Sunday, December 22, 2019

The (Fox)Conn Continues

So, Scott Walker gives billions away to Foxconn. Thousands of jobs are promised. Now, according to Foxconn, Wisconsin actually doesn't have the workers to fill the jobs. Foxconn Says It Can't Find Enough Workers For Wisconsin Project. WTF?

Hopefully everyone can see this bribery that is called economic development is pure extortion. Inflated economic impact reports are released along with CEOs and politicians congratulating each other on the wonderful "partnership" they've created, which will result in massive job growth.

Business 101 instructs that you don't locate your business somewhere that can't efficiently provide your needed inputs (labor, obviously, being one of those).

The Wisconsin-Foxconn debacle perfectly illustrates how distorted our economic development policies have become. To pretend that Wisconsin had some underlying competitive advantage regarding Foxconn's business needs, and they just needed a little boost in the form of Wisconsin subsidies to reach that reality. Then, slowly, the job numbers decrease, and facility construction is delayed. Now, Foxconn tells us Wisconsin doesn't even have the workers for the jobs they are planning in Wisconsin. This is just another crony capitalist shakedown.

For Further Reading:
Skills Shortage, Labor Shortage, Skills Gap ... All Bullshit
The So-Called "Skills Gap" Is Complete Bullshit
More Skills Gap Crap

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