“President Donald Trump on Thursday said his demands for ‘fair and reciprocal trade’ are a response to past policies that have allowed other countries to take advantage of the United States,” Lauren Zumbach reports for The Chicago Tribune. “Trump spoke after turning over dirt at a groundbreaking ceremony for Foxconn Technology Group’s planned $10 billion manufacturing complex in the southeastern Wisconsin town of Mount Pleasant.”
“While Trump praised the Taiwanese electronics giant’s plans for a factory that will produce liquid crystal displays as ‘the eighth wonder of the world,’ he had less-kind words for another manufacturer, located just 25 miles north: Harley-Davidson. Earlier this week, the Milwaukee-based motorcycle-maker said it plans to shift some production overseas, a decision it attributed to the consequences of the president’s trade policies,” Zumbach reports. “‘Please build those beautiful motorcycles here in the USA again. Don’t get cute with us,’ Trump said, warning, ‘Your customers won’t be happy if you don’t.'”
“Trump pointed to Foxconn as an example of the ‘exciting manufacturing story playing out across the country.’ Wisconsin Gov. Scott Walker, meanwhile, touted its potential to make Wisconsin a ‘brain gain state, not a brain drain state,'” Zumbach reports. “Foxconn founder and Chairman Terry Gou issued a warning of his own to America’s traditional tech centers. ‘To Silicon Valley, to Boston, ‘Wisconn Valley’ is coming,’ Gou said.”
“The groundbreaking ceremony came about 11 months after Trump and Gou announced plans for a LCD panel manufacturing facility in southern Wisconsin in an event at the White House,” Zumbach reports. “Backers see the Foxconn project as a can’t-miss opportunity to transform the region’s economy and build an advanced manufacturing hub around the 22 million-square-foot campus. The plant could eventually employ 13,000 workers, some of whom will likely cross the state line from northern Illinois.”
Read more in the full article here.
MacDailyNews Take: Hey, make a bunch of those new, forthcoming Apple pro displays there, too!
SEE ALSO:
President Trump announces Apple supplier Foxconn’s $10 billion investment in Wisconsin and up to 13,000 jobs – July 27, 2017
President Trump to announce Apple-supplier Foxconn manufacturing plant in Wisconsin today at 5pm EDT – July 26, 2017
Apple supplier Foxconn nearing decision to build plant in Wisconsin to produce display panels – July 25, 2017
Made in America iPhones, after all? Apple supplier Foxconn considering iPhone plant in Wisconsin – June 15, 2017
China Premier Li visits Apple supplier Foxconn after CEO’s meeting with President Trump – May 10, 2017
Apple’s top manufacturing partner to meet with U.S. President Trump today – April 27, 2017
Apple could help Westinghouse in completing new nuclear plants – April 17, 2017
Apple may bid for big stake in Toshiba – April 17, 2017
Apple supplier Sharp may begin building $7 billion U.S. plant in within months as Japan PM meets President Trump – February 8, 2017
Foxconn-Sharp considering LCD plant in USA, plans in response to President-elect Trump’s ‘Make in America’ call – January 13, 2017
With President Trump soon to take office, Apple looks to boost its ‘Made in America’ credentials – January 10, 2017
Make America Insanely Great Again: Apple seeks to expand Made in USA manufacturing – January 9, 2017
Apple invests $1 billion in SoftBank’s massive tech fund; may help company get in President Trump’s good graces – January 4, 2017
Apple in talks to invest $1 billion in SoftBank tech fund – December 13, 2016
Softbank to invest $50 billion in the U.S., create 50,000 new tech jobs after meeting with President-elect Trump – and Apple supplier Foxconn is in on the deal – December 6, 2016
President-elect Trump invites tech leaders to roundtable in Manhattan next week – December 6, 2016
President-elect Trump tells Apple CEO Tim Cook that he’d like to see Apple make products in the U.S. – November 23, 2016
President-elect Trump says Apple CEO Tim Cook called him after election victory – November 22, 2016
Apple could make iPhones in the U.S.A. under President Trump, sources say – November 17, 2016
Japan’s Softbank just became one of Apple’s most important suppliers – July 18, 2016
MAGA! 🇺🇸👍🏻
Running Harley out of America is a prime example of the idiocy of the Trump mis-administration.
