[HN Gopher] Wisconsin has negotiated a dramatically scaled-back ...
       ___________________________________________________________________
        
       Wisconsin has negotiated a dramatically scaled-back deal with
       Foxconn
        
       Author : pseudolus
       Score  : 157 points
       Date   : 2021-04-22 11:33 UTC (11 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | mbesto wrote:
       | No one saw this coming.
        
       | whoomp12342 wrote:
       | GOod. kick em out. WI doesnt want foxconn anyways
        
       | notional wrote:
       | The absolute hilarity of HN obsession with 'both siding' every
       | story and going back to see how it unraveled over the years.
       | 
       | on Jan 22, 2017 - https://news.ycombinator.com/item?id=13457176
       | 
       | on Jan 16, 2018 - https://news.ycombinator.com/item?id=16163558
       | 
       | on April 14, 2018 - https://news.ycombinator.com/item?id=16839542
       | 
       | on Oct 29, 2018 - https://news.ycombinator.com/item?id=18328772
       | 
       | on April 12, 2020 - https://news.ycombinator.com/item?id=22850723
        
       | Invictus0 wrote:
       | Can someone explain to me why Foxconn didn't build the plant? Why
       | would they go through the trouble of negotiating this deal, which
       | ended up phenomenally in their favor, just to throw their hands
       | in the air and walk away?
        
         | jerry1979 wrote:
         | I think it shows the idea that "Americans can't do business
         | well", and historically, doing business well has been one thing
         | that Americans pride themselves on.
         | 
         |  _edit_ I should add that I believe that spreading that kind of
         | message has geopolitical implications, and that groups might
         | want to create that image for strategic reasons.
        
         | al2o3cr wrote:
         | Short story shorter: Terry Gou is a serial bullshitter
         | 
         | https://www.theverge.com/21507966/foxconn-empty-factories-wi...
        
         | jcranmer wrote:
         | From what I can tell, Foxconn never actually intended to build
         | the plant. (I'm getting a lot of this from an interesting long-
         | form article on the history of this deal; unfortunately, I
         | don't remember where I found this article, sorry).
         | 
         | Essentially, Foxconn thought that the Wisconsin deal would work
         | more typically as its deals in China went. Glad-hand the
         | government officials, get sweetheart deals on land and
         | investment, and as long as you're not totally incompetent in
         | making use of it, they won't care what you do with it, even if
         | you fail to live up to the original promises. It's not clear to
         | me that Foxconn actually seriously considered producing LCD
         | screens here given this light; the announcement would have been
         | more to make Walker and other government officials ecstatic
         | about the deal than an actual commitment to follow through. The
         | fact that outrage towards the deal would lead to Walker losing
         | reelection and his successor keeping a much closer eye on
         | performance (or lack thereof) seems to me to have caught
         | Foxconn completely off-guard.
         | 
         | I think there's another level going here in relation to
         | internal Foxconn politics, but my recollection is too hazy to
         | make a coherent explanation, and I don't want to make any false
         | accusations here, so I won't go into any more detail.
        
           | KZZ wrote:
           | For information, the plant has been built. The building is
           | there, just empty.
        
             | sbierwagen wrote:
             | The machines inside a LCD factory are dramatically more
             | expensive than the building itself. The "plant" has not
             | been built in any meaningful way.
        
             | aaaaaadsfscxva wrote:
             | Curious
        
               | aaaaaadsfscxva wrote:
               | en efecto
        
             | superkuh wrote:
             | Nope. The plant that was promised was never built. They did
             | build some storage warehouses and started a propaganda
             | program where they hired dozens to hundreds of locals to
             | come in to the warehouses, sit around, and do nothing to
             | appear like they were doing something.
        
           | MAGZine wrote:
           | I believe you're remembering this story:
           | 
           | https://www.theverge.com/21507966/foxconn-empty-factories-
           | wi...
        
             | jcranmer wrote:
             | Yes, that does look like the one I was remembering.
        
         | pen2l wrote:
         | In a nutshell, it mistook the nature of labor folks are used to
         | here and its costs. Indeed wildly different from China and
         | elsewhere.
        
           | AlexandrB wrote:
           | This is a take that's wildly generous to FoxConn, painting
           | them as the "aww schucks" kinda honest guys that just didn't
           | know about the challenges of the US labor market.
           | 
           | The alternate take is that the whole deal was made in bad
           | faith and FoxConn was hoping to collect subsidies and line
           | its pockets. This version of events has some precedent[1].
           | It's especially hard to believe that FoxConn didn't know
           | about US labor when this same situation played out in
           | Pennsylvania in 2013[2].
           | 
           | [1] https://www.marketwatch.com/story/foxconns-history-of-
           | broken...
           | 
           | [2] https://www.washingtonpost.com/business/economy/how-
           | foxconns...
        
             | analog31 wrote:
             | It's not unprecedented that someone who should know better,
             | and has the best advisors in town, is blinded by their
             | preconceptions about a country and its people. It's lost us
             | a few wars.
        
             | MomoXenosaga wrote:
             | You know what's bad faith? Politicians bullshitting that
             | these kind of factory jobs are ever going to come back.
             | 
             | My smartphone will never be assembled in the US or Germany.
        
               | npongratz wrote:
               | I'm not saying it's economical, but anyone willing to pay
               | 2.5x the cost of a Made-in-China phone _could_ have their
               | phone assembled in the United States:
               | https://puri.sm/posts/librem-5-usa/
               | 
               | (No relation to the company, though I did once have a
               | very nice chat with Todd Weaver).
               | 
               | And to the larger point: I agree completely that
               | politicians opening their mouths about jobs (and also
               | about anything else, IMO) is bad faith bullshit.
        
               | dqpb wrote:
               | It will never be assembled by humans in the US, but we
               | should strive for US based robotic manufacturing.
        
               | pokot0 wrote:
               | This is the key people often overlook. If we stop using
               | our AI geniuses to develop tracking algorithms and start
               | building automation, we can have nextgen factories in the
               | West. The environmental factor is yet to be solved
               | though. For the most part, developing countries are
               | trading environmental damage for money. Not much
               | different from harvesting oil or other resources to an
               | economist.
        
               | moneybaggins wrote:
               | Well let's see, work in adtech and make $1M TC and get
               | treated with kid gloves by the company or work in
               | industrial engineering and make $100K and be a cost
               | center. How do we change the incentives? Ban advertising
               | and tracking? But making the alternative more attractive
               | is out of the cards...
        
               | kevin_thibedeau wrote:
               | Physical manufacturing doesn't have the sort of profit
               | margins that software provides. You can't give devs the
               | kind of pay many expect when there are 10x more people in
               | the production chain. Investors aren't going to flock to
               | such businesses.
        
             | Loughla wrote:
             | You're 100% spot on. I cannot be convinced a multi-national
             | mega-corp is ignorant of US labor and the challenges in the
             | US labor market. There just is no way that's possible for a
             | company this size, or am I wrong?
             | 
             | So that leaves either bad faith, or they are just abjectly
             | incompetent. I can't really see any other options. Or,
             | again, am I way off base?
        
               | jfb wrote:
               | I mean, it was bullshit from jump street, but if
               | Wisconsin had poured (more) money into Foxconn's pockets,
               | I'm sure they'd have been happy to put _something_ up.
        
               | KZZ wrote:
               | For the record, they have put something up. Currently 1
               | large empty buildings and 2 medium sized, filled
               | buildings. Also one perplexing glass globe.
        
               | chrisjc wrote:
               | > I cannot be convinced a multi-national mega-corp is
               | ignorant of US labor and the challenges in the US labor
               | market.
               | 
               | Especially one that is a specialist in harvesting
               | laborers from all corners of the world. I can only
               | imagine selecting the right labor force has to be their
               | main competences.
        
