How Trump got outfoxed and conned by Foxconn Thursday, Jan 31 2019 

Is there anything much more satisfying than a nice, heaping plate of “I told you so”?

The story begins with the world’s greatest businessman and negotiator. I know he is, because he has told me so — many, many times.

Forget his multiple bankruptcies (How does anyone go bankrupt with a gambling casino?) Forget how he has put himself under the thumb of Vladimir Putin, and has been conned by Kim Jong-un.

Forget about that wonderful business, Trump University, for which he was fined $25 million.

And forget about all the indicted and found-guilty incompetents, with whom he has surrounded himself.

The story begins in September, 2017.

Wisconsin Gov. Walker to sign $3 billion incentive package for Foxconn

Image result for trump foxconn

Trump shovels for Foxconn

The Wisconsin Assembly sent a $3 billion incentive package for Taiwan-based Foxconn to Gov. Scott Walker on Thursday, signing off on a deal to lure the electronics giant to the state with the biggest subsidy to a foreign company in U.S. history.

This deal was handled with the usual Trump braggadocio and self-congratulations, which because he is the greatest businessman in history, guaranteed it would be a failure.

Here is an excerpt from a September 2017 post we published about the project, “Who put the “con” in Wisconsin? Foxconn, that’s who.”

This is what I predict:

    1. Foxconn never will hire 13,000 people. Not in a year, not in ten years, not ever.
    2. Many of the people it does hire, will come from neighboring Illinois, will shop in Illinois, and will pay taxes to Illinois. The Chicago commercial area is a must larger source of qualified workers than is the entire state of Wisconsin, and it is nicely convenient via road and commuter rail.
    3. Republican pols, upon receiving advance info about which land Foxconn plans to use, will buy it early, making out like bandits. They probably already have begun to acquire options.
    4. Foxconn, having demanded a direct line to a politically leveraged Wisconsin Supreme Court, easily will fend off any challenges to its sweet deal.
    5. Foxconn will pollute Wisconsin’s land and water, and if sued, will win its case in the highly political, dysfunctional, right-wing, pro-business, anti-environment Wisconsin Supreme Court.
    6. Screwed Wisconsin taxpayers, will pay big, and never will see any net benefit.

    “Walker joined President Donald Trump in announcing Foxconn’s plans to build in Wisconsin at a White House event in July, heralding it as a game-changer for American manufacturing.”

    So there it is. In addition to being a giveaway to big business and to greedy politicians, and a rip-off of the average taxpayer (the Republican standard operating procedure), the Foxconn deal provides endless bragging rights to Trump and Walker for all the non-existent jobs they will claim they brought to Wisconsin.

    Trump and Walker will be long gone from office by the time the Wisconsin taxpayers figure out they are enmeshed in this deal, forever.

Well, I was wrong about one thing. Trump still is in office, and still bragging and failing, but already the headlines are rolling in:

‘Foxconn Was a Major Con’: Backed by Trump Promises and $4 Billion in Subsidies, Company Admits Factory Jobs Not Coming
Posted on January 31, 2019 by Yves Smith

And:

TRUMP’S “INCREDIBLE” FOXCONN FACTORY DEAL WILL NO LONGER INCLUDE A FACTORY
Vanity Fair, Hive; BY BESS LEVIN
JANUARY 30, 2019 5:49 PM
The Taiwanese company, which received more than $4 billion in tax subsidies, is scrapping its initial plans, but will keep the money, thanks.

And:

Wisconsin is finally facing the reality of Foxconn’s plans
By Tim Culpan, Chicago Tribune, Jan 31, 2019

So Foxconn Technology Group may not make display panels in Wisconsin after all.

Those who’ve been following Foxconn for a long time won’t be surprised. Chairman and founder Terry Gou is as much a salesman as he is a manufacturer, having spent decades honing his pitch not just to clients but also governments.

Then-Gov. Scott Walker, backed by President Donald Trump, loved exactly what he sold: the promise of thousands of jobs to make stuff in the U.S. Walker loved it so much that he pledged as much as $3 billion in sweeteners, a deal that likely cost him his governorship.

