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Will Wisconsin Get Foxconned?

posted by takyon on Tuesday August 01 2017, @11:04AM   
from the self-defeating-interstate-competition-for-jobs dept.

-- OriginalOwner_ writes:

The Progressive reports:

Wisconsin is now poised to reward Foxconn with a whopping $3 billion "incentive" package--the fourth largest "mega-deal" in U.S. history. (That figure works out to an incredible $231,000 per job, and does not include the local subsidies that are invariably a part of such deals.) The bulk of this subsidy would be paid out in cash.[1]

[...] Wisconsin is jumping into the self-defeating interstate competition for jobs, in which U.S. states spend a collective $110 billion[2] on tax breaks and other sweeteners reserved mostly for the largest and most profitable companies like Foxconn, which raked in $2.26 billion in profits last year.

[1] Paywall after x visits per month.
[2] Link in TFA is just a search: http://america.aljazeera.com/search.html?q=%24110+billion.

---

Original Submission

• Re:Bad deal? (Score: 0) by Anonymous Coward on Tuesday August 01 2017, @04:30PM

  by Anonymous Coward on Tuesday August 01 2017, @04:30PM (#547698)

  And then if Foxconn pulls out after 4 years for someplace cheaper, they'll be left without that money, plus a bunch of support businesses and jobs left hanging and low-wage workers now needing assistance (who didn't live there before).

  It really depends where they put the factory. If they put this in the middle of nowhere, yes, that's probably true.

  Down around the old factories though?

  Those people have been left hanging before, and those support businesses have already died/hibernated once as a result. Going through the cycle once more isn't going to be much worse than the current state of affairs. Worst case scenario is you end up exactly where you were, at least at the local level.

  Parent