They ran themselves out. The bikes are outrageously priced (Harley Tax) and the boomers are going into nursing homes while the younger generations don’t want to own anything and are not buying. Besides, Foxconnn made up for it and then some …
Harley like nearly all other manufacturers are/have considered building abroad in particular India for years, even BMW are now doing so. Only problem for Harley is that they survived on their heritage and thus buyers rather expect them to be made in the US. However I do have to smile when A Chinese/Taiwanese company builds in the US its wonderful blah, blah, blah but when and American manufacturer wants to build abroad especially to tap markets there there is this ‘traitor’ accusation. I do love the stench of hypocrisy in the morning.
Is it hypocrisy?
Or is it more of the previous 4 administrations and associated congresses have been actually passing laws and regulations pushing manufacturing and development out of the U.S..
This ‘A$$’ gets elected, reverses previous executive orders and uses the powers of the office to unburden development, threatens trade wars, and suddenly there is renewed interest both domestically and from foreign operations to create jobs in America. Unrelated, there is a British steel firm that is opening a shuttered steel plant in South Carolina that closed almost 4 years ago.
So yeah, for a truly American company to say they are ‘moving’ manufacturing to a different country, they deserve the accusations. Big difference between ‘shifting production’ to a different country and expanding into another country.
All good points and we are seeing amazing results in a record amount of time.
It does NOT take a village, it takes a businessman…
You cannot deny the economic reality that it is more efficient to accomplish final assembly operations closer to the end customers. China and India are growing quickly, and Trump’s promises for US growth are dreams at best. Especially when you curtail immigration so population growth falls to near 0% and you block trade with petty tit for tat duties which help no one.
What results goeb? In matters of the state, it takes months if not years or decades for economic policy to play out. The punitive tariffs haven’t hit you between the eyes yet, but it’s coming. You can tell us then why you didn’t believe the economists who pointed out the bazillion errors in Trump logic.
“You can tell us then why you didn’t believe the economists”
Are these the same swamp economists that told us under Obama jobs are gone and not coming back, Americans accept a lower standard of living, GDP growth could not reach 3%, unemployment will remain high, wages will not grow and tax cuts will not work?
Talk about being hit between the eyes …
GoeB…frighteningly stupid, hypocritical and callous – all rolled into one post.
So, vague promises of future jobs at Foxconn to produce OLD AND SOON TO BE OBSOLETE technology are MAGA, whereas helping one of America’s established iconic companies who are doing exactly the same thing as Foxconn (only without the state subsidies) ie protect their foreign sales by investing in those markets – is a betrayal of American ideals? Not to mention your zero concerns for Harley-Davidson, it’s future and all the workers and other companies invested in
them who now face a disastrous business contraction with the concomitant loss of jobs, prospects and livelihood? #sympathy_desert much?
The bizarre spectacle of GoeB mindlessly toadying for Trump’s mania for trashing an iconic brand that made America great in the first place??? You can’t make this stuff up.
A double whammy callous sandwich if there ever was one.
“GoeB…frighteningly stupid, hypocritical and callous – all rolled into one post.”
The moment a post starts out with personal attacks— I STOP reading. And thanks, you always say the nicest things about me… 🖕
If the cap fits…so be it. But, if your logical grammar deconstruction was more refined, you would know that I attacked your ‘post’ and it’s content…not you.
Still, it’s nice to know that you take everything personally like an injured snowflake replete with fake self esteem.
You attacked my “post”? I was born at night, but it wasn’t last night …
GoeB is a tool. No doubt. And his thought processes are controlled by the GOP machine. Every GOP talking point has been deeply embedded in his brain through endless repetition. And GoeB has also been conditioned to ignore logical and factual flaws when it comes to the GOP viewpoint.
I have to admit, however, that I have to give credit to the GOP for the effectiveness of their sustained FUD and label & disparage campaigns over the past few decades. In addition to its aging white base, the GOP has managed to convince a fair number poor and working class Americans, particularly those in rural areas, that the GOP really cares about them and that their policies will improve their lives. Indeed, many of these people have been convinced that the U.S. will crumble into oblivion without strict adherence to the GOP dogma. That is an impressive feat of mass misinformation, and I have to give credit where credit is due.