Now, according to a Reuters interview with one of Gou’s right-hand men, such plans to manufacture display panels may be scaled back or even shelved.

Foxconn’s Wisconsin-made screens likely would have been put into televisions. Woo this week acknowledged that “in terms of TV, we have no place in the U.S. … We can’t compete.”

It’s simply a matter of economic reality. The same reality that existed when Trump was handing out red truckers’ hats and promising to Make America Great Again.

Foxconn’s U.S. panel project didn’t make sense, evidenced by a comment Gou himself made saying that such plans weren’t a promise but a wish.

Foxconn is now publicly conceding that manufacturing panels in Wisconsin isn’t viable.

In 2018, the first year of the Wisconsin experiment, the company couldn’t hit its employment target. Instead of creating a very modest 260 full-time jobs, Foxconn filled just 178 positions, Reuters reported.

And that, you folks who voted for Trump, is what $3 billion will buy you, if you have the world’s greatest negotiator working the deal and bragging about it, afterward.

I told you so.

Now, about that wall he promised, but never even asked for when he had a Republican Senate and a Republican House . . .

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. Eliminate FICA

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Who put the “con” in Wisconsin? Foxconn, that’s who. Friday, Sep 15 2017 

Image result for breaking chains

It takes only two things to keep people in chains:
The ignorance of the oppressed and the treachery of their leaders.

————————————————————————————————————————————————————-

Who put the “con” in Wisconsin? Foxconn, that’s who.

Today, I read an article that I find rather mysterious.  Here are a few excerpts:

Wisconsin Legislature passes $3 billion Foxconn incentive package, sends to Walker
September 14, 2017

The Wisconsin Assembly sent a $3 billion incentive package for Taiwan-based Foxconn to Gov. Scott Walker on Thursday, signing off on a deal to lure the electronics giant to the state with the biggest subsidy to a foreign company in U.S. history.

Democrats have raised alarms about exemptions under the bill that waive requirements for Foxconn to first develop an environmental impact statement before constructing what could be a 20-million-square-foot campus.

Foxconn would also be allowed to build in wetland and waterways.

Opponents objected to a provision that would allow the Wisconsin Supreme Court to take appeals of certain lawsuits related to Foxconn, skipping the appeals court. No other business in the state is provided such an expedited route to the Supreme Court.

Unlike the federal government, which is Monetarily Sovereign, Wisconsin is monetarily non-sovereign. Unlike federal spending, which is funded by federal money creation, not by taxes, Wisconsin spending is funded by taxpayers.

That is a fundamental difference between the finances of a Monetarily Sovereign government and the finances of a state or of people like you and me.

Image result for wisconsin sends money to illinois

Wisconson to welcome workers who live and pay taxes in Illinois?

There are 2.3 million households in Wisconsin. So a $3 billion incentive package requires each household in Wisconsin to send $1,300 to Foxconn.

Warm up your checkbooks, folks.

What do Wisconsin households get for their $1,300, their potential loss of wetlands, waterways and overall environmental degradation, plus special legal immunities?

Foxconn has said it hopes to open the plant in 2020 with 3,000 workers, but that the workforce could grow to 13,000.

IF the plant opens with only 3,000 workers, taxpayers would have paid $1 million for each worker.

In the theoretical, best-case scenario (“best case” = “highly unlikely”) scenario of 13,000 new workers, Wisconsin taxpayers would have paid each worker $230,000.

One wonders whether Wisconsin taxpayers merely should have given 13,000 workers $230,000 each and eliminated the Foxconn middleman.

Assembly Democrats slammed the proposal Thursday as being unfairly rigged to benefit Foxconn at the expense of taxpayers.

Rigged? You think?

But Republican Assembly Speaker Robin Vos (said) “What’s rigged is the deal for the taxpayer, the workers, the families and ultimately those of us who have the good foresight to realize when a good deal is put in front of you,” Vos said.

The total incentive package is 10 times larger than anything ever approved in Wisconsin and would be the biggest state subsidy to a foreign company in the United States.

The Assembly passed the bill with all Republicans and four Democrats in support. Two Republicans joined all other Democrats against.