           | 1cvmask wrote:
           | It's funny that they are downvoting you for stating the
           | obvious no-brainer explanation.
           | 
           | Just curious as I am seeing more of this on HN lately or is
           | it just the Baader Meinhof phenomenon after I read someone
           | else complain about the recent downvoting phenomenon for
           | stating the obvious. Has the readership changed of HN or more
           | specifically the commentariat?
        
             | Semaphor wrote:
             | > Has the readership changed of HN or more specifically the
             | commentariat?
             | 
             | My personal impression is, that it got a lot worse since
             | Covid, which I attribute to more people doing home office
             | and/or having more free time. Any discussion forum that
             | grows gets worse.
             | 
             | But both my impressions and the 2nd part might be wrong.
        
               | 1cvmask wrote:
               | I think you nailed it with Covid. Critical thinking
               | requires discourse, and discourse on all the
               | possibilities beyond the dominant narratives or
               | paradigms. Downvoting does not make reality or the "ugly"
               | truth go away. We should be here to discuss and not be
               | afraid to ruffle feathers and have easily offended
               | sensibilities.
        
               | sigmaprimus wrote:
               | Beat me to it!
        
               | sigmaprimus wrote:
               | Since You qualified your own statement as being possibly
               | being wrong, I would argue that more engagement alone
               | doesn't result in more down votes.
               | 
               | I have observed that any comments criticizing anyone,
               | regardless of wether they are justified or not seem to be
               | recieved poorly on modern forums.
               | 
               | I believe this is due to an ongoing effort to make forums
               | safe spaces, somehow honest critical thinking is no
               | longer accepted in the current environment. Right or
               | wrong, it is what it is.
               | 
               | So if You are really concerned with the fake points You
               | are accumulating then just tow the line, get with the
               | woke SJW movement or submit articles of interest to
               | balance out the backlash from the mob....I probably
               | better start looking for a good article :P
        
               | 1cvmask wrote:
               | And the downvotes on your comments begin....
        
               | sigmaprimus wrote:
               | Yup, it is what it is. Good news is the points mean
               | nothing and there are plenty of critical thinkers still
               | on this forum. BTW is it tow or toe the line? Homonyms
               | always catch me up!
        
               | 1cvmask wrote:
               | Toe.
               | 
               | https://en.wikipedia.org/wiki/Toe_the_line
        
               | iainmerrick wrote:
               | _Any discussion forum that grows gets worse._
               | 
               | Huh! I hadn't thought about it in such stark terms
               | before, and I'd _like_ to disagree, but there may be
               | something in that.
               | 
               | Is that an original thought, or did you get it from
               | somewhere? It sounds like something that should be an
               | eponymous law.
        
               | Semaphor wrote:
               | While it's similar to Eternal September, it's not exactly
               | the same. It's more that the more users there are, the
               | more average things become. And I have a pretty low
               | opinion of the average person.
               | 
               | It's very visible on Reddit. Large subreddits have either
               | very strict moderation, or they are low quality (I'm
               | excepting picture subs here because they work
               | differently)
        
               | CydeWeys wrote:
               | Eternal September.
        
               | iainmerrick wrote:
               | Ah, yes! But that applied to the internet as a whole,
               | rather than individual forums.
        
               | CydeWeys wrote:
               | It does apply to specific discussion venues. Originally
               | it was about Usenet groups, not the Internet as a whole.
               | It applies broadly to any forum-like venue.
        
             | rideontime wrote:
             | The downvotes might be coming from people who are actually
             | familiar with the situation and know that the "obvious no-
             | brainer explanation" isn't the correct one.
        
             | bildung wrote:
             | Is it really a no-brainer that a giant transnational
             | company signed a multi-billion dollar deal without _anyone_
             | investing half a day looking into the situation of the
             | labor market of the target region?
        
             | DaedPsyker wrote:
             | You say stating the obvious and yet it simply isn't. It was
             | a heavily subsidised political stunt that Foxconn could
             | half-ass. They rolled out the red carpet, exempted them
             | from environmental regulations and basically built the
             | infrastructure for them. Even four years ago they said the
             | number of jobs was a wish not a promise, they were BS
             | artists.
             | 
             | They weren't some naive tiny company.
        
             | Loughla wrote:
             | I genuinely don't understand how 'international mega-
             | corporation doesn't understand international labor
             | differences' is a no-brainer. Please explain that to me.
             | That seems like one of the first things that any company
             | should evaluate.
        
               | saalweachter wrote:
               | Honestly? I assume the people who negotiated the deal are
               | a different department from the people who would have
               | implemented the deal. They went big and went home and now
               | it's someone else's problem.
        
             | pen2l wrote:
             | It wasn't really my take or opinion, I rather recalled it
             | being cited as the reason by Foxconn itself in multiple
             | instances. Also, I'm from Wisconsin, and an old EECS
             | professor explained this to be the reason from his first-
             | hand knowledge of some conversations with Foxconn. Here is
             | one citation I was able to find quickly:
             | 
             | https://www.reuters.com/article/us-foxconn-wisconsin-
             | exclusi...
             | 
             | He said the company was still evaluating options for
             | Wisconsin, but cited the steep cost of making advanced TV
             | screens in the United States, where labor expenses are
             | comparatively high.
             | 
             | "In terms of TV, we have no place in the U.S.," he said in
             | an interview. "We can't compete."
             | 
             | Foxconn has factories in Mexico, Chennai, Malaysia etc.
             | which produce a significant amount of devices but I doubt a
             | factory in US will take off. This article from 2012 about
             | the Steve Jobs "These jobs are not coming back" remark is
             | probably still true:
             | https://www.nytimes.com/2012/01/22/business/apple-america-
             | an...
        
               | buran77 wrote:
               | > I rather recalled it being cited as the reason by
               | Foxconn itself in multiple instances.
               | 
               | It's more plausible that any company will give the more
               | acceptable, easily digestible explanation, rather than
               | the real one.
               | 
               | But really it's the politicians who won, first by banging
               | their chests for all the investments and jobs they
               | created, now for getting an easy out. They can't be
               | blamed for not seeing through any ploy because they can
               | argue Foxconn obviously had good intentions sabotaged by
               | "a misunderstanding" that couldn't have been caught.
               | 
               | It's very unlikely (by that I mean close to impossible)
               | that Foxconn just "blundered", went through many rounds
               | of negotiations, and started building, while genuinely
               | not being aware that the US labor market is different
               | from the Chinese one.
        
               | KZZ wrote:
               | The new approach is contract manufacturing for customers
               | who are uncomfortable with manufacturing being performed
               | in China, speaking from first-hand experience. This
               | demand does exist and is what is going to be leveraged in
               | the new park.
        
               | smt88 wrote:
               | You're being downvoted likely because of how naive it
               | sounds when you take what Foxconn says at face value.
               | 
               | Large companies are unlikely to ever tell the truth about
               | their motivations, but they're even less likely to when
               | they were doing something manipulative and dishonest, as
               | Foxconn was here.
        
               | CydeWeys wrote:
               | Your mistake here is taking a multinational corporation
               | at its word, especially one known for playing games with
               | subsidies in other countries too. These quotes are the
               | cover story from corporate PR, not the truth.
        
               | LargeWu wrote:
               | The alternative is that Foxconn is lying, and they never
               | had any intention of actually opening the factory, which
               | I think is a far more likely explanation.
        
         | Timshel wrote:
         | Good article on the subject:
         | https://www.theverge.com/21507966/foxconn-empty-factories-wi...
         | 
         | My take it was probably mainly a political stunt, lcd was never
         | really possible (slump + wages + supply issues) and then they
         | didn't know what to do.
        
