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This is not an issue of corruption or necessarily incompetence of either party. 1) 'Tent pole' installations that employ a lot of people create substantial ben
by sonnyblarney 8y ago
This is not an issue of corruption or necessarily incompetence of either party.
1) 'Tent pole' installations that employ a lot of people create substantial benefits way beyond whatever the investment is, at least on that basis subsidies can be rationalized. Of course there can be debate over whether they should be employed, the amount, and the means - and those details matter. But superficially, this is fairly normal practice.
2) You are probably smarter than 'most citizens of Wisconsin' but you're definitely not smarter than Foxconn's strategic planners :). A factory that makes one kind of screen can be adapted to another, and the world is massively bigger than modern markets and there are tons of applications for non-oled screens.
Superficially, again, their plans were within reason.
3) The political logic here, is that Trump was looking to make a 'big announcement' and 'foreign' companies wanted to placate him and give him his needed tweet, and then wait until the wind blows over to change their minds. An 'announcement' to me doesn't really have that much value anyhow, when they 'walk the talk' then we can count.
Remember that none of the '4 Billion' etc. will be realized unless Foxconn does make the investment, so it's not as though there's some kind of incurred debt, just possible lost opportunity cost.
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Assuming the incentives are reasonably structured, and assuming Foxconn does actually start to hire in Wisconsin, well this might work out well. They may only end up hiring hundreds or a couple of thousand of people which case I suggest they aren't able to grab at the 'bilions' in incentives anyhow.
Consider that if Foxconn does not make an investment - even with billions of incentives on the table ... then it almost assuredly is not in their best interest anyhow.
Take these statements mostly at face value, with a grain of salt, but there's no reason to scream corruption or incompetence. There may be some ugliness in the terms of the subsidies, if someone wants to point those out that would be great, I'd love to hear about them.
- icebraining 8y agoIt's not just guarantees; it's also stuff like people having their homes declared "blighted" so that they can be taken away: https://beltmag.com/blighted-by-foxconn/ https://beltmag.com/blighted-by-foxconn/