Trump’s Lies and the Foxconn Dream

Doug Mills/The New York Times

❝ Wisconsin is about to shell out as much as $3 billion for the privilege of luring Foxconn Technology Group. At $519 per citizen, it would have been cheaper to buy an iPhone for every man, woman and child in the midwestern state.

Let’s be clear: The big winner isn’t the taxpayer. It’s Foxconn and its billionaire chairman Terry Gou. As I predicted several times, Foxconn would only come to the U.S. if and when his demands were met.

❝ Meet them is exactly what Wisconsin did, with an offering of tax credits, training grants and infrastructure improvements. In return, Foxconn said it will invest $10 billion and create 3,000 jobs.

Let’s take a look at those figures: Wisconsin is paying as much as $1 million per job, which will carry an average salary of $54,000. The state’s economic development corporation is selling the project to taxpayers with a claim that it will create 10,000 construction jobs for building the facility and another 6,000 indirect positions. It’s expecting $3.3 million of investment per employee from the Taiwanese company.

❝ Politicians, lobbyists and Foxconn can make the figures work by being generous with the facts. For example, if every one of those jobs came to fruition, they can claim 29,000 positions for $3 billion, or $103,000 per job. But that’s not going to happen.

Foxconn has factories in China and another dozen countries globally, yet that stated $10 billion investment is more than the group’s publicly traded flagship — Hon Hai Precision Industry Co. — has devoted to capital expenditure over the past five years combined.

RTFA for more details about the lies that will justify this transaction. The process of saving/creating jobs by taxpayers forking over dollar$ up front ain’t new. Especially in a state with a Republican governor. Scott Walker tells lies with the best of ’em – and Trump is better at it than he is.

Terry Gou is laughing all the way to the bank.

5 thoughts on “Trump’s Lies and the Foxconn Dream

  1. 桌子已经转过来了 says:

    (8/18/17) Wisconsin lawmakers vote to pay Foxconn $3 billion to get new factory : State taxpayers could end up paying Foxconn $500,000 per job, or more. “The Wisconsin Assembly voted 59-30 on Thursday to approve a bill to give incentives worth $3 billion to Taiwan-based Foxconn so that the company would open its first US plant in the state.
    The bill still has to be approved by a joint finance committee and the state Senate.
    Both houses of Wisconsin’s legislature are controlled by Republicans, and the deal is supported by Wisconsin Governor Scott Walker, a Republican who negotiated the deal.
    Democratic opponents of the deal have pointed out that paying $3 billion to get 3,000 jobs means the state subsidy amounts to around $1 million per job. The $3 billion incentives package includes about $2.85 billion in cash payments from taxpayers and tax breaks valued at about $150 million. The state is also waiving certain environmental rules.

    • B.O. Plenty says:

      “Wisconsin’s offer to Foxconn grew substantially and hit $3 billion on handwritten note” (Milwaukee Journal Sentinel 8/31/17) “Gov. Scott Walker and Terry Gou, chairman of Foxconn Technology Group, signed a commitment on July 12 on the up to $10 billion factory, according to documents released to the Milwaukee Journal Sentinel under the state’s open records law.
      The single handwritten page was inked by the two men two weeks before the deal was announced by President Donald Trump at the White House.
      …(Governor) Walker’s spokesman Tom Evenson said the governor’s office had blacked out parts of the state’s June 2 and June 26 offers because it could hurt the “competitive nature of the project.” He didn’t explain how releasing details from the state’s outdated offer would hurt the state’s competitiveness when the current offer has been released in its entirety.”

  2. Foxy Loxy says:

    Foxconn, the famed Taiwan-based manufacturer behind approximately 40 percent of all consumer electronics (including the iPhone), has agreed to purchase Belkin (Linksys, Wemo) – for $866 million in cash
    See also “Paul Ryan calls eminent domain takeovers wrong, but won’t help homeowners in Foxconn case” scroll down for related stories

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