Its not as dire as you think
Foxconn was offered over a billion in tax incentives based on 13,000 jobs
That didnt happen so the tax incentives were reduced
Foxconn Technology Group broke ground for a new flat-screen plant in Mount Pleasant, Wisconsin. The Taiwanese company plans to invest $10 billion there, but the state will give it tax credits of as much as $4 billion, by far the largest corporate subsidy in Wisconsin history. It will also be the biggest handout in American history to a corporation based outside the United States. Governor Scott Walker, who is running for a third term, and President Trump have both praised the deal as clear evidence that Republicans have brought manufacturing back.
This was written in 2018 and it's even worse than what they thought. No jobs created. Wisconsin just got hosed. By a foreign company. I'm sure Trump got his kickback.
Unsurprisingly, Walker did not come close to fulfilling his promise on jobs. Indeed, neighboring Minnesota under Democrat Mark Dayton created more jobs and had significantly higher wage growth than Wisconsin during the same period. But Foxconn allows Walker to claim that his policies are indeed bearing fruit. At least in the short term, he may be right: Foxconn plans to employ 13,000
But the deal will cost the state a lot more than it will be worth. First, there is the outrageous cost: $3 billion in state tax credits, $1.5 billion of which is tied to the number of jobs paying above $30,000 a year created and maintained through 2032. Walker and the Republican legislature, however, have already cut the tax rate to almost zero for manufacturers in Wisconsin, so almost all of the “credit” will be direct payments to Foxconn—a giant subsidy that taxpayers will take on for the next decade and a half. Meanwhile, the governor and the legislature cut more than $2 billion from public education during his first five years in office.
It gets worse: the task of negotiating the details went to the Wisconsin Economic Development Corporation (WEDC), which is basically a black box of cronyism and wasted money. To get the credits, Foxconn’s jobs must average about $54,000 a year. Walker and WEDC initially wanted the ceiling for computing the mean salary to be $100,000. Under pressure to get the deal done, however, they relented to Foxconn’s demands, raising the ceiling to $400,000. Thus, for every employee making the latter figure, the company could hire another fifteen making $30,000 a year and still max out the payments.
If the company’s deplorable record elsewhere is any indication, Foxconn workers will likely find it difficult to unionize—which will suppress wages and likely reduce worker safety and job security. Indeed, one can imagine that Walker’s singular hostility to unions probably factored into the decision of billionaire Foxconn chairperson Terry Gou’s decision to do business in Wisconsin. It is too early to gauge the impact of right-to-work on building trade unions, but the state’s percentage of union workers continued its decline after the law was passed in 2015.
There is also no guarantee Foxconn workers will keep their jobs for long: the company’s stated goal—at least in its China factories—is to completely automate its workforce. With billions invested in new robotic technology, Gou might very well seek to automate much of the Wisconsin facility, too. Thus, Foxconn could conceivably employ 13,000 workers until 2032 when the tax incentives expire and then replace most of them with robots. Even if the jobs are worth the current investment, environmentalists have pointed to the plant’s deleterious impact on the environment, and authorities in Southeast Wisconsin are abusing eminent domain to dispossess residents of their houses to make way for it.
Despite his broken promises, Walker has proven himself to be an adept politician.
Touted by Republicans as a case study in reviving U.S. manufacturing, Foxconn's new factory in Wisconsin only reveals the failings of the GOP agenda. To defeat Scott Walker in November, Democrats will have to show there's a better way to create good jobs.
www.dissentmagazine.org