I picked up this version 4 BS lies of Trump and Scott Walker’s Imaginary Foxconn Factory on Tom Bozzo’s facebook page where I stopped to see what he had to say as of late. While it is a great attention grabber, a link caught my eye in Wonkette’s article leading to this America and the Foxconn Dream . This morning Ken Thomas has his very thorough analysis Foxconn Cashes in for $3 Billion-Plus: Analysis up. The first being the wonkier, the 2nd is a Bloomberg discussion, and Ken’s is an analysis on a topic he pursues, government subsidizing business. And this one ??? I am not sure yet.
You look at the picture and you see Ryan smirking in the background, a smug looking Trump smug face, and Mr. Terry Gou in a slight bow looking directly at Trump. I have seen the look before. Typically, this look comes from an Asian associate when they have taken what they want at your expense. Trump has been beating the protectionist drum loudly these days when talking to our neighbors Mexico and Canada. He has threatened China and other countries as well.
Mr. Terry Gou the CEO of Foxconn said he would only come to the US if the chosen location met Foxconn’s demands, which of course Walker with the aid of Paul Ryan did do. The facility is located in Paul Ryan’s backyard. And the threat of having tariffs placed on Foxconn products has dissipated. Foxconn will invest $10 billion in a factory some say will be 20 million square feet and create 3000 jobs of roughly 6600 square feet for each US worker. Sounds more like a warehouse to me even if they stuck 160 foreign made robotic manufacturing cells (Tesla did such) in it. More than likely, this will be an assembly operation with components and assemblies coming from Foxconn and Foxconn suppliers. The value-add will be out of country.
So what does all of this get Wisconsin for shelling out $519 per Wisconsin constituent and the US also?
According to Bloomberg’s Tim Culpan; “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 is expecting $3.3 million of investment per employee from the Taiwanese company”.
Foxconn does not have a history of doing what it says and agrees to do. In Pennsylvania, Foxconn pledged $30 million to build a plant and hire 500 workers. It never happened. A pledge of $1 billion to build a plant in Indonesia dissipated also. Foxconn’s division Hon Hai has not spent 10 billion in any single year on infrastructure nor has it spent as much if one combines the last five years. Walker’s boondoggle may be mostly hype and a way to insure he is reelected in 2018.
I wonder why Walker is not in the picture with Ryan and Trump? Maybe out building his used car business for when he is not reelected?