It would not have succeeded, however, were it not for Democratic complacency and the party’s failure to engage and communicate with working-class Americans. The DNC allowed, even enabled, this Trump aberration to occur. Vigilance is needed to ensure that this mistake is not repeated for a long, long time.
“GoeB is a tool. No doubt.”
That’s really funny coming from you Melvin, as you are a “tool” for the Democratic Party, particularly obvious in the last paragraph.
You’re also a hypocrite for recommending Dems adopt the same tactics, what, only good for your side if it works?
Also noted your TYPICAL snide elitist stereotyping (UGLY) of rural people and the president’s supporters. How did the “deplorables” comment work out for Hillary?
I also noticed in your post no disagreement with the President‘s policies and no credit for the economy. That’s to be expected from your side of the aisle.
Just a long winded OPINION diatribe on denigrating me and so many other Americans, pity … 🇺🇸
Goeb, your broad brush is showing again.
Condolences to the taxpayers of Wisconsin who will be shouldering the burden of this corporate welfare for decades.
FACT: Trump lied in his propagandist speech about both costs and employment. But it won’t matter. His loyal followers will just … SQUIRREL!!!!!
Trump plan: Lie, distract, let moneyed corrupt influencers take the cake, new lie, new distraction, repeat daily. At some point the lies are going to catch up with him.
“Trump plan: Lie, distract, let moneyed corrupt influencers take the cake, new lie, new distraction, repeat daily.“
Hey, you want to talk broad brush? Name ONE influencer that take the cake.
Yes, in his daily USA cheerleading for the greater good certainly sometimes the facts are exaggerated and sometimes false. But my gut tells me I don’t think he intentionally lies or is out to deceive anyone, you’re thinking of the two master liars named Clinton. He has good intentions, a good heart, stunning beautiful family and he wants to be liked and successful (which he is).
What he has done as a first time politician is an absolutely remarkable job with the economy — creating jobs, record unemployment rate for Blacks and Hispanics, decades low unemployment rate and lower taxes, consumer confidence to name a few.
That’s all most people and myself care about. I don’t care about the semantic scintilla sniping from the detractor sidelines.
MAGA! 🇺🇸👍🏻
$10 billion is not trivial. This is a good deal for Wisconsin.
The Wisconsin budget office estimates that the state and local subsidies will be repaid circa 2042.
Nothing positive from you ever about the economy or Republicans. Just your typical peeing on the parade again, SAD …
TxUser is right, but only partially so. The state and local authorities will recoup their offsets to Foxconn by 2042 — but only if Foxconn builds out and staffs the entire facility to the maximum envisioned.
There is nothing in the agreement between Foxconn and the state and local authorities that *requires* Foxconn to build out the maximum amount and hire the maximum amount of personnel. This is just a simple fact of the agreements. If Foxconn does not maximize everything then the state and local authorities may never recoup their “investments” to get Foxconn to put a plant there. Again, a simple fact.
I hope Foxconn does the complete build out and hires the maximum number of staff. It will be great for the area. It will be transformative for the area.
However, the history of these types of deals goes back many decades and all too often the state and local authorities (and by extension the local population) gets screwed. Just think about those 13,000 workers. Foxconn is already slowly replacing workers in its non U.S. plants with robotic systems — and those are in areas where the labor rates are much lower than they will be in Wisconsin.
Go into this with your eyes open and your hand covering your wallet. Be hopeful, but being giddy over this is unwise.
More likely that local authorities and state authorities have extracted from Foxcon donations to their next election campaign while, yes, “the local population gets screwed” via higher taxes, cleanup costs, infrastructure upgrades for Foxconn, and possibly higher taxes to offset the giveaways to the corporation. Let’s keep in mind the lower, anti-union wages for real people.
Anything liberal hypocrites did not do or sugget is shit! Capish you all ?
Once and for all ; its not what was done.. its who did it.
Hey they would even have a problem with cure for cancer if it did not stem from them !
