Foxconn has wrung a promise of $3 billion in corporate welfare from the state of Wisconsin, but even that is no guarantee that it will open a factory there, even if it swears up and down that this is in the cards.
Just ask the folks in Pennsylvania who were promised a flat-panel display plant in 2013 and instead got "an empty office in Harrisburg and nothing further" -- and then ask the Indonesians who are waiting on Foxconn to make good on its 2013 written promise to open a factory; the Vietnamese who got their written promise in 2007, and the Brazilians who've been watching the ink dry on their Foxconn letter since 2011, and who've sent $12 billion to the company in the intervening years.
Michigan's deep-red red-state governor Rick Snyder also has a great vaporware deal underway with the Foxconn PR machine.
For free market ideologues, Foxconn is a bargain and a deal-sealer. After you take office, destroy your electorate's social safety net and slash taxes on the rich, Foxconn will, for a few billion dollars, provide the window-dressing you need to "prove" that your plan has lured in the world's great manufacturing companies, and will string things along until you're comfortably out of office and working as a lobbyist.
Don't miss Adafruit's Phil Torrone on Foxconn's broken promises.
The good news is the proposed giveaway to Foxconn is getting enough well deserved critical scrutiny that it may not get done. The bad news is that if this deal, which has the earmarks of being unserious from the outset, falls apart, it will be used to blame anti-business interests and deflect attention from sounder approaches for creating good jobs…like the glaringly obvious need for more infrastructure spending.
Foxconn’s Con: Seeking Whopping Subsidies for Wisconsin, Michigan Manufacturing Jobs…If They Happen
[Yves Smith/Naked Capitalism]
(Image: Alexander Kaiser, CC-BY)
Thomas Piketty, the French economist behind 2014's game-changing Capital in the 21st Century, has a new book, Capital and Ideology (out in France now, coming in English in 2020), which uses the same long-run economic series that Capital 21C benefited from to understand the relationship between wealth and ideology. Central to Piketty's thesis: that it's […]
AB5 is about to pass the California legislature: it forces companies like Lyft and Uber to comply with the longstanding Dynamex decision and treat their employees as employees.
The NCAA is notionally an "amateur" league, but the only thing amateur about it is that the athletes (who risk their health and even their lives) are unpaid, while the universities effectively own and operate wildly profitable pro sports teams.
There’s reading for pleasure, and then there’s reading for fuel; absorbing the great ideas in nonfiction books so you can apply them in your own life. In today’s hectic pace, it can be difficult to find the time to do that reading – especially for the entrepreneurs and professionals who can benefit the most from […]
Breaking into the big leagues as a project manager isn’t done overnight, but there are principles that anyone can learn, and they’re applicable to nearly any business. No matter what your field, if there are multiple teams working toward a common goal, you’re going to need a roadmap. The Project Management Professional Certification Training Suite […]
On the one hand, nostalgia is “a corruption of the historical impulse,” according to William Gibson. On the other hand, “Super Mario Bros.” will never not be cool. Luckily, there’s a way to satisfy that retro gaming while still keeping an eye on the future: The GameShell Kit. This thing is simultaneously the last handheld […]