Let’s Do the Math

From a Better Mount Pleasant: https://www.facebook.com/abettermtpleasant/

MESSAGE FROM VILLAGE PRESIDENT
Seasons Greetings!

This year, we’ve continued our work to move the transformational Foxconn project forward and have celebrated numerous milestones. Site preparation and utility and road work is underway, as is vertical construction on the first of many buildings on what is becoming the Wisconn Valley Science and Technology Park. We are already seeing the positive results of Foxconn’s investment in our community, including new jobs and business for local companies, increased opportunities for area residents who have been connected with employment and training and the announcement of significant new developments right here in Mount Pleasant.

The medical segment has certainly taken notice of us with expansion announcements from Ascension, Aurora and Froedert South. The Lake Park bluff erosion project was completed and will go a long ways towards protecting vulnerable residents as well as Village infrastructure. The Pike River pathway is nearly completed, which is a wonderful quality-of-life enhancer.

Many thanks go to our incredibly talented Village staff for the amazing work they have done this past year. This is the first full year on the job for Administrator Murphy, and we recently extended her contract. With her help, we have changed the face of Mount Pleasant. We have filled key staff positions of Finance Director and a new Accountant. Our books are balanced and our budget was approved with a drop in the Village tax rate portion of our tax bill. The goal is always to balance the needs of the Village with what our taxpayers can afford. We have added a new Human Resources Director, and adopted a pay plan and performance review process. We have bolstered the ranks of our protective services with new hires.

On behalf of the Village Board, best wishes for a happy and prosperous 2019.

David DeGroot
Village President

So according to MTP Village President, along with many other SE Wisconsin and Racine County Residents – Foxconn will employ 13,000 people being paid an average of $53,000 per year.

13,000 employees times $53,000 = $689,000,000 – per year!

So what is the price point which Foxconn must sell those LCD TV’s at  to at least break even? (This does not take into consideration WI tax credits or Pollution credits) Foxconn’s  actual cost to produce LCD TV’s is not able to be determined at this time – so we will have to deal with raw numbers – based upon projections provided by MTP Village President David DeGroot…..

Let us assume a price point of $250 per LCD TV – does that sound reasonable?

So we have 13,000 employees times $53,000 = $689,000,000 – per year divided by $250 LCD TV’s sold annually. Remember that this amount does not allow for profit – or consider what is the actual price point at which Consumers can afford to purchase the LCD TV’s in the quantity required to be produced…..

Which comes to: 2,756,000 TV’s which must be sold annually. But we still haven’t actually determined the cost to manufacture the LCD TV’s due to the cost of raw materials and production. Along with distribution and handling.

While producing 2,756,000 TV’s in 12 months = 645 LCD TV’s per day – if the factory is operating 7 days a week. Working anything less only increases demands for increased productivity per hour/day . At what point is the Worker – “over worked”? What happens when a bathroom break interferes with production?

Raising the price point only increases the demand for less wages to be paid with hopes for increased efficiency and less cost for labor/materials per unit.

The bigger question is – what will it actually cost to manufacture a LCD TV to sell in large enough quantities to make the Foxconn WI Valley project profitable, pay on the debt and associated costs, while allowing base level workers to thrive and other Businesses to prosper? The most likely answer is that: IT CAN’T FEASIBLY BE DONE.

In Asia, workers usually labor 12 hours a day, 7 days a week – so $53,000 per year comes to 365 X 12 divided by $53,000 =  $12.10 per hour. Which is way far more than Foxconn pays it’s Chinese and Indian Workers! And Foxconn has already stated that it didn’t take into account the higher US wage requirements, which it won’t pay….

Workers in Asia and India sleep in shifts at Company owned dorms – often only earning $2.50 day Compare that with taxpayer subsidized section 8 housing in Racine – which starts at $460/month. Who says Republicans hate State sponsored taxpayer funded welfare – they are it’s biggest beneficiaries. Take from the productive – to give back to “US” – your Rulers, Overlords, Landlords and Taxing Authorities.

TROUBLING INDEED!

In addition, every Consumer of the Foxconn manufactured product must be able to afford the cost of the (usually) subscribed TV service. While in areas where subscribed TV service is unavailable – the LCD TV will be….. worthless.

And what happens when the technology becomes obsolete? Residents will have to live with the consequences – which usually means abandoned buildings and polluted areas – ala Machinery Row…

Wisconsin Gov. Scott Walker pauses as he speaks at a news conference Monday, Sept. 21, 2015, in Madison, Wis., where he announced that he is suspending his Republican presidential campaign. (AP Photo/Morry Gash)

Maybe Snotty Scottie Walker will express his sympathy and condolences for the left behind workers of SE WI. *HEY* Good Luck!

*BONUS* say goodbye to Lordstown….

DETROIT (AP) — General Motors will lay off 14,700 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric vehicles.

The reduction includes 8,100 white-collar workers, some of whom will take buyouts and others who will be laid off. Most of the affected factories build cars that won’t be sold in the U.S. after next year. They could close or they could get different vehicles to build. They will be part of contract talks with the United Auto Workers union next year.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.

More than 6,000 factory workers could lose jobs in the U.S. and Canada, although some could transfer to truck and SUV plants.

https://www.cleveland.com/business/2018/11/gm-to-slash-14700-jobs-in-north-america-lordstown-plant-faces-closure.html

While Collapse is stalking the land….

The Christmas present nobody wants sits under the tree: a worldwide finance crisis along with an establishment that appears to be coming apart at the seams.

The status quo is unraveling from all sides, at the top especially, where managers cannot conceal their panic:

steve from virginia @econundertow

When the captain of the ship starts taking the covers off the lifeboats there is a problem. https://www.washingtonpost.com/business/2018/12/23/treasury-secretary-makes-unusual-pre-christmas-call-top-bank-ceos-amid-market-mayhem/ 

Treasury secretary startles Wall Street with unusual pre-Christmas calls to top bank CEOs

Treasury Secretary Steven Mnuchin called the heads of the biggest U.S. banks on Sunday to confirm they are financially sound and not experiencing excessive financial stress, a highly unusual outreach…

washingtonpost.com

Oops!

“Every banker knows that if he must prove he is worthy of credit, however good might be his arguments, in fact his credit is gone.”

— Walter Bagehot

https://www.economic-undertow.com/2018/12/25/collapse-something-or-other/

OOPS – Indeed. Color me pissed off – Yellow Vests!

If French president Emmanuel Macron is hoping for some holiday respite from the anti-government pro citizen/anti elite protests which have rocked France, he might want to avoid the presidential retreat along the Mediterranean coast.

Around 40 “yellow vest” demonstrators on Thursday tried to storm the medieval fort of Bregancon that serves as Mr Macron’s summer retreat before being turned back by police, the mayor of nearby Bormes-les-Mimosas, Francois Arizzi, told AFP on Friday.

https://www.news.com.au/world/europe/yellow-vest-protesters-target-macrons-vacation-hideaway/news-story/8461b95521d038445cfcc6bc76a06b03

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