November 15, 2018

IF YOU HAVE TO BRIBE THEM YOU DON'T WANT THEM:

What are the risks of the Amazon deal? Ask Scott Walker.: Opponents of the Amazon's public giveaways say those governing Virginia and New York should take heed. (STEVEN OVERLY 11/14/2018, Politico)

The more than $3 billion in taxpayer subsidies being lavished on Amazon's new East Coast headquarters are dredging up a cautionary tale from the heartland -- the fate of Wisconsin's once-hyped Foxconn deal.

It was just last year that the Taiwan-based electronics manufacturer landed an initial $3 billion in economic incentives to open a plant in Wisconsin, in a seeming triumph for Republican Gov. Scott Walker and President Donald Trump. "This is a great day for American workers," the president enthused from the White House at the announcement 16 months ago, portraying Foxconn's arrival as a vindication of his "Made in the USA" economic agenda.

But then came more than a year of sour aftertaste about the tax breaks, regulatory rollbacks and other favors that Wisconsin was handing Foxconn. The cost of the state incentives continued to climb while the size of the factory and number of new jobs appeared to be shrinking -- a reality that may have contributed to Walker's ouster at the polls last week.

Opponents of Amazon's public giveaways say the leaders governing Virginia and New York should take heed.

"The fact that Walker didn't get reelected after announcing the biggest potential state deal in history speaks volumes," said Greg LeRoy, executive director of the nonpartisan watchdog group Good Jobs First, which promotes accountability in economic development.



Posted by at November 15, 2018 12:48 AM

  

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