They would be ranting garbage like: hold-off the giddiness… not so easy.. this will have an adverse effect on society and overpopulation and global warming …. bla bla.
Pure crap from A to Z
That’s hypocrite libs for You !
Would you like your rattle back?
Yeah. You have a trade surplus with Canada yet Trump lies and says the opposite. He even ADMITTED he lied! Now he imposes tariffs against us and uses the excuse that we are a national security threat!!! Canada? Really? Then insults our PM calling him childish names and weak?
If that is what MAGA means, then fine. Hope your conscious can live with that, if you even have one.
Never said he was perfect and certainly there are some rough edges for someone getting it done …
Says someone who has gone out of his way to attack people who point out Trump’s repeated lies and broken promises. With the exception of First Whatever and a handful of factually and logically challenged short term thinking politicos, you are the only person in the room who can’t see through the Trump smokescreen. The idiot is a distraction the swamp creatures (Mercers) are using to undermine democracy and slant regulation in their favor. Why else would any executive have a rotating door cabinet with the least qualified people in generations, none of whom the president actually listens to? Do you not believe in competent administration? Tweets and golf and political rallies full of obvious lies don’t get shit done.
“Says someone who has gone out of his way to attack people who point out Trump’s repeated lies and broken promises.”
See my response to your earlier post.
“you are the only person in the room who can’t see through the Trump smokescreen.”
I see just fine, Mike. I repeat —see my response to your earlier post.
The “rotating door cabinet” is indeed the strangest I have ever seen and as a detractor I get your point. But as a supporter suggest you think this through. Odd mix of swamp lifelong political insiders, brash businessmen, conservative journalists and commentators — many have ZERO political experience in Washington, AKA TRUMP. When you have no political experience, you simply learn as you go and move forward.
That said, this past week was a major turning point for the president finally gaining his footing. Let’s not forget his stature on the world stage, either.
In 1.5 years he has visited China, canceled the Pacific trade agreement, pulled out of the money pit Paris (feel good) Climate Accord, canceled the billion bribe Iran deal, destroying ISIS, accomplished what four(?) presidents before him failed by moving the Embassy in Israel, FIRST president to visit the wall, negotiated with NATO and the EU, a rock star at the Davos summit, an unprecedented HISTORIC meeting with North Korea and now a summit with Putin later this month!
How did you miss all that, Mike? Partisan neglect does not make you smarter. Been a long time since I have read a post here loudly saying the world is laughing” at the United States, right.
The facts are out there and just because the 94% biased negative media coverage of the Trump presidency, ALL time high, does not tell you, does NOT change the truth.
Lastly, do not confuse or conflate “attack” with healthy disagreement …
It was one of his finest moments were he made it crystal clear to all who can see and hear by saying those now famous words that will echo through history forever.
“Because we’re so stupid”
Donald Trump
As a rule, I’m opposed to incentives and tax breaks.
I just looked at Wisconsin’s analysis, and I noticed there’s no inflation adjustment in the projections.
Two, the breakeven is so far out because the tax credits are spread out over time until 2033. So, after tax credits stop, the breakeven is about 9yrs after.
Three, the estimates are based upon max employment figures; obviously, if the employment figures are lower, then the tax credits are also lower, etc. The kicker is that the capital expenditure credit then becomes a greater factor of the two, and would push out breakeven further into the future. Though, that also assumes those jobs would be replaced by automation; otherwise, one might assume the capital expenditure would also be less for a smaller facility to house fewer jobs.
Lastly, these analyses are typically far off the mark, because so much can happen that isn’t modeled or the assumptions are off. Good luck to Wisconsin. The naysayers will make it sound like a bad deal, but I think it’s more typical; not great, not bad. Let’s hope Foxconn is successful, and they act as a magnet for other high-tech firms to build in Wisconsin, mitigating the cost, somewhat.
So, if there were no Foxconn there, what would be the difference?
What would they lose is my point.
If they weren’t there, Wisconsin wouldn’t have invested $4B in a $10B plant owned by a foreign corporation. I used to work in local government and have seen a lot of incentive packages, but nothing so speculative.
Was everybody wearing red hats with the logo, “Make Taiwan Great Again?”
