
Wisconsin's Foxconn Boondoggle Is Getting Worse - jdkee
https://reason.com/2019/10/24/wisconsins-massive-foxconn-boondoggle-is-getting-worse/
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mdorazio
It's important to note that to a large extent, this is the reality of bringing
consumer goods manufacturing back to the US. The only way it will ever make
financial sense for companies to do so is if it either comes with a massive
subsidy or if the number of human jobs is small. Any deal promising thousands
of blue collar jobs doing what is far cheaper to do elsewhere should probably
be regarded as bullshit until proven otherwise.

Note: this does not necessarily apply beyond "cheap" consumer goods. For
example, cars and trucks are still produced at many US plants for a variety of
reasons.

~~~
RaiseProfits
In the long term a supply chain that is predominantly local will consume fewer
resources and be more resilient to disruption. This isn’t always possible but
the incentives you’re referring to are only because us corporations optimize
short term profits over sustainable businesses.

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microcolonel
> _us corporations optimize short term profits over sustainable businesses_

Speak for yourself. I think the investor culture is where this comes from,
more than from the people operating the businesses.

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Arn_Thor
As long as a business' primary responsibility is to shareholders rather than,
say, the local community, the consumer or the environment then that won't
change. Investors are a big part of it, yes, as they demand quick returns
today rather than steady returns years from now.. but the fundamental problem
is that investors' demands set the pace because of the structure of the
structure of the entire economy

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SamReidHughes
It's more basic than that. Businesses can't operate if they run out of money.

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RaiseProfits
It’s also a hell of a lot more complicated than that. Investing is only one
income source, and companies like Amazon and Walmart are counter examples to
my own reduction. I think there are cultural elements at play here on why more
companies don’t take a longer views and investors/certain business schools are
an obvious place to look.

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cassieramen
I really recommend this podcast on how negatively this deal affected the town
the center piece plant was targeted for. [https://gimletmedia.com/shows/reply-
all/wbhjwd](https://gimletmedia.com/shows/reply-all/wbhjwd)

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campfireveteran
Vulture capitalism strikes again, exploiting undiversified, banana republic
rustbelt towns who misplace their faith in a single, quick-fix, recovery
panacea rather than many different industries that are geared to the needs of
today.

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jdavis703
I imagine a lot of readers are taking umbrage at these towns being called
“banana republics.” Honestly a lot of American town and city councils can be
described this way, regardless of where in the US they are. I write this as an
American who has been to too many local government meetings over my life.

~~~
knightofmars
Yes. There are way to many local government representatives who think they can
go "toe to toe" with the lawyers and officers of multinational corporations.
They often take promises from those corporations at a word and don't (or
can't) hold the corporations accountable when promises aren't kept. Inevitably
the local representatives, and the constituents they represent, are left
holding the short end of the stick.

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bilbo0s
To be fair, as far as people in Wisconsin are concerned, the deal can't really
get any _worse_ , per sé. It was already pretty clear that we'd been hosed a
long time ago. Then, mercifully, the trade war came along and may kill it
completely if the Gods favor us!

It's not often that you play poker with the Devil, and due to a technicality
in his contract for your soul, you're allowed to fold and walk away. If you
ever get that lucky, you just cut your losses, walk away, and count your
blessings.

~~~
microcolonel
> _the trade war came along and may kill it completely if the Gods favor us_

Why would the trade war with China kill off this deal with a Korean company?

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pcr0
Foxconn is a Taiwanese company with close ties to the Chinese government. Not
Korean

~~~
microcolonel
Wow, I had a massive brainfart. My brain thought GP was talking about the LG
factory.

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ars
If they are not keeping their deal, can the state just not give them the tax
breaks or whatever was promised?

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0xADADA
Follow along with this story, its a crazy rabbit hole into a late-capitalism
where actual production of goods is completely abandoned, and instead the
state directly funds 100% pure profit with no social or productive benefits.
Literal pure theft.

* Foxconn scraps plan to build factory in Wisconsin, will hire white-collar workers instead [https://www.washingtonpost.com/business/2019/01/30/foxconns-...](https://www.washingtonpost.com/business/2019/01/30/foxconns-plan-giant-wisconsin-factory-now-looks-uncertain/) * Foxconn and the village: the $10B factory deal that turned one small Wisconsin town upside down [https://www.theverge.com/2018/12/6/18128133/foxconn-deal-wis...](https://www.theverge.com/2018/12/6/18128133/foxconn-deal-wisconsin-factory-mount-pleasant-trump-reply-all-sruthi-pinnamaneni) * What Foxconn’s really doing in Wisconsin, with Reply All’s Sruthi Pinnamaneni [https://www.theverge.com/2018/12/11/18136020/foxconn-wiscons...](https://www.theverge.com/2018/12/11/18136020/foxconn-wisconsin-deal-reply-all-vergecast-interview-sruthi-pinnamaneni)