         | sandworm101 wrote:
         | Politics. Political capital. There are international advantages
         | to having the US president endorse you, your project and your
         | company. Those photos were probably worth the hassle.
        
           | [deleted]
        
           | Frost1x wrote:
           | Not just the photos but the initial publicity. People
           | remember the beginnings of things if they're broadcasted
           | through mass media. I recall many people claiming this a 'big
           | win' at the time and attributing to the sitting president. I
           | recall also being highly skeptical and suspecting a political
           | stunt but completely forgot about the status until reading
           | this.
           | 
           | Meanwhile, people at large don't follow progress of these
           | endeavors. Some journalists may but there's selection bias
           | from the journalist and the news consumer as to what they
           | ultimately see and stay informed of. These stunts are
           | forgotten by most (myself included) in the daily scramble of
           | things we have to keep track of and manage. Did it fail? Did
           | it succeed? Do I even remember _it_ or just the emotion it
           | attributed to something else I actually do remember?
           | 
           | Ambiguity hiding in complexity of daily life lets people say
           | and do a lot of things and get away with it. It's often far
           | too difficult and time consuming to unravel the ambiguity and
           | complexity to show if something succeded, failed, or to even
           | have cognitive capacity to keep track of. The end result, as
           | you point out, is political capital people walk away with.
           | The emotional impression at the time is what was sold and
           | stuck to most people. "MAGA", "bringing back
           | manufacturering", links to nostalgic economic golden eras for
           | many workers.
        
         | sct202 wrote:
         | Scott Walker, the governor, who signed the deal lost his office
         | a year after it was signed in part due to backlash over the
         | deal.
         | 
         | Think about it from Foxconn's perspective, if you got a
         | sweetheart deal and the person who gave it to you got canned
         | for it, are you going to follow thru and put in billions of
         | your dollars on the assumption that you'll still get billions
         | of government subsidies in return?
        
           | analog31 wrote:
           | I wonder if it might have been water. They may have needed
           | more than a sweetheart deal with the state. I think a big
           | reason for the location was the water supply via Lake
           | Michigan. They got a waiver of state environmental laws as
           | part of the deal, but they still had to contend with federal
           | laws, _and_ a treaty with Canada that governs water use in
           | the Great Lakes watershed.
           | 
           | There was quite a controversy over the environmental impact
           | of this plant. The "word on the street" is that LCD
           | manufacturing is a dirty industry requiring a lot of water.
        
         | MomoXenosaga wrote:
         | Realized Americans don't want to live in factory compounds for
         | 10 months doing repetitive labour.
        
       | bongoman37 wrote:
       | They should make a law that if a deal is offered to one company,
       | it should be offered to all. That keep the playing field fair and
       | level.
        
       | tfehring wrote:
       | For comparison:
       | 
       | - The deal negotiated by former governor Scott Walker was
       | expected to cost taxpayers between $172k and $290k in government
       | funding per job created. [0]
       | 
       | - $80 million for 1,454 employees, the provisions of the updated
       | deal per TFA, is $55k each.
       | 
       | - The US average cost of similar programs is $24k. [0]
       | 
       | It's not obvious whether this is a good deal, but unlike the
       | original it's not obviously a bad deal.
       | 
       | [0]
       | https://research.upjohn.org/cgi/viewcontent.cgi?article=1244...
        
       | luckylion wrote:
       | Is it just me or has it become more common for journalists to
       | write about decreases by saying "X-fold" or "x times"?
       | 
       | I always get confused, I find it much easier to say "by 97%".
        
         | myrmidon wrote:
         | I believe everyone (with a basic education) _should_ be able to
         | understand both, but I think the X-fold representation is much
         | clearer-- just compare how similar decreases by 80%, 90%, 95%
         | appear at first glance-- but there is a full order of magnitude
         | between EACH of those (while 50% and 55% is basically the same
         | thing)!
         | 
         | Calling it a 5-fold, 10-fold or 20-fold decrease makes the
         | difference between them much more immediately obvious, IMO.
         | 
         | Its similar with the miles/gallon vs. liters/100km metrics for
         | fuel consumption, where one of them just seems immediately more
         | intuitive to grasp and use (to me).
        
           | luckylion wrote:
           | I find x-fold to be totally clear and intuitive for
           | increases, but I find it weird for decreases. "We've
           | decreased it by 5 times" sounds to me like "We've decreased
           | it by 500%", which it obviously doesn't mean. "We've
           | decreased it to 1/5th", "we've decreased it by 80%" makes
           | more intuitive sense to me.
           | 
           | Maybe it is similar to miles/gallon vs liters/100km and
           | depends on where you grew up. I feel like the usage frequency
           | changed, but it could just be that I'm noticing it more.
        
         | TheCraiggers wrote:
         | Many people don't have a clue what "30-fold" even means, and
         | therefore it sounds big and scary. Basically, it's just one of
         | the tools in the sensationalist headlines toolbox.
        
           | afavour wrote:
           | ...is that true? I understand "30-fold" to mean "30x" and I'm
           | pretty sure I have from a very young age. I haven't checked
           | but I'd be surprised if my peers weren't the same.
        
             | LeifCarrotson wrote:
             | I think people understand 30-fold to mean 30x, but don't
             | always intuit that "slashed by 30-fold" is equivalent to a
             | reduction by 97% of the original deal. They especially
             | don't understand that the difference between a 20-fold,
             | 30-fold, and 50-fold reduction is the same as a 95%, 97%,
             | and 98% discount.
             | 
             | This is especially evident in the mental gymnastics
             | required to understand retail sales pricing. How good is a
             | "Buy two, get one 50% off!!" deal? Brains easily give up on
             | the hard questions and substitute easy answers. "What's it
             | actually worth? Bought one at another store last month, do
             | difficult pricing history memory, or easy answer, the
             | original price is listed right there. How good is the deal?
             | Complicated math, or easy answer, it's at least a good
             | enough deal to merit a big sign, bright colors, and two
             | exclamation points. And it's good for a limited time only?
             | Better not miss out, buy now!"
             | 
             | Here, the scope of the reduction is kind of irrelevant.
             | They basically scrapped the old deal and tried to write a
             | new, smaller one. Had they scrapped the megafactory plans
             | and decided to open a fast food franchise it could have
             | been reduced a million fold!
             | 
             | The new agreement offers $80M and asks Foxconn to spend
             | only $672M on a factory that will employ only 1,454 people
             | by 2025. The original deal offered Foxconn $2.85B (or
             | $2850M) to spend $10B ($10000M) and hire 13,000 by 2032.
             | Big numbers are hard, but running the math it's now
             | $55k/job and $0.13/dollar of capital investment, it was
             | $220k/job and $0.285/dollar. $80M is 2.8% or a 30-fold
             | reduction from $2.85B, but the full story is they've
             | simultaneously reduced the ratios of the incentives and the
             | scope of the required investment.
             | 
             | A complete understanding of what those numbers mean is
             | really hard to develop, and isn't really distilled by a
             | substitution in the headline of 30-fold to 30x. Human
             | brains in general are busy and don't like to work too hard,
             | and whether we use "30 fold" like "four score" in our daily
             | vernacular or they say 97% and 80, the headline's effect is
             | the same. It conveys to readers who don't want to run all
             | the numbers about average salaries and payroll taxes and
             | capital depreciation and so on that the previous
             | administration tried to offer an excessively generous deal
             | but the current government has rolled that back to
             | something a lot smaller, don't worry about exactly how much
             | but just trust that it's a lot.
        
         | notRobot wrote:
         | This phrasing always confuses me, slashes 30 fold means that it
         | is now 1/30th the ordinal?
        
         | notRobot wrote:
         | This phrasing always confuses me, slashes 30 fold means that it
         | is now 1/30th the original?
        
           | clankyclanker wrote:
           | Yes.
        
         | phailhaus wrote:
         | It's because percentages are more misleading for humans than
         | "x-times". 95% and 97% sound very close, right? They're not.
         | 95% is a 20x reduction, while 97% is a 30x reduction.
         | Percentages create a singularity at 100, which is why the
         | effect is more pronounced the closer you get to 100.
         | 
         | It's just like how saying something is "95% effective" sounds
         | very convincing until you realize that's a 1-in-20 failure
         | rate.
        
           | function_seven wrote:
           | My favorite example of this were the labels on lunch meats
           | back in the day. They'd say things like, "97% Fat Free!", or
           | "98% Fat Free!".
           | 
           | So one of them had 50% _more_ fat than the other, but they
           | both look pretty close to  "Fat Free"
        
         | realityIsntHere wrote:
         | Percentages can be just as bad.
         | 
         | Increase by 100% is 2x
        
         | lordgrenville wrote:
         | I think for x > 1 "x-fold" is clearer. "Ten times bigger"
         | sounds simpler to me than "1000% growth".
        
           | dasil003 wrote:
           | Yes, for growth. But in this case they are using x > 1 or
           | shrinkage.
        
         | Invictus0 wrote:
         | It's terribly confusing. I made this graph to show why:
         | https://i.imgur.com/7wYWWfs.png
         | 
         | Fold decreases are parabolic, fold increases are linear.
        
           | flavius29663 wrote:
           | so confusing, I always assumed 30 fold was the same as 30x,
           | meaning 30 times smaller.
        
       | kimar wrote:
       | There's a great Reply All podcast about local politics in the
       | town where this plant is to be built. Beware, it's slightly
       | infuriating.
       | 
       | https://gimletmedia.com/shows/reply-all/wbhjwd
        
         | josefdlange wrote:
         | I grew up in Racine County (which contains Mount Pleasant). Let
         | me tell you, SE WI is a strange place. Caught between so many
         | sensibilities and hit so, so hard by economic shifts of the
         | last two decades. I think it suffers, like many places in the
         | American Midwest, the phenomenon of an historically working-
         | class population, who, a few decades ago, would have organized
         | for labor and other rights very vocally and outwardly, but who
         | now are radicalized to the right for no understandable reason.
         | 
         | I still like to believe that most of the people around there
         | are good and mean well, but it gets harder and harder every day
         | to believe the willful ignorance they possess of economic,
         | societal, and cultural issues at hand, here and now, will fade.
         | But there's hope. Younger leaders are working their way into
         | local government (hi Greta!), especially over in the formal
         | City of Racine. There's hope that Racine and Racine County
         | might be a leader of progressive values in the area.
         | 
         | As an aside, I think there's oodles of opportunity in the SE WI
         | area for younger folks. It really is a beautiful place, is near
         | to Chicago and Milwaukee, and is inexpensive. You get all four
         | seasons, for better or worse. I think it's better than SF's
         | summer and grey-chillier-summer. Some joke that the four
         | seasons are winter, construction, construction, and
         | construction, but that's an exaggeration. Anyway, I think an
         | influx of more diverse people in background and ideology could
         | really stimulate an area like SE WI. Add to that making it
         | worth young people staying around instead of fleeing to the
         | coasts, and suddenly Racine can be a really cool place.
         | 
         | This whole Foxconn thing just makes me so sad, and angry.
        
           | justaman wrote:
           | You claim to not understand how that group of people can
           | swing right and then proceed to attribute ignorance to that
           | group of people. This doesn't compute. Very partisan and
           | ignorant of you.
        
             | josefdlange wrote:
             | Hi friend, thanks for your response. I appreciate the
             | criticism and the opportunity to re-evaluate my point. That
             | said, after thinking about it, I don't believe there's a
             | contradiction in what I've written. Point in fact is that I
             | do not understand--in a personal sense of it "computing"
             | (as you put it) to me--the forces at work that push people
             | to be, as I said, wilfully ignorant of real issues facing
             | the area and planet at large. It's not that I don't
             | understand the people at all and simultaneously attribute
             | ignorance to them, it's that how the ignorance comes to be
             | is a mystery to me. An observer can see an effect without
             | knowing the cause. That's usually how we begin to learn
             | anything. There's a comment adjacent to yours that puts
             | words to a gut feeling about it that takes a big step
             | toward understanding, I think. Discourse is great!
        
             | skinnymuch wrote:
             | Why is it partisan? Let's pretend OP said "swing left".
             | Being against the left isn't how partisan is normally
             | defined. It's usually the bias of being for a specific
             | cause/political party. What would be the cause here? Not
             | being pro American politics left? That does not give much
             | info about what causes the person is biased for.
        
           | fatbird wrote:
           | I lived and worked in the area for four years, working in
           | Pleasant Prairie, living in Kenosha and then Oak Creak.
           | Parent is right, it's a strange place because of the mixture
           | of so many influences: the proximity of Chicago and
           | Milwaukee, a former industrial powerhouse region, access to
           | great education but full of people who've never been to
           | Chicago or Milwaukee (let alone further than them).
           | 
           | My sysadmin had a hobby of creating frankenstein cars. He put
           | the powertrain of a Camaro into the body of Gremlin, for
           | which he needed a second Gremlin to lengthen the chassis by a
           | foot. It was so overpowered he needed a couple hundred pounds
           | of sandbags in the back to give it any traction at all. This
           | sort of thing wasn't that weird either.
        
           | munificent wrote:
           | _> for no understandable reason._
           | 
           | Americans classically derive much of their sense of value
           | from:
           | 
           | 1. Work
           | 
           | 2. Race (for many white people, especially historically)
           | 
           | ...and that's about it. Unlike other cultures our "rugged
           | individualism" means that we don't tend to derive as much
           | sense of worth from family, traditions, organizations we
           | belong to, etc. This is especially true for men who are
           | raised to believe that who they are is what they do.
           | 
           | The economic shift to a service- and knowledge-based economy
           | with many manufacturing and ag jobs being automated or
           | outsourced away has devastated 1. in many communities. The
           | march towards better civil rights and equality is chipping
           | away at 2.
           | 
           | This has left a huge number of Americans feeling that they
           | are worth less than they used to be. People like that are
           | ripe for being exploited. People will buy anything if you
           | tell them you're selling dignity. Trump's "Make America Great
           | Again" slogan was really "Make You Feel Like You're Great
           | Again".
        
             | danans wrote:
             | > Unlike other cultures our "rugged individualism" means
             | that we don't tend to derive as much sense of worth from
             | family, traditions, organizations we belong to, etc
             | 
             | I agree with the overall premise, but there is a single
             | notable exception to to this, which is the military, which
             | is the intersection of family, traditions, and government
             | organizations. But even there, as we have seen recently,
             | there is a white nationalism problem afoot.
             | 
             | >Americans classically derive much of their sense of value
             | from:
             | 
             | > 1. Work
             | 
             | > 2. Race (for many white people, especially historically)
             | 
             | > ...
             | 
             | > People will buy anything if you tell them you're selling
             | dignity.
             | 
             | All true, and it's important that politicians who hope to
             | actually heal these folks focus their efforts on restoring
             | the dignity that comes from work and community, and dispel
             | the dangerous sort of "dignity" peddled by ethnic/racial
             | nationalists.
        
               | munificent wrote:
               | _> a single notable exception to to this, which is the
               | military_
               | 
               | This is a bit of cognitive dissonance I find fascinating
               | among the far right. I have had conversations with many
               | people who clearly simultaneously believe:
               | 
               | 1. The government can't do anything right.
               | 
               | 2. We have the world's best military.
               | 
               | And yet for most it hasn't seemed to click that the
               | military is a government program.
               | 
               | But, again, I think this gets to my larger point that
               | because the military is such a source of prestige for
               | many Americans (especially poorer ones with few other
               | upward mobility options), they are able to maintain that
               | bit of cognitive dissonance.
               | 
               | (And, to be clear, I absolutely do not think
               | conservatives have a monopoly on cognitive dissonance. I
               | see many different ones all along the political
               | spectrum.)
        
             | josefdlange wrote:
             | Hard to process this kind of cynicism, accurate though it
             | is. Not your demeanor, by the way, friend, just the reality
             | of it all. Ironic that I speak of willful ignorance and yet
             | am happy to not think too hard about the very things you've
             | called out here.
        
               | munificent wrote:
               | I really don't mean this to sound cynical, though I can
               | see how it comes across. I think it's more about
               | understanding human psychology and trying to use that
               | understanding to empathize with and understand why people
               | behave in seemingly irrational ways.
               | 
               | As a tribal primate species are absolutely hard-wired to
               | seek ways to provide value to our tribe. Being worthless
               | to the tribe means being left in the forest, which was a
               | death sentence to our evolutionary ancestors. So our need
               | for social prestige is as fundamental as food and
               | shelter. Perhaps even more so since for most of our
               | ancestors, food and shelter came from the tribe.
               | 
               | The ways we seek out that esteem are determined by our
               | surrounding culture. If esteem is the game we're trying
               | to win, culture determines the board and the moves we're
               | allowed to make. We can push against culture somewhat and
               | it evolves over time, but we're largely stuck with the
               | one we're enmeshed in.
               | 
               | So you get a set of people who need to feel valued. You
               | raise them in a culture that says the main way to do that
               | is by having a well-paying job. Then you take away the
               | jobs. This is a recipe for unrest and strife.
        
               | josefdlange wrote:
               | Oh definitely -- I'm not detecting cynicism in you and
               | maybe it's the wrong choice of word. I'm more feeling a
               | sense of disappointment in what you're saying being true.
               | It's tragic, in truth.
        
         | pchristensen wrote:
         | More than slightly!
        
       | waterheater wrote:
       | Do not trust Foxconn. I strongly believe they're playing a long-
       | term game here.
       | 
       | For example, the Foxconn plant is on a particular tract of land
       | only partially within the Lake Michigan watershed. Anyone living
       | within the watershed must return their water, and it must be
       | cleaned up first. My understanding of the Great Lakes Compact is
       | that Foxconn's land is one of legal ambiguity, that they may draw
       | from Lake Michigan but not return it. I sure hope it doesn't mean
       | they can bottle up Lake Michigan water and ship it elsewhere, but
       | water is set to be more valuable than oil, so I bet they're
       | playing it strategically.
        
         | ThaDood wrote:
         | Not to be a naysayer, but do you have any sort of evidence to
         | substantiate this claim? Any evidence of exceptions to laws
         | regarding the usage of the watershed and lake with specific
         | regards to Foxconn? Or any kind of indication that a bottling
         | facility will be built up?
        
           | jerry1979 wrote:
           | Not the parent, but there does seem to be a fair amount of
           | legal shenanigans related to the Foxconn and the Great Lakes
           | Compact.
           | 
           | https://www.wiscontext.org/what-foxconn-means-great-lakes-
           | co...
        
           | waterheater wrote:
           | Hard evidence? No. The exact plot of land they chose is not
           | particularly remarkable, so I must wonder why they chose a
           | piece of land straddling the watershed, given that the
           | Compact [1] indirectly applies to corporations.
           | 
           | There's a deeper political aspect to Foxconn's presence that
           | I can't trust. I'm from Wisconsin, and the whole Foxconn deal
           | leaves me feeling extremely uneasy. Leaving aside the
           | Wisconsin and USA politicians associated with the deal, Terry
           | Guo briefly ran for president of the Republic of China. Guo
           | and Foxconn made significant donations to UW-Madison. It
           | smells wrong, and all the Wisconsinites I've talked to agree.
           | 
           | I'm glad their subsidies were slashed.
           | 
           | [1] https://www.gsgp.org/media/1330/great_lakes-
           | st_lawrence_rive...
        
             | KZZ wrote:
             | Also a Wisconsinite here. I've been involved with the deal
             | and haven't noticed any care about any watershed related
             | things. Most of the business they've attracted so far are
             | companies who want contract manufacturing outside of
             | mainland China. The large "screen factory" is still largely
             | empty, and they have no concrete plans for it, but the side
             | projects which piggybacked on to that plan have seen some
             | success.
        
               | waterheater wrote:
               | What projects might those be? Genuinely curious, as I
               | haven't heard any news about them.
        
             | hnworthing wrote:
             | > Terry Guo briefly ran for president of the Republic of
             | China.
             | 
             | I have reservations about Foxconn too, but I'm not sure I
             | understand why this bit is relevant. The Republic of China
             | = Taiwan, a US ally. (Mainland China is the People's
             | Republic of China). This is akin to Bloomberg running for
             | president.
             | 
             | Also it's Terry Gou and not Guo.
        
               | hayst4ck wrote:
               | My understanding is that he ran under KMT, which is the
               | much more China friendly party.
        
             | skinnymuch wrote:
             | Foxconn is Taiwanese. Wouldn't Foxconn affiliated people
             | naturally have involvement with Taiwan? Taiwan is our ally.
             | Forget the Middle East for a second. If China was to take
             | TSMC's factories over. It would be world war 3 most likely.
        
               | hayst4ck wrote:
               | https://en.wikipedia.org/wiki/Foxconn#Mainland_China
               | 
               | https://en.wikipedia.org/wiki/Terry_Gou#Political_career
               | 
               | To say Foxconn is complicated would be an understatement.
        
         | bryanlarsen wrote:
         | > but water is set to be more valuable than oil
         | 
         | Desalination costs less than 0.1 cents per liter, so that sets
         | a pretty firm price cap on the cost of water.
        
           | [deleted]
        
           | kickout wrote:
           | Not arguing at all--- you got a link for those costs? I
           | always thought desalination was cost prohibitive. I'd be
           | thrilled to know it was 0.1 cents per liter (seriously)!
        
             | teachingassist wrote:
             | A web search for 'desalination cost' will easily confirm
             | this for you.
             | 
             | e.g. https://www.sciencedirect.com/science/article/abs/pii/
             | S00119...
             | 
             | "current [published in 2008] large-scale desalination
             | plants are capable of producing water in the range of
             | $0.50-$2.00/m3"
        
             | zbrozek wrote:
             | https://en.wikipedia.org/wiki/Desalination#Costs
        
             | bryanlarsen wrote:
             | I got the numbers from Wikipedia.
             | 
             | 0.1 cents per liter is cost prohibitive for use cases where
             | water is typically measured by the acre-foot.
        
       | altendo wrote:
       | I am always struck at the amount that states and municipalities
       | are willing to write off in order to attract companies. On one
       | hand, I understand that companies want to take the best deal, but
       | on the other hand, at times local governments are willing to give
       | up so much money in tax revenue. I remember reading about the
       | competitions for Google Fiber and Amazon's second HQ - it felt
       | absurd the amount cities and states were willing to drop,
       | financially speaking.
       | 
       | I'm glad this one has been renegotiated (especially seeing that
       | the proposed plant never happened), but I'd like to see these
       | deals be more level-headed before they get to this point.
        
         | grecy wrote:
         | > _local governments are willing to give up so much money in
         | tax revenue_
         | 
         | It's literally a race to the bottom, and for some reason people
         | are eager to win!
        
         | rchaud wrote:
         | > but I'd like to see these deals be more level-headed before
         | they get to this point.
         | 
         | I don't think that's possible considering the incentives at
         | play. Politicians always have the next election in mind, and
         | what better way to try to win it then sign a deal that promises
         | jobs? Doesn't matter if the numbers bandied about are too good
         | to be true --- just get pen to paper and point the finger at
         | your opponent and decry him as anti-business.
        
         | luckylion wrote:
         | They don't have a choice between Amazon HQ or 50 medium sized
         | new businesses, they often have Amazon HQ or nothing new. In
         | that case, whatever they get is more than they have now, isn't
         | it? New jobs that will bring other new businesses and local
         | taxes etc are a bonus.
        
           | wavefunction wrote:
           | Places that were serious contenders for Amazon HQ definitely
           | have other employers and options. There is no way that Amazon
           | HQ is ending up in Sioux Falls or Laramie or something.
        
           | insert_coin wrote:
           | It looks that way in the end, with no other alternative but
           | to yield, but at some point there were many options, that is
           | how the town, city, county or state came to be in the first
           | place. The problem is that they gave so many concessions just
           | to get a short term political advantage, that real productive
           | and sustainable jobs couldn't compete with corruption.
           | 
           | Now because of the giant snowball made from all the little
           | policy mistakes that sounded insignificant at first, or ever
           | worse, sounded sound! I mean who wouldn't want high paying
           | jobs that barely require any training? the only option in
           | many places is to keep the charade, but at some point
           | politics need to give way to real production, and that only
           | means real competition.
        
         | danhak wrote:
         | They're not really "giving up" anything if they attract a
         | business that otherwise wouldn't be there at all.
         | 
         | It's still a net gain to have a major employer in your locale,
         | along with all the other economic benefits and tax revenue that
         | entails.
        
           | avs733 wrote:
           | There should be research to support this argument. Has anyone
           | found evidence for or against? Otherwise the claim here seems
           | aspirational rather than useful.
           | 
           | I know that the history of stadium deals, for example, this
           | claim is nearly universally made to support incentivizing
           | sports teams - and the evidence nearly universally shows it
           | to be false.
           | 
           | "In every case, the conclusions are the same. A new sports
           | facility has an extremely small (perhaps even negative)
           | effect on overall economic activity and employment. No recent
           | facility appears to have earned anything approaching a
           | reasonable return on investment. No recent facility has been
           | self-financing in terms of its impact on net tax revenues.
           | Regardless of whether the unit of analysis is a local
           | neighborhood, a city, or an entire metropolitan area, the
           | economic benefits of sports facilities are de minimus." [0]
           | 
           | [0] https://www.brookings.edu/articles/sports-jobs-taxes-are-
           | new...
        
             | skystarman wrote:
             | I don't think the comparison to sports stadiums fit here.
             | Usually there is already a stadium for a large NFL team or
             | whatever in the city and the economies in the cities that
             | are large enough to even host these teams are WAY more
             | dynamic than where many factories are being built in the
             | south or midwest.
             | 
             | For example Walmart's HQ was built in a TINY SW Arkansas
             | town. The billions that have been invested there by the
             | company, not only in jobs, but amenities in the city have
             | no comparison to any other option that was available to
             | them. If the city and state wanted to hand Walmart a $100
             | million dollar check, then that investment would have paid
             | off way more than 10x. (IDK what subsidies they were given,
             | probably none just using this for sake of the argument)
             | 
             | I know WM is the evil empire and I'm not defending all they
             | do, just saying that if the right business moves into your
             | small community it can be worth tens, hundreds or even many
             | billions of dollars to a community that has no other
             | options.
             | 
             | Amazon moving into NYC, or Atlanta giving many millions in
             | subsidies to the Braves for a new stadium? Not really
             | comparable.
        
               | shadowwolf007 wrote:
               | The "Tiny town" is 70,000 people who live in an multi-
               | city metro area of around 600,000. That may not be like
               | SF or NYC big, but it's also not just a random metro
               | area. Having lived there for a few years, you're painting
               | with a poetic brush a bit and I'd like to clarify how I
               | see it.
               | 
               | Walmart owns Bentonville. The city council, mayor, and
               | basically anyone there is almost completely subservient
               | to their interests. Again - WM never moved in to the
               | small community, the small community literally is Wal-
               | mart.
               | 
               | For many years, people in the town worked in Wal-mart
               | retail buildings & warehouses around Bentonville. Around
               | 2013 the company started to struggle to compete and found
               | that they needed to attract talent, so the Walton Family
               | Foundation started spending somewhere around $300 million
               | - $400 million a year in improvements and restoration
               | projects. This included massive subsidies for companies
               | that moved in to the area - WFF also paid partially or
               | fully relocation money, but I have no idea how much they
               | paid other than one restaurant owner I spoke to who was
               | basically given moving costs, a building, and "free" rent
               | for a year.
               | 
               | The whole "Wal-mart HQ" thing is just another in their
               | line of tactics to attract new talent in to the area
               | because they are struggling to build an ecosystem of
               | talented developers and analysts. Which, again, there's
               | nothing wrong with this tactic if that's what you're
               | hunting for.
               | 
               | One thing I'll give WM for sure - they are 100% focused
               | on building out a tech bubble for people who want a semi-
               | urban lifestyle. There's a lot of TX & CA transplants and
               | honestly it's working great for them.
               | 
               | All told, none of this is even kind of comparable to
               | Amazon moving to NYC or Atlanta. Nor is it comparable to
               | a company moving in to a small town brand-new.
               | 
               | [ed: oops missed an important sentence!]
        
               | skystarman wrote:
               | According to wikipedia the population of Bentonville when
               | the first WM store was built was 2,949.
               | 
               | It's now 54,909, but maybe it's 70k as you say.
               | 
               | Either way it sounds precisely like a situation where a
               | giant corporation moved in to a small town. Or more
               | accurately the tiny store grew into a giant corporation
               | and so did the small town.
               | 
               | My point was merely that many small rural town mayors
               | would love it if a giant corporation would move an HQ
               | with tens of thousands of high paying jobs into their
               | tiny communities! This is why the are willing to give
               | giant incentives to them.
               | 
               | You make great points otherwise, thanks for sharing your
               | perspective!
        
               | cabotmoose wrote:
               | > For example Walmart's HQ was built in a TINY SW
               | Arkansas town.
               | 
               | Minor correction: Walmart's HQ is in _NW_ Arkansas
               | (Bentonville)
        
               | kevin_thibedeau wrote:
               | I'd just like Wal-Mart to honor Walton's rule about no
               | more than two customers waiting in line.
        
           | refurb wrote:
           | Exactly.
           | 
           | People this it's a choice between: A) company moves here pays
           | $0 in tax or B) company moves here and pays $5M in tax.
           | 
           | When in reality it's a choice between: A) company comes here
           | and pays $0 in tax or B) company doesn't come here and net
           | taxes are still $0
        
             | eigen wrote:
             | According to [1], its:
             | 
             | A) company comes here and pays $0 in tax. and city "took on
             | hundreds of millions in debt that was supposed to be repaid
             | by property taxes".
             | 
             | B) company doesn't come here and net taxes are still $0.
             | city doesnt take on more debt.
             | 
             | B looks better.
             | 
             | [1] https://www.theverge.com/21507966/foxconn-empty-
             | factories-wi...
        
             | cma wrote:
             | We have a coordinating union of states though, we don't
             | need states to be pitted against each other to subsidize
             | existing wealthy owners.
        
               | JohnWhigham wrote:
               | Until our limp-dick federal government does something
               | about it (which they won't), the custom will continue.
        
