The Con in Foxconn Wisconsin

How economic impact studies justify the transfer of wealth from taxpayers to corporations.

This summer, the roar of bulldozers replaced the sound of tractors over thousands of agricultural acres outside of Racine in southeastern Wisconsin. Road, water, and electricity infrastructure construction was well under way for a new industrial complex for Foxconn, the Taiwan-based technology giant. In the project’s master plan, Foxconn will eventually own 4.5 square miles of once-prime Wisconsin farmland, an expanse about a fourth the size of the city limits of nearby Racine, population 77,000. The main 24-inch water main will have the capacity to deliver more than 20 million gallons a day of high-quality Great Lakes water (home to 21 percent of the world`s remaining supply), although initial usage has been promised to be much less. Foxconn has pledged to be good environmental stewards, even as Wisconsin has waived many of its basic environmental regulations in order to expedite the project...


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Ken Notes: There is a great deal of third party speculation on how the Foxconn project will play out. Much of the money promised is predicated on the number of jobs created, and the value of the building. Thus it is only fair to suggest that we really do not know how this will play out.

I hope that a development agreement will protect the communities and the use of tax credits will alleviate the needs for claw-backs. I also wish that these policies we far more formal and available to far more if not all companies in Wisconsin.



- - Volume: 6 - WEEK: 39 Date: 9/27/2018 8:16:58 AM -