TwinIon Posted October 29, 2018 Share Posted October 29, 2018 The Verge has a nice story on this incredibly shocking development. Quote Realistically, the payback period for a $100,000 per job deal is not 20 years, not 42 years, but somewhere between hundreds of years and never,” wrote Jeffrey Dorfman, an economics professor at the University of Georgia, in a story for Forbes. “At $230,000 [or more] per job, there is no hope of recapturing the state funds spent.” And this was before the subsidy had risen to $4.1 billion, or about $315,000 per job. But wait, there's more! It's a horrible deal as promised, but even with all that taxpayer money being thrown at them, Foxconn doesn't seem like they'll hold up their end of the deal. Foxconn wanted Corning to build a glass factory nearby so that Foxconn could build LCDs for 75" TVs (which you can't ship very far), but Corning wanted a huge subsidy (for 2/3s the cost of the plant). When that didn't happen, Foxconn decided to make much smaller panels, which requires a smaller plant. The reduced plant will probably only require a $2.5B investment, rather than the $10B they first promised. And even that might not last. Foxconn is now saying they want to work on "AI 8k+5G." It's anyone's guess what that combination of buzzwords means, but what they have said is that it'll probably involve a much more automated, robotic workforce, eliminating most of the blue collar jobs. Some of the subsidies get paid out when Foxconn makes investments and creates jobs, but they collect at least $1B in subsidies regardless of how many jobs they create. As a bonus, Scott Walker also gave Foxconn a free pass to destroy the environment, so as you might imagine, there are a few red flags popping up, even without an actual plant existing yet. If only anyone could have foreseen such an outcome. 1 Quote Link to comment Share on other sites More sharing options...
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.