             | acdha wrote:
             | Or, company comes here, pays their employees less than
             | expected, and leaves sooner than expected with the local
             | taxpayers on the hook paying for more infrastructure than
             | they need - and maybe some bonus pollution to deal with for
             | decades.
             | 
             | These deals are always more complicated than the initial
             | marquee numbers and that usually seems to make them less
             | favorable for the area than hoped because companies have
             | greater experience and can play desperate municipalities
             | off against each other with little consequence for not
             | delivering.
        
           | Taylor_OD wrote:
           | It could be a net gain. Dropping a few thousand jobs and a
           | factory into an area changes said area. Sometimes for the
           | better. Sometimes not.
        
             | cycrutchfield wrote:
             | Most communities tend to prefer having lots of jobs
             | available versus having too few jobs available.
        
               | Taylor_OD wrote:
               | Absolutely. But I don't know anyone who likes having the
               | added traffic that thousands of jobs bring. And increased
               | housing prices. And yada yada. More jobs isnt always
               | positive and at the very least have some downsides.
        
           | wavefunction wrote:
           | Roads and infrastructure don't pay for themselves and
           | considering the scale of some incentive packages offered and
           | the paltry outcomes like the one we're discussing in
           | Wisconsin and elsewhere the assertion that there's a "net
           | gain" deserves serious scrutiny and supporting evidence.
        
           | stevehawk wrote:
           | I don't understand why people keep downvoting this sentiment.
           | Cities have two options:
           | 
           | (1) Attract a business that wouldn't otherwise come, which
           | when it exists will attract more people that pay state/local
           | sales taxes and increase demand for property, which in turn
           | increases property price, which increases property taxes.
           | 
           | (2) Don't attract the business. . . .. nothing comes after
           | that.
        
             | evgen wrote:
             | And once again the law of the excluded middle strikes. No,
             | the only two options are not the ones you suggest. The
             | other option, that you conveniently ignore, is that cities
             | build a good infrastructure that attracts talent and the
             | businesses come to either serve the talent or employ the
             | talent -- no subsidy needed.
             | 
             | By now there must be entire libraries, or at least large
             | warehouses, filled with case studies from HBS and similar
             | schools that show state and municipal tax incentives are
             | ALWAYS a bad deal for the city and state finances. The only
             | purpose they serve is to make a politician appear effective
             | and to enable that politician and his or her cronies to
             | collect a bit of graft.
        
           | emodendroket wrote:
           | The New York Times investigated this notion and found most
           | deals were so lopsided that the municipalities and states
           | never came anywhere near recouping their investments.
           | https://www.nytimes.com/2012/12/02/us/how-local-taxpayers-
           | ba...
        
           | 34679 wrote:
           | They're giving up fairness and equality- equal treatment
           | under the law. If the entire state wasn't completely devoid
           | of any entities looking to compete in that space, it probably
           | is now. Anyone making LCD panels in Wisconsin suddenly has a
           | $80,000,000 greater financial gap from their largest
           | competitor. If the lower taxes are good for creating jobs at
           | a net gain to the local economy, then the lower rate should
           | be applied equally among all similarly taxed entities.
        
             | dntrkv wrote:
             | > If the lower taxes are good for creating jobs at net gain
             | to the local economy, then the lower rate should be applied
             | equally among all similarly taxed entities.
             | 
             | I agree with the premise here, but in reality, you can see
             | that won't actually work.
             | 
             | You have existing businesses in an area paying a certain
             | amount in taxes. You want to attract a new major business.
             | If you lower your taxes for all the businesses in hopes of
             | attracting the new business, you just lost a huge chunk of
             | revenue for something that might not come to fruition.
             | Whereas if you don't lower your taxes, that new business
             | has no incentive to go with your locale, and will instead,
             | settle somewhere there is an already established talent-
             | base/infrastructure/etc. Furthering the economic inequality
             | between the regions.
             | 
             | I am not a fan of these tax incentives, but I can't blame
             | these places for using them.
        
               | hobs wrote:
               | There's an old phrase "burning down your house for the
               | nails" - so yes, we can blame these places for using
               | them.
        
               | 34679 wrote:
               | I believe luring in corporate giants with payouts
               | collected from existing businesses is short-sighted and
               | wrong both morally and economically. There are existing
               | businesses in Wisconsin, and the way I see it, their
               | current collective tax burden is excessive to the tune of
               | at least $80,000,000.
               | 
               | The government is essentially running around to all of
               | the Davids, collecting a few dollars from each to fund
               | the construction of a tower that puts the Goliath beyond
               | the reach of David's sling. I don't want a government
               | that builds mountains for the largest companies while
               | relegating small businesses to the trenches. I want a
               | government that does everything possible to keep the
               | battlefield level. Innovation rarely comes from the
               | established giants.
        
         | AzzieElbab wrote:
         | you cant "give up" tax revenue you haven't collected
        
           | nindalf wrote:
           | You're right, but you can contribute to a race-to-the-bottom
           | where no one collects any tax.
        
             | j_walter wrote:
             | You get taxes in other ways through new building permits,
             | higher property taxes, local sales tax, etc...there is more
             | going on than just collecting corporate taxes in a
             | municipality. The more people you draw the better your
             | overall tax revenue is...and the taxes you are willing to
             | put off are limited in time and generally expire after 5-10
             | years.
        
               | jrumbut wrote:
               | This is all true but it just describes why jurisdictions
               | are willing to join the race to the bottom.
        
               | AzzieElbab wrote:
               | But "the bottom" is not really a bottom then. It is like
               | a joint private/public venture. What is wrong with that?
        
               | jrumbut wrote:
               | It's not really a problem for the partners in the joint
               | private/public venture. It is a problem for the next
               | jurisdiction that is now facing companies' expectations
               | of massive incentives, for the existing residents and
               | businesses that are paying normal taxes because they
               | aren't new, for any but the largest businesses who don't
               | have lobbyists on staff, etc.
               | 
               | There's also the general wisdom that life is better when
               | you're competing to offer more value for more money, not
               | just cutting costs as far as you can
        
               | AzzieElbab wrote:
               | I see your point and agree that from the fairness point
               | of view this is not quite right. However, I do not see
               | fairness as relevant in this context. Unless it is
               | Walmart that is getting tax breaks for building a bunch
               | of stores in NYC, local businesses do not oppose big
               | companies getting incentives to move in.
        
               | jrumbut wrote:
               | Perhaps they don't but I'm not as focused on the
               | relationship between the company and jurisdiction, I'm
               | talking about the externalities.
               | 
               | Desperate places give away the store to get anything at
               | all, and it depresses what companies are willing to offer
               | the next place while also tilting the playing field
               | toward big companies with the ability to negotiate these
               | kind of deals.
        
         | r00fus wrote:
         | Let's just call it what is is: corruption. Corruption isn't
         | just something that happens in 3rd world countries. Alive and
         | well in the US of A.
        
           | data_spy wrote:
           | In this case, it was actually a Governor who didn't know math
           | more so than corruption. At least for the original terms in
           | 2017.
        
             | r00fus wrote:
             | Do you actually believe that? Gov. Walker was notorious for
             | various other corrupt activities as well.
             | 
             | In other terms, grey's law applies here: _Any sufficiently
             | advanced incompetence is indistinguishable from malice_
        
               | imtringued wrote:
               | It would be corruption if he personally benefits from the
               | project, e.g. by selling land to Foxconn. I don't know
               | the specific details to know if it really was a case of
               | corruption.
        
               | r00fus wrote:
               | A load of bitcoin in a hidden wallet? Not that visible.
               | Easy to disguise.
               | 
               | The payoff could be very hard to find, but the
               | malfeasance in public office is clear as day.
        
           | imtringued wrote:
           | It's corporate welfare.
        
         | fnord77 wrote:
         | it's a pretty low risk gamble for the politicians and there's
         | almost always a reward for them even if the deal falls through.
        