Doesn’t it seem odd, that the Republican Party, the anti-tax party, should be so willing to raise taxes by $3 billion dollars, with so few guarantees about the results?

Any wonder why the Democrats, who traditionally support factory workers, are so suspicious of a deal that only purports to add factory workers?

Critics have warned that there aren’t enough protections for taxpayers to recover payments to Foxconn if it automates production and fires workers.

Image result for foxconnFoxconn is a high-tech company.

Can there be any doubt that this high-company absolutely will automate to the best of its high-tech ability?

That long line of Chinese women doing tedious, boring, mind-numbing hands-on labor at ridiculously low wages, will not be duplicated in Wisconsin.

Instead, I predict you will see a long line of robots working for zero wages.

In short, without having any inside knowledge, I predict there never will be 13,000 workers and that Wisconsin taxpayers never will see a return on their investment.

So what is going on here?

They’ve also said more needs to be done to guarantee that Wisconsin workers and businesses get preference during the construction phase of the plant, and once it’s up and running.

The Walker administration is charged with negotiating minimum hiring numbers to trigger the payments in the contract with Foxconn which has not been finalized.

Foxconn has also not selected the exact location for the plant, but it has focused on property in Racine County in between Milwaukee and Chicago.

The city of Racine, Wisconsin is only a half hour’s drive from Illinois and “greater Chicago,” and only an hour from Chicago’s city limits.

If the plant is built in Racine County, but south of the city of Racine, it will be even closer to Illinois’s rich source of labor.

Not only is there no guarantee that “Wisconsin workers and businesses will get preference during the construction phase,” but there is no guarantee about how many current Wisconson residents will be hired after the plant is built.

The Walker administration, who championed the deal, will negotiate the hiring numbers that trigger payments. That sure seems like a “fox-guarding-the-hen-house” type of arrangement.

In summary, the Republican anti-tax party votes to increase taxes on the citizens of Wisconsin, for a nebulous return that will be overseen by the Republican who sponsored the deal.

So what the heck really is going on?

This is what I predict:

  1. Foxconn never will hire 13,000 people. Not in a year, not in ten years, not ever.
  2. Many of the people it does hire, will come from Illinois, will shop in Illinois, and will pay taxes to Illinois. The Chicago commercial area is a must larger source of qualified workers than is the entire state of Wisconsin, and it is nicely convenient via road and commuter rail.
  3. Republican pols, who will receive advance info about which land Foxconn plans to use, will buy it early, making out like bandits. They probably already have begun to acquire options.
  4. Foxconn, having demanded a direct line to a politically leveraged Wisconsin Supreme Court, easily will fend off any challenges to its sweet deal.
  5. Foxconn will pollute Wisconsin’s land and water, and if sued, will win its case in the highly political, dysfunctional, right-wing, pro-business, anti-environment Supreme Court.
  6. Screwed Wisconsin taxpayers, will pay big, and never will see any net benefit — and here’s the big one:

 
“Walker joined President Donald Trump in announcing Foxconn’s plans to build in Wisconsin at a White House event in July, heralding it as a game-changer for American manufacturing.”

So there it is. In addition to being a giveaway to big business and to greedy politicians, and a rip-off of the average taxpayer (the Republican standard operating procedure), the Foxconn deal provides endless bragging rights to Trump and Walker for all the non-existent jobs they will claim they brought to Wisconsin.

Trump and Walker will be long gone from office by the time the Wisconsin taxpayers figure out they are enmeshed in this deal, forever.

Illinois stands to benefit from a plant just across the Wisconsin border, as O’Hare Airport could get more traffic, workers living in Lake County, IL could make the commute and small businesses could step up to cater to workers’ needs.

Most important is the potential for Foxcomm’s suppliers to set up shop in the (Illinois) vicinity.

As a resident of Illinois, I would like to thank our generous neighbors to the north. Illinois taxpayers sure could use the money.

Wisconsin taxpayers will sing a new tune: ♫ “Who put the ‘con‘ in Wisconsin? Foxconn, that’s who” ♫

On Wisconsin!

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

MONETARY SOVEREIGNTY

%d bloggers like this: