The Wool is Removed From the Eyes!

Dear City of Racine Alderpersons, 
 
From Mish Talk - Global Economic Trend Analysis 
 
Link: https://moneymaven.io/mishtalk/economics/conn-job-foxconn-wisconsin-manufacturing-cancellations-us-labor-costs-too-high-3FBnp-e820ukdlPPFU0wrA/ 
 
Conn Job: Foxconn Wisconsin Manufacturing Cancellations, US Labor Costs Too High 
 
Foxconn already scaled back its Wisconsin plans and is about to do so 
again. US labor costs are too high. 
 
Reuters reports Foxconn Reconsidering Plans to Make LCD Panels at 
Wisconsin Plant. 
 
    Foxconn Technology Group is reconsidering plans to make advanced 
liquid crystal display panels at a $10 billion Wisconsin campus, and 
said it intends to hire mostly engineers and researchers rather than 
the manufacturing workforce the project originally promised. 
 
    Foxconn, which received controversial state and local incentives 
for the project, initially planned to manufacture advanced large 
screen displays for TVs and other consumer and professional products 
at the facility, which is under construction. It later said it would 
build smaller LCD screens instead. 
 
    Now, those plans may be scaled back or even shelved, Louis Woo, 
special assistant to Foxconn Chief Executive Terry Gou, told Reuters. 
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. 
 
    Earlier this month, Foxconn, a major supplier to Apple Inc., 
reiterated its intention to create 13,000 jobs in Wisconsin, but said 
it had slowed its pace of hiring. The company initially said it 
expected to employ about 5,200 people by the end of 2020; a company 
source said that figure now looks likely to be closer to 1,000 
workers. 
 
Conn Job 
 
Rather than manufacture LCD panels in the United States, Woo said it 
would be more profitable to make them in greater China and Japan, ship 
them to Mexico for final assembly, and import the finished product to 
the United States. 
 
“In terms of TV, we have no place in the U.S.,” he said in an 
interview. “We can’t compete.” 
 
This was a "Conn" job from the get go. Foxconn had to know US labor 
costs would be too high. The company never intended to manufacture 
here. 
 
The clear intent was to gain access to US engineers and researchers. 
 
Had Foxconn stated that upfront, there would have been no deal. So 
Foxconn promised 13,000 jobs and got $4 billion in tax breaks. 
 
Mission Accomplished 
 
Foxconn will lose those tax breaks because it will not meet hiring 
goals, except its own of course. The entire purpose of this con job 
was to hire the brightest US engineers. 
 
The manufacturing jobs will be in China with assembly in Mexico. 
Foxconn gets US engineers. 
 
Mission accomplished. 
 
Mike "Mish" Shedlock 
 
Cindy and I hope ya'all got that PLAN "B" ready! 
 
We'd suggest cutting 3 positions from the Mayor's Office - firing City 
Attorney Scott Letteney and his entire staff - and a 25% wage/salary 
cutback for all employees while increasing employee contributions to 
retirement and insurance plans by 25%. That would be a good start. 
 
If this was the Wild West - and it ain't no more - tarring and 
feathering Mayor Cory Mason would also be acceptable. It's not advised 
or condoned in any manner - Mayor Mason simply needs to resign. 
 
Sincerely, 
 
Tim & Cindy