If company doesn’t the state may have to bail out local taxpayers.
In the end, the Foxconn debacle in Wisconsin is the physical manifestation of the alternate reality that has defined the Trump administration. Read @joshdzieza’s full story here: https://t.co/kIemaESwdw pic.twitter.com/HFc0N0YLXf — The Verge (@verge) October 19, 2020
The legacy giveaway from @ScottWalker, is back in the news for being so much less than it was supposed to be. It will probably only employ hundreds of people, rather than the promised 13,000. https://t.co/8qv2Jf8zRi — FoxConnCon (@foxconncon) September 3, 2020
UW-Madison received $700,000 in the first of a five-year agreement — less than 1% of the company’s overall commitment. Records show the university has received no additional money in the second year of the agreement.
Think in the midst of a global pandemic that Foxconn is going to move forward in Wisconsin? Think again. Foxconn is refocusing on China.https://t.co/XkQdhJJNmK — FoxConnCon (@foxconncon) April 5, 2020 .
As a general term, innovation center doesn’t say anything specific to us, so we were from the start trying to understand what they meant by that.
In total, among the Wisconsin Economic Development Corp., Racine County and the Village of Mount Pleasant, consultants and other firms have been paid more than $5.3 million from 2017 to October 2019.
The ass-covering is going to pick up from the WisGOPs and local yokels that designed and signed off on this scam.
From The White House’s official transcript:
This is just the beginning. This is one of the largest plants in the world. And when you think in terms of 20 million feet — if you build in Manhattan a million-foot building, that’s a very big building. They don’t get much bigger. And here you’re talking about more. Think of it: more than 20 million feet. And that’s probably going to be a minimal number.
So I’m thrilled to be here in the Badger State with the hardworking men and women of Foxconn working with you. Moments ago, we broke ground on a plant that will provide jobs for much more than 13,000 Wisconsin workers. (Applause.) Really something. Really something. Thank you, fellas.
When will WEDC drop that fatally self-mocking “WisConn” bad label?
Give that rent-seeking corporation a small check to have them go away, and stop the bleeding before they take a lot more from Wisconsinites in future years.
Pay-as-you-go is another lie from proponents of Foxconn. Much has been paid, while the going is to nowhere. Ricardo Torres reports Taxpayers have spent more than $225 million on roads around Foxconn.
As it turns out, history had already determined that state handouts to attract and keep businesses was a horrible idea, so bad in fact many states amended their Constitutions to prevent those mistakes from ever happening again in the future.After reading the Cap Times article “Where to now with Foxconn? It won’t leave Wisconsin, but it won’t build what it promised,” where every paragraph revealed another strange twist or failure, I had to look up why Scott Walker and his band of plundering Republicans pirates liked the idea of state corporate handouts so much. Not surprisingly, their actions weren’t based on anything I found in the real world, it was simply pure ideological theory. Look at how much money we’re losing, and how few jobs they’re creating…
They say there’s no such thing as bad publicity.
Here’s the counter-argument today, first in a long, must-read piece carried by the Madison Capital Times which, among other things, looks at the risks facing Racine County and the Village of Mount Pleasant where Foxconn bulldozing and local borrowing are well underway:
Based on an examination of Foxconn’s corporate history, Asian business practices and the stark realities of the LCD panel production industry, the likelihood of a flat panel factory in Mount Pleasant seems unlikely any time soon — if ever.
Neither does the prospect of anything close to 13,000 “family supporting” jobs…
For Racine County, the situation is more pressing… The total county cost was recently projected at $911 million, a liability of more than $10,000 per county household…
Just to remind you on how much of a COMPLETE SUCKER you have to,be to think that Foxconn will ever create anything close to 13,000 jobs, let me show you yesterday’s John Oliver segment on the automation of jobs. Something Foxconn proudly proclaims to be a “world leader” on.
As Oliver’s piece notes, historically jobs that have been automated out of existence get replaced by new technologies, generally in more knowledge-based industries. Except that Foxconn’s big pre-election promises on new “innovation centers” outside of Racine County don’t seem to be working out either.
Defenders of the Foxconn deal often claim that the contract protects state taxpayers because Foxconn won’t receive any credits if it doesn’t meet job thresholds. Although that claim is true in part, it’s also very misleading. More than a third of the planned subsidies — $1.6 billion — including the state and local infrastructure spending for the project, has little or no tie to job creation.
3. The state and local subsidies per job are much higher if Foxconn falls well short of the job creation targets.
Under the contract, Foxconn can get the maximum capital investment credits even if it falls well short of each year’s job target. For example, Foxconn can receive the maximum annual cash subsidy (“tax credit”) of nearly $193 million per year even if it employs only 520 people at the end of this year (25 percent of the target level) and 1,820 at the end of 2020 (which is just 35 percent of that year’s target of 5,200 jobs). Under that lower employment scenario, the job creation payments to Foxconn would be lower, but the investment subsidies are much less tied to the job levels.
In light of that factor, plus all the upfront subsidies that are independent of job creation, the total cost of state and local subsides will be much higher per job if Foxconn builds a smaller plant with fewer employees than initially promised. The huge subsidies for each job created are a concern for many reasons, including the fact that the revisions to Foxconn’s plans make it far less likely that project will have the purported employment benefits for blue collar workers and communities of color in southeast Wisconsin.
Just to give an approximation for the purposes of visualization: A gallon of water weighs 8.36 pounds and a typical semi-tanker can hold about 6000 gallons of water legal weight for transport.
So after doing the math for 7 million gallons per day that would mean the equivalent of looking at over 1,100 semi tankers of water. Of course they’re not trucking it but it gives you an idea to visualize the magnitude. Every day.
As an example, if you went to park 1,100 semi tankers end to end they would stretch for over 14 miles. Looked at another way, if you jammed them all together with no space between them in the most compact parking area you would need a lot that is almost 4 miles by 4 miles or almost 16 square miles.