More questions than answers on Foxconn

They call the deal “transformational.” Let’s hope that turns out to be true, in a good way. The state of Wisconsin has gone all in on Foxconn, passing a bill promising nearly $3 billion in subsidies to the Taiwan manufacturer. It could bring a $10 billion investment by Foxconn, and could lead to the hiring of some 13,000 workers. But despite lawmakers eagerness to ink the deal, there are still more questions than answers. First, Foxconn has a history of broken promises. Just ask Pennsylvania, or Brazil. The company has not even selected a site for the plant. A shovel in the ground would make us feel a bit more confident. It is not clear where the workers would come from given our low unemployment rate. And even if everything works out as planned, taxpayers won’t see a return on their investment until at least 2042. Wisconsin lawmakers bent over backwards to give Foxconn everything it wanted, passing the largest public subsidy to a foreign corporation ever, in the history of the United States. There are questions about the legality about the bill the Wisconsin Legislature passed, as it allows the company to ignore environmental rules, and if sued, bypass the traditional appeal process. Most significantly, we don’t even know exactly what the deal entails. There is no fine print to review, and that wasn’t even ready before Governor Walker signed the huge incentive deal. And no one from Foxconn ever bothered to come to Wisconsin to explain the deal. There is much to be nervous, or uncertain about with this deal. But let’s hope, like they promise, this deal will indeed be transformational.