Friday, August 18, 2017

Trump's Big CON: The Wisconsin Foxconn Jobs CON

UPDATE:  Some think Wisconsin rubber-stamped the bundle of perks with with "no guarantee Foxconn will hold up its side of the bargain.

Kathleen Gallagher, executive director of the Milwaukee Institute, a technology-focused not-for-profit, pointed out that the company has previously pledged to open factories elsewhere that never materialized.

In 2013, Foxconn’s chairman said the firm would build a $30-million factory and hire 500 workers in central Pennsylvania — a promise that has not come to fruition. "

Read the Washington Post, Trump is celebrating the Foxconn deal. The people paying for it aren’t so sure.

"The deal President Trump called “incredible” and Gov. Scott Walker hailed as a “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. . .

Wisconsin [already] has an unusually low unemployment rate (3.2 percent), which is significantly lower than the country’s 4.3 percent. Employers there already complain about having trouble finding workers. . .

If Foxconn fills jobs with workers from neighboring Illinois, where the unemployment rate is 4.7 percent, analysts predict the deal won’t start making money for Wisconsin until 2045."

Read the Washington Post, The Foxconn deal Trump championed won’t make Wisconsin money for 25 years, report says.

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