this positive trend. Governor Whitmer’s Democratic administration has achieved a trifecta – winning control of the state legislature and governorship – leading to repealed right-to-work laws and enhanced worker protections. The state’s commitment to en enshrined abortion rights further reflects this shift.
Workforce Challenges and the EV Industry’s Impact
Despite these successes, Michigan faces a workforce shortage. The slowdown in the EV industry, exemplified by Ford’s scaling back of its battery plant plans, highlights economic vulnerabilities. The state’s effort to attract workers hasn’t fully yielded results; overcoming this challenge will play a role in its continued economic performance. Addressing this workforce gap while capitalizing on existing economic strengths will be vital for Michigan’s future.
Nevada: High Unemployment and Educational Gaps
Nevada’s high unemployment rate, while providing a large workforce pool for employers, poses a challenge for the state’s economic narrative and may affect voters’ perception of the economy. Nevada’s improvement in workforce ranking demonstrates this available talent pool, but the state’s Education system ranks last nationally, characterized by large class sizes (24 students per teacher) and low test scores. This presents a significant hurdle to long-term economic growth, as a skilled workforce is crucial for attracting investment. Nevada’s relatively low ranking in Technology and Innovation highlights another area needing further development.
North Carolina: A Slight Dip from the Top, But Still Strong
North Carolina’s recent economic performance exhibits a balance of strength and struggle. Its high rankings for Workforce, Economy, and Business Friendliness show potential for continued success. However, the drop in Infrastructure ranking, due to utility struggles keeping pace with growth, signals a potential threat. The state’s success might be further threatened by the economic fallout from Hurricane Helene which recently caused widespread damage in the western part of the state.
Pennsylvania: Progress in Education, Challenges in the Economy
Pennsylvania, under Governor Shapiro’s leadership, has achieved progress in Education rankings, rising to third place. School funding has been a focus, which has helped increase higher education funding. Despite this success, Pennsylvania’s Economy lags, ranking 34th, with slow job growth and low new business formation rates. High regulation and a shortage of community colleges further hinder economic prospects, creating a need for comprehensive strategies to improve the state’s business environment.
Wisconsin: High-Tech Aspirations and Educational Setbacks
Wisconsin’s business climate involves both past failures and present aspirations. The Foxconn debacle, while initially a setback, has transitioned into opportunities with Microsoft’s data center development and a Tech Hub designation. However, a significant decline in Education ranking, largely due to reduced higher education funding, indicates a need for change. Balancing this historical baggage with future ambitions is crucial for Wisconsin to make significant economic strides in the coming future.
