As our next governor, I am focused on addressing rising inflation, the continued outsourcing of jobs and technology to hostile powers, and the economic imbalances that are making life increasingly difficult for so many Arizonans. Put simply, our leaders have sold us out for years, they’ve taken our jobs and given them to China, and when the pandemic hit, we saw exactly what happens when you do that: China – which now manufactures almost all the PPE gear our hospitals need and many of the drugs we rely on – stopped shipping those things out and kept them for themselves. People died so that our corporate leaders could get a bigger bonus.
The “Designed in California” label found on boxes from Apple and other nominally U.S. companies is entirely emblematic of the problem. Our neighboring one-party state is in the business of transforming U.S. funded R&D into amazing products that create millions of jobs…in China. Under this regime, an elite group of Stanford and Berkley graduates secure high-paying tech careers and Silicon Valley makes billions. The same is true in nearly every sector of our economy. Meanwhile, regular Americans struggle working multiple jobs to pay the rent.
Meanwhile, America’s manufacturing capacity has dwindled to the point where our medical and national security supply chain are clearly at risk. President Trump understood all this, and his commonsense economic policies earned him the unwavering support of working-class Americans. I embrace his vision of restoring our manufacturing strength and developing secure, high-paying jobs for our people. The transformative technologies of the Fourth Industrial Revolution (4IR): robotics, Artificial Intelligence and Machine Learning, 3D printing, and the Internet of Things make modern manufacturing and assembly jobs very attractive. These innovations also play to our state’s strengths in natural resources, climate, space, good governance and a well-educated, hardworking population.
Wall Street claims that reshoring is “impossible.” Yet MIT Technology Review estimates that while assembling a $750 iPhone with repressed labor in Shenzhen costs about $10, doing it at decent wages in the U.S. would add just $30. Apple’s 42.5% gross margins can absorb that. The globalists will also insist that reshoring “takes too long” or that America “lacks infrastructure.” If that’s the case, how did China transform from medieval agricultural poverty to tech manufacturing giant in a generation?
The reality is that reshoring is in progress. Our state has new chip plants from Intel and Taiwan Semiconductor under construction. We need to use this opportunity to ensure that our state becomes the international hub for chip making. Intel recently committed $20 billion to $100 billion to manufacturing in Ohio. That investment and the thousands of high paying jobs it will create should have come to Arizona. The jobs generated by factories like these include highly paid production engineers, machinists, managers and accountants. Building these facilities employs architects, civil engineers and thousands of construction workers. They will support hundreds of local businesses from machine shops to movie theaters.
The corporate exodus from California’s dirty, crime-plagued cities, anti-business climate, and woke educational system is accelerating. In 2021, marquee brands including Tesla and Hewlett Packard moved their HQs to Texas. SpaceX ‘s newest production facilities are outside of Brownsville and Apple has built manufacturing facilities and a $1billion campus in Austin. Thousands of smaller businesses head for GOP pastures each year.
As governor, I will be laser focused on intercepting these opportunities, because a strong economy both reduces demand on governmental services, and funds them at the same time. As we pursue new opportunities, we shouldn’t forget Arizona’s 5 C’s. We must retain and leverage our existing strengths as a force multiplier for future growth. Our robust mining industry provides a natural advantage in the production of basic materials for components that have been stalling the global supply chain.
It’s not sufficient to pop a champagne cork at a factory opening and then walk away. When American politicians do that, Chinese competitors dump product below cost to drive the new American factories out of business then just buy them up. I will push the federal government to ensure that our industries are nurtured and protected from abusive trade practices, just as our global competitors do.
Some labor-intensive work will move from China directly to other low wage nations. Arizona should see this as a golden opportunity to work with Mexico to increase opportunities for manufacturing along Mexico’s northern border, strengthening their economy and our own at the same time, while reducing the economic pressures driving illegal immigration. Arizona should form a taskforce to partner with our Southern neighbor on this important area of mutual interest. Doing so will keep Mexicans working in Mexico, allowing our border patrol and law enforcement to focus their efforts more squarely on taking down the Cartels and their organized trafficking operations.
Finally, we need to invest in Arizonans and not simply import new citizens, who drive up our cost of living. When accommodating new firms, we must encourage them to locate in rural communities that need good jobs the most and require them to provide on-the-job training. Additionally, the state should work with local governments, school districts and community colleges to address the growing need for manufacturing skills. This includes increased support for trade schools, apprenticeship programs, and shop classes – and emphasize the value of these careers. A CNC programmer in a factory makes a lot more than a debt burdened graduate in gender studies driving for Uber.
Kari Lake is a former award-winning journalist, who is President Donald Trump’s endorsed candidate in the Arizona Republican Primary for Governor.