On Tuesday, LG Energy Solution announced a $1.4 billion battery manufacturing facility on a 600-acre site in Queen Creek to produce batteries for electric vehicles.
“With the construction of our new facility in Arizona, LG Energy Solution aims to provide unprecedented consumer value in the fast-growing cylindrical battery market,” said Youngsoo Kwon, CEO of LG Energy Solution, in a press release. It will be the first facility of this type in North America.
LG Energy Solution joins companies like Intel, TSMC, Lucid, Nikola and ElectraMeccanica to bring high-tech manufacturing to Grand Canyon State.
Meanwhile, in California, nearly 300 companies have relocated their headquarters out of the state since 2018, according to Stanford University’s Hoover Institution.
None of this is an accident. Instead, it’s Gov. Doug Ducey’s shrewd economic policies that are welcoming, rather than chasing, job creators.
“Global technology leaders like LG choose Arizona for our world-class business environment, progressive workforce, unbeatable quality of life and culture of innovation – a culture that offers unprecedented opportunities for current and future generations,” said Ducey.
Arizona has surpassed every state in the last decade
If the steady influx of companies moving to our state doesn’t convince you, the numbers will.
The American Legislative Exchange Council’s 15th annual Rich States, Poor States study was released this week. It ranks each state’s economic forecasts based on policy decisions and recent economic performance based on the state’s gross domestic product, absolute internal migration and non-farm employment.
In terms of economic prospects for the next few years, Arizona ranks third behind Utah and North Carolina. Meanwhile, California ranks 48th, just beating New Jersey and New York, which occupy the last spots.
Of the top 10 states, eight have Republican governors; of the bottom 10, eight have Democratic governors.
Again, none of this is an accident. When a state government punishes employers with high taxes and bureaucracy, those companies simply walk out. At least the companies that haven’t already been destroyed by meddling by bureaucrats and unnecessary regulations.
Arizona performed even better on the Rich States, Poor States economic performance ranking. From 2010 to 2020, Arizona ranks first in the nation. Right: number one. A major reason was immigration from other states, which also helped Florida (third place) and Texas (eighth place).
Arizona outperformed those two states in gross domestic product and nonfarm payrolls, earning us first place overall.
What future do we want? It’s up to the voters
Good policy creates good results.
“Tax cuts, debt redemption, and the maintenance of free-market policies have significantly helped states attract new residents,” the study said.
“Americans continue to vote with their feet for states that have lower tax burdens and value economic competitiveness,” said Jonathan Williams, ALEC chief economist and executive vice president of policy. “Rich states, poor states teach us that lower-tax states, particularly those that avoid personal income taxes, had significantly better immigration rates than states with high income-tax rates.”
Williams credits Arizona’s recent tax cuts with this year’s high rankings.
“It was a saving for hard-working Arizona taxpayers, and I think the legislature and Gov. Ducey should be commended for such a commitment to reducing Arizona’s tax burden,” he said.
As the state elects a new governor, think about the lessons you’ve learned over the past decade. We can continue our current track record of growth and success or sacrifice our recent victories to any of the nations that compete with us.
Do we want the good economic times to continue, or do we prefer the Californian model of dwindling jobs, corporate exodus and the resulting rampant income inequality?
The choice is ours.
Jon Gabriel, a Mesa resident, is the Editor-in-Chief of Ricochet.com and a contributor to The Republic and azcentral.com. Follow him on Twitter at @exjon.
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