Ands that 4 billion is mainly cash…?
Infrastructure?
Tax credits that wouldn’t be gained anyhow if Foxconn never built there…?????
Didn’t these same people say the same things about the Apple Maiden, NC Data Center? and the local government just announced like a major surplus in funds?
It’s like this one tax Deal went south, so they shouldn’t ever try again. never looking at the deals where it actually benefited the communities.
Also, the naysayers never seem to include the influx of revenue from the actual construction. All the workers, contractors and subcontractors and supply companies that are actually building the facilities, all have revenue that is taxable, and those same people have to eat etc. somewhere so those businesses have additional income as well as do the people who work there. It may be temporary for the years it takes to build and finish the construction, but it offsets some of the tax breaks the business is getting.. and as you pointed out, there was no revenue at all (or minimal property tax) and now there is revenue and long term potential, where there was none before.
Then you have to look at the competition aspect. if the company is looking to build, it didn’t have to be there, there’s always another state and locality that will be willing to help them out, the business could go there. Maybe the naysayers are just upset that it wasn’t in their state?
Just look at the new Apple and Amazon campuses and how long the list was for states and localities wanting them to come there?
The Apple data center added hundreds of millions of dollars to the local tax rolls with hardly any call on local resources to support it. It has its own security and fire suppression systems and has so few employees that it doesn’t generate traffic jams or water shortages.
The FoxConn plant will generate very little revenue in the early years when the incentives are in full effect, but will bring tens of thousands of additional residents to the community who will expect pubic services. Not the same thing.
That is not to say that this might not be a good gamble. It is to say that it IS a gamble.
Exactly right …
#MAGA
Minnesota Apple Growers Association?
You mean WAGA!
Estimates range as high as 13,000 new employees when the plant is fully operational. Incentives granted by Wisconsin seem adequately hedged.
Only a churl could cavil. 😀
Let’s step away from the starry eyed sound bites and get real. Its estimated that the Foxconn factory will cost Wisconsin taxpayers about $230,000 per job created IF, and that is big IF, there are 13,000 jobs created. Foxconn has only committed to 3000 jobs and has a history of automating their plants as much as possible. The State of Wisconsin, on the other hand, committed to massive tax breaks and sales tax relief that we Wisconsin tax payers will have to make up. The reality behind the political statements is that our Governor got played by a smart business man and who swallowed the Magic Mushroom promises to push the tax consequences down the road for the PR sound bites of bringing new jobs. We Wisconsin taxpayers will likely be stuck with the massive bill for this. BTW. since Foxconn is building near the Illinois/Wisconsin border, we expect a lot of jobs going to Illinois commuters who will not be living or paying taxes in Wisconsin.
At the same time, a true iconic Wisconsin company, Harley Davidson, is looking at $100 million in lost sales due to retaliatory European tariffs and is moving jobs to Thailand.
At the same time Trump is criticizing this move but I don’t hear him giving any suggestions of how Harley can compete or even stay in business with these kinds of losses. How does this make sense?
The political BS machine is in overdrive here but the reality is quite different.
Well, the State’s analysis comes out to $226k/job, over 15yrs of the tax credits, so actually only about $15k/job/year, offset by $115M in increased income taxes from those workers. Breakeven is calculated 9yrs after tax credits to Foxconn ceases.
Net costs to the State, according to the analysis, is essentially over a 7 yr period from 2019 to 2026. Outside of that period, the tax credits are cancelled out by increased income taxes, and eventually a Net Benefit in 2033, reaching breakeven by 2041.
The “reality” is that this isn’t the best deal, nor is it the worst deal.
As for jobs, the analysis estimates 10% going to Illinois commuters.
As for Harley, their announcement came so fast upon the heels of these potential steel tariffs, that one can only assume, they have been on the drawing boards for a while. It makes eminent sense to mitigate one’s risk by building where the sales take place. That’s why Apple’s OEM Foxconn should build more in the US, and also why Harley should build more overseas. As the US is a huge consumer of global goods, that should ultimately mean more production in the US.
