The Foxconn deal Trump championed won't make Wisconsin money for 25 years

[spanone]

The deal President Trump called "incredible" and Gov. Scott Walker hailed as "once-in-a-century" opportunity to bring the electronic manufacturing giant Foxconn to Wisconsin wouldn't generate profits for the state until 2042, a new legislative analysis projects.

The state's Legislative Fiscal Bureau, a nonpartisan agency that analyzes proposed economic investments, looked at Walker's bid last month to bring a new flat-screen display factory to the state in exchange for a roughly $3-billion incentives package.

Foxconn said it would break ground in southeastern Wisconsin and hire 3,000 workers there over the next four years, with the "potential" to create 13,000 jobs.

If the company hits that growth target, Wisconsin would break even after 25 years, said Rob Reinhardt, a program manager who worked on the report. If 13,000 jobs never materialize, it could take decades longer.

http://triblive.com/business/headlines/12603948-74/the-foxconn-deal-trump-championed-wont-make-wisconsin-money-for-25-years

[dalton99a]

1. Typical GOP corporate welfare scam

[snowybirdie]

2. Probably longer

if the deal gets held up in court because of relaxation of water regulations. Illinois, Indiana and Michigan aren't going to like them messing with Lake Michigan water. This deal won't happen

[Initech]

3. The art of the deal, folks!

[malaise]

4. Like he gives a fugg

He stole the state with help from Ryan, Priebus and Walker

[FSogol]

5. Actually, it is $3 billion in corporate welfare to FoxCONn paid by the taxpayers.

http://boingboing.net/2017/07/29/we-do-get-fooled-again.html

[WePurrsevere]

6. So what happens when LCD screens become obsolete? Does the...

contract with Foxconn specify a minimum amount of time they must stay & keep jobs in that area? (25 yrs is a fairly long time but especially when discussing technology.) Does it specify a minimum amount of jobs (and wage) they must provide and what happens if the company goes belly up, sold, etc? Also are there any minimal environmental regulations they must meet?

Jobs are great and needed of course but when you have to 'bribe' a company with BILLIONS of dollars to build in your area it seems to me that you need to be very sure to protect the investment your taxpayers are making and minimize their overall risk.

A state offering incentives to build there versus elsewhere is normal but this particular deal seems rather risky on a few levels to me.

[Gothmog]

7. This is a very bad deal for wisconsin

[FreeStateDemocrat]

8. People of wisconsin love bad deals, they voted for ass-wipe and re-elected Johnson, dumb-asses are

in the majority there. Let them get fucked! They have already fucked the rest of the country so turn about is fair play for those enablers.

[Rabrrrrrr]

9. That's only assuming that Foxconn stays that long and/or doesn't blackmail the state later

I could easily see more blackmail from the company ten years down the road, and then, after they've made a fucking killing, declare bankruptcy or some other bullshit reason and close the plant, leaving Wisconsin to pay for the clean up and the lost jobs.

As hard it was on southern Wisconsin when GM closed the plant in Janesville, the amount of money that Michigan offered to bribe GM over there really hasn't paid off.

We need community solidarity around the country that one community can't sell their soul to attract a company in to do business. They need to stand up to corporate bullying and say, "You want to build a business in our state? Awesome! Here's the environmental regulations you'll live up to, here's the minimum/living-wage we expect, here's your responsibility to the state tax rolls... and if you don't like them, then you aren't cost-effective for us to have do business here."

[Orsino]

10. Whereas the plutocrats can start lining their pockets immediately...

...with bonuses to one another for this sweet deal, whether or not it ever turns into a net positive for the state.