           | vmchale wrote:
           | In this case because Scott Walker lost re-election.
        
         | specialist wrote:
         | Close the deal, claim credit, move on before the inevitable
         | consequences.
         | 
         | Just like a sales driven tech company. Heroes for booking
         | sales. Score fat commission. Loser developers and clients are
         | left holding the bag.
        
         | tppiotrowski wrote:
         | I think it's a zero-sum game. Only one of your competitors has
         | to offer a concession to win the business so you have to
         | compete.
        
       | neartheplain wrote:
       | The massive downward revision of this deal, and of Foxconn's
       | commitment to create jobs in Wisconsin, is hardly a surprise.
       | Foxconn has a history of reneging on promises to build factories,
       | as was widely reported when this deal was first made in 2017:
       | 
       | https://www.marketwatch.com/story/foxconns-history-of-broken...
       | 
       | https://boingboing.net/2017/08/09/potemkin-factories.html
       | 
       | https://urbanmilwaukee.com/2017/08/20/op-ed-the-many-broken-...
        
         | KingOfCoders wrote:
         | It helped Trump, mission accomplished.
        
           | rectang wrote:
           | The political aspect is central to the Wisconsin/Foxconn
           | story, but by naming "Trump", or "Republicans", or a certain
           | Wisconsin governor explicitly it guarantees that the
           | discussion descends into a partisan flamewar.
           | 
           | Consider instead something along the lines of "it achieved
           | the desired political benefit for certain politicians". By
           | keeping it abstract, even if it can be deduced who you're
           | referring to, the discussion can remain less adversarial.
        
           | efficax wrote:
           | The wide reporting of the fallout from this move, especially
           | of foxconn's demolishing of homes
           | https://madison.com/ct/news/local/govt-and-
           | politics/owners-n...
           | 
           | was probably impactful on Wisconsonian's move away from Trump
           | in both the midterms and in 2020. I don't know of any polling
           | that connects the two but the foxconn disaster was a frequent
           | topic of conversation here.
        
           | billyhoffman wrote:
           | Did it? His "8th wonder of the world nonsense" was after he
           | was elected in 2017, and Trump then lost Wisconsin in 2020
        
             | api wrote:
             | Exactly. People like Trump have careers that resemble
             | repeatedly pumped-and-dumped penny stocks. They rise and
             | fall, rise and fall, rise and fall.
             | 
             | Basically what they do is build themselves up through
             | something like a social capital pyramid scheme. This
             | eventually collapses when there are no greater fools and
             | when all their promises fail, but the good ones already
             | have the next grift in progress before the first one
             | collapses.
             | 
             | Trump is truly one of the greats at this. Not only does he
             | do this very well but he builds the next grift off the
             | previous one. He's IMHO the world's premier expert in
             | "failing up."
        
               | silexia wrote:
               | Brilliant comment, I think we are going to see this in
               | the future too with Trump. He has gone quiet for now, but
               | he's going to come back and make far more money than he
               | was making prior to the presidency.
        
               | Solocomplex wrote:
               | And during! Which was, of course, illegal.
        
               | katbyte wrote:
               | Provided none of the court cases he is currently involved
               | in send him to jail or bankrupt him?
        
               | anonAndOn wrote:
               | > bankrupt him
               | 
               | ...for the 7th time?
        
               | UncleOxidant wrote:
               | I'm not going to hold my breath waiting for him to be
               | imprisoned. But I do think he's going to be spending a
               | lot of time in courtrooms for the rest of his life and
               | that's at least some consolation.
        
               | jacobolus wrote:
               | Trump is a true grifter prodigy, who has managed to
               | "fail" hundreds of times - while skimming billions of
               | dollars away from investors, business partners, lenders,
               | suppliers, employees, and customers - often in full
               | public view, and both skate away from criminal liability
               | and still keep finding more marks, ultimately including
               | something like 40% of the general public.
        
               | mbg721 wrote:
               | That may be true, but the last piece is genuinely
               | different. If he was a fraud as a candidate, then he was
               | a fraud in a situation where there was no legitimate
               | substitute. Few voters have changed their minds; the
               | aftermath of 2020 has been a digging-in of heels in a
               | culture-war, not a "We've been had!" moment.
        
               | matwood wrote:
               | Not sure why you're downvoted because this is what Trump
               | has done through most of his life. While POTUS, his
               | healthcare plan was 2 weeks away, his infrastructure plan
               | was 2 weeks away, the wall - I guess a few feet were
               | built.
               | 
               | Great at marketing, terrible at execution.
        
               | JustSomeNobody wrote:
               | I am sure down votes are because he still has supporters
               | here on HN. But even still, there's nothing that's been
               | said that wasn't true.
        
               | UncleOxidant wrote:
               | > he still has supporters here on HN.
               | 
               | Which I always find a bit surprising because you'd think
               | people here would be able to see through the hucksterism.
        
               | api wrote:
               | I have a speculation that some fraction of the tech-
               | libertarian crowd likes him precisely _because_ he was a
               | dumpster fire. He helps discredit the state. Keep
               | electing candidates of that quality and seasteading
               | schemes start looking attractive.
        
               | mbg721 wrote:
               | Trump's appeal is precisely that he's the worst candidate
               | apart from all the others, and the opposition keeps
               | proving his point. Plenty of people would have preferred
               | a non-dumpster-fire conservative, but didn't get to pick.
               | Meanwhile, Biden was nominated purely to be an easy
               | mouthpiece for the DNC, (certainly not on his record for
               | race and crime issues,) but had every corporate and media
               | voice possible behind him.
        
             | KingOfCoders wrote:
             | Trumps brand is still strong it seems (or at least
             | Republicans think so) and it added to his brand - I do
             | think the most important thing to Trump is branding, being
             | president is secondary. Or the other way around: Being
             | president added to the brand, that's what Trump was
             | interested in* He doesn't care he lost the presidency in
             | principle, but because losing tarnishes the brand. He would
             | be the same losing the presidency of a golf club.
             | 
             | *And perhaps getting immunity.
        
               | NicoJuicy wrote:
               | Trump's brand was name licensing.
               | 
               | You won't license a brand that already scrunes >50% of
               | potential customers in the US is and way more in the
               | western world ( but the contacts seem to be solid, so
               | it's very expensive)
               | 
               | Look at all the hotels trying to get off the Trump brand.
               | And all the businesses that associated themselves with
               | Trump during his presidency.
        
               | apercu wrote:
               | "Trumps brand is still strong it seems (or at least
               | Republicans think so)"
               | 
               | Jeez. In all of my marketing efforts I would never
               | immediately out of the gate alienate 60-65% of my
               | potential customer base. And the Trump brand did nearly
               | that from day 1.
        
               | UncleOxidant wrote:
               | Sure, but he's got an extremely loyal 40%. Of course,
               | most of that demographic aren't the folks that can afford
               | a night in a Trump hotel or to buy a membership at one of
               | his golf clubs.
        
             | altacc wrote:
             | You probably need to consider the wider impact, not just
             | Wisconsin. This was national news (I'm international and I
             | remember reading about it) and would have contributed to
             | his supporters general perception that he was delivering on
             | promises. This isn't really an area where we can single
             | Trump out as he was just being a normal politician here.
             | It's common to announce an amazing deal with a big fanfare
             | which then either fails to materialise, is in fact not as
             | amazing as the headlines claim it to be, or includes
             | previously agreed policies or agreements that are claimed
             | once again as new. This is just typical PR (unfortunately).
        
               | blueblob wrote:
               | It's either a lot less common than you're making it out
               | to be or it should not have made international news.
               | Anyone who followed this story from the beginning
               | realized it was not a good deal for Wisconsinites.
        
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