1 step towards winning a trade war
Holy 💩 guys, we are taking manufacturing back to the Midwest from China / overseas. Wisconsin paid for a large portion of the $10B factory, but it’s 13,000 US jobs from Foxconn. For reference, Foxconn has >1M employed in China. I know that they have recently gotten an Indonesian facility up and running too. Ex: If a $10,000 Oracle server costs $12,500 with tariffs, large enterprise businesses can convince a supplier (Foxconn) to move to the US! What do you all think? www.cnbc.com/amp/2019/06/12/foxconn-wisconsin-factory-will-not-just-make-tvs.html
Was Already decided under Obama
Looks like the Wisconsin legislature passed the bill in 2017, with very little democratic party support. https://wausaupilotandreview.com/2017/09/14/wisconsin-legislature-approves-3b-incentive-for-foxconn/
I think you mean, “in spite of Obama” thanks to Wisconsin politics.
There should be a total ban on importing servers from overseas on national security grounds
That’s 770K per 38K/yr job.
Check out this episode of Reply All. https://gimletmedia.com/shows/reply-all/wbhjwd/132-negative-mount-pleasant?utm_source=gimletPlayer&utm_medium=copyShare&utm_campaign=gimletPlayer
Making things more expensive for American consumers is not worth just 13k jobs. The government spent 3B in incentives, but what about the total increased cost to consumers due to tarrifs?
Yeah, I think the tariffs are going to struggle for success in certain industries. However, in the electronics industry - you just shift production to the guy who can build it cheaper. That's kind of how we made it to where we are today. That's also why Foxconn has diversified to places like Indonesia as well. I believe the only real long-term results from the trade war will be damage to China. That doesn't mean that those jobs will come to the US though.
Even in electronics, you shift production to the guy who can build it next-cheapest after the tariffs, which is still more expensive than whoever was cheapest without tariffs. Consumers foot the bill for the difference.
Give them 100% tariff now. Trump administration is not ambitious.
Let's be humane. There are PM's across the country that would suddenly get aneurysms and heart attacks.
Laugh. Minimum wage will simply triple the price..
Maybe. Foxconn promised a bunch of stuff last year but last I heard nothing materialized in their Wisconsin “factory” yet. Also, Terry Gou is running for president so Foxconn may be both showing attempts at diversification and trying to get on our good graces. Who knows if they mean it.
Maybe I’ll listen to the White House press session, but the image is a groundbreaking ceremony. Reading an older article now, Wisconsin’s legislature has already passed a $3B incentive. Fabs can take ~1-1.5 years to construct, install equipment, and start the lines.