I hadn’t thought about the income tax angle (because we don’t have an income tax in Texas). In a state like Wisconsin with a state income tax, the incentives granted to the employer can be recouped in part from the additional taxes paid by the employees. That makes a deal like this a lot more attractive, I would imagine (without running the figures). That is, attractive to the employer and governmental entities, if not the employees who are, in effect, financing the deal with their personal income taxes.
In a state like Texas where local government is mostly financed by real estate taxes, this deal wouldn’t work because the average tax on a single-family residence is somewhat lower than the average cost of providing government services to that property and its residents. The difference is made up by the fact that commercial parcels typically generate a surplus of revenue over services. That puts a limit on how generous tax incentives can be. If the incentives are high enough to eat up the commercial tax surplus, the local entity may find it hard to maintain services to its residents.
Adding 13,000 new jobs to a community is not an unalloyed blessing. Those workers bring their families and generate secondary employment that brings still more new residents. All those families need to live someplace, which puts inflationary pressure on local housing costs (and, to a lesser extent, on other local commodities). Those added costs are not just paid by the new residents, but by the longer-term citizens—whose income may not keep up with the cost of living. Again, the math may work differently in a state with an individual income tax.
The new residents require additional traffic lanes, utilities, police, and other services, the total cost of which is higher than the additional tax collections. In a normal growth situation, the tax base of commercial properties may grow fast enough to offset the costs of residential growth. That can’t happen if the tax incentives are too generous. The alternatives are to raise the tax rate or cut services.
Incentives can benefit a community enormously, but they do have very real risks. A deal that involves $4B with a 25-year payback seems very risky, particularly when the beneficiary is a corporation with foreign management and shareholders.
“Only a churl could cavil.”
The smartest five word put down I have ever read …
It is not smart, it is illogical and snarky.
Witty repartee would be welcome but this is just fancy words wrapping a passive aggressive personal attack. You lose my respect instantly if you can’t discuss ideas without personal insults.
The “fancy words” are indeed, very “smart” and I stand by my post. The “put down” does not negate that FACT. Agree with the rest of your post …
MacObserver – don’t bother correcting Goeb. He just wants to argue. He actually believes that ONLY a churl could cavil, despite the abundant evidence that others cavil as well. Then he doubles down on his stupidity by declaring an opinion to be a fact. Typical. Give him another moment and he’ll be calling you fake, or labeling some other superficialities in order to justify his incivility toward anyone who points out his lack of logic.
To the article: isn’t it amazing how no small business in America can ever get 40% of their investments paid for by taxpayers, but Trump seems proud to let Wisconsinites to shoulder the burden for foreign corporate welfare.
How many jobs are actually guaranteed, and at what salary?
“He actually believes that ONLY a churl could cavil, despite the abundant evidence that others cavil as well.“
Mike, don’t put words in my mouth. I never said that and you have no idea WHAT I THINK! Got it? …
And at the same time Apple invests to Taiwan through the TSMC 28 Billion dollars. Get this to your head: Apple is global company and it invests lots of money all over the world (India is huge atm). 10 Billion is nice, but it just is one piece of a puzzle and absolutely has nothing to do with the orange doofus. These investments are made without him.
the president and his policies played a huge role calling him names changes nothing
The orange doofus did nothing. It was the state of the Wisconsin and others. The Orange House just tries to take the credit for this.
The CEO of Foxconn was in Trump Tower early in the presidency when Trump announced at a press conference they would invest billions in building plants in the U.S. Guess you forgot that part.
Regarding settling on Wisconsin and whether the president was involved in the negotiations directly or indirectly behind the scenes, one thing is certain. You don’t know and I don’t know.
Trump’s world business success and cheerleading for the U.S. plays an indirect role as well by instilling confidence. This did not happen under eight years of the last president when economic malaise reigned.
Prove your point, contrarian. When did federal government officials make this happen? I thought we wanted government out of our lives? Amazing how a guy who has a lifetime history of taking credit for things he didn’t do, and blaming others for his own failures, still retains any trustworthiness among people who claim to be conservatives. Most of us can identify a carnival barker when we see them.
If FoxConn can get Wisconsin to go $10 billion in the red, why does anyone think they are going to pay contractors for the construction of the factory?
Why not just subsidize Harley and we can get affordable hogs for all Americans!