Did Scott Walker and the Republicans Throw the Governors Race to Avoid Dealing With The Foxconn WEDC Contract Default?

The race for WI Governor was nearly too close to call, and while LT. Governor Rebecca Kleefisch said a recount would be demanded, that demand never came.

Walker considers seeking recount as Evers wins governor’s race by thin margin

Gov. Scott Walker’s hopes for a third term were dashed early Wednesday when vote totals confirmed Democratic challenger Tony Evers won the race.

Evers, the state’s superintendent of schools, claimed 49.6 percent of the vote to Walker’s 48.4 percent, an advantage of just 1.2 percent, according to unofficial totals. Third party candidates received the remaining handful of votes.

Walker had not conceded as of early Wednesday. He is considering calling for a recount, his running mate, Lt. Gov. Rebecca Kleefisch, said. Final totals would have to show the race within 1 percentage point for the race to be eligible for a recount.

More than 2.6 million votes were cast in the race decided by about 30,000 votes.

What happened? Did the Republicans just not get out the vote? Or did Republicans switch their votes to Evers – (or a little of both) because they knew the Foxconn WEDC Contract was in default somewhere between April and May 2018, because then Governor Scott Walker denied Corning Glass a requested subsidy which was essential for Foxconn to create the stipulated  Generation 10.5 TFT/LCD fabrication facility and supporting operations.

Here is what the WEDC contract stipulates:

And in order for Foxconn to build that facility, it would require the addition of a nearby supplier of the glass – and Foxconn asked Corning Glass if they would be interested. Of course, Corning Glass was interested, but only if they too received a generous subsidy from Governor Scott Walker and State of WI.

Corning CEO says Foxconn glass plant would have to be subsidized

Walker, Hogan have said state does not plan to offer incentives to Foxconn suppliers

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Louis Woo, a special assistant to Foxconn chairman Terry Gou and a key negotiator in the Wisconsin deal, told Reuters.

Bloomberg reports that Woo said there were no plans to scrap the facility altogether but that the company was reconsidering what operations might be best for the site.

Woo told Reuters that Foxconn couldn’t compete in the US TV market if it used domestic labor to build LCD panels — something that outside commentators have previously noted. “In terms of TV, we have no place in the U.S.,” said Woo. “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Foxconn was given exemptions from environmental regulations and subsidies worth $4.1 billion to create manufacturing jobs in Wisconsin. However, ever since the flurry of publicity with which the deal was announced (including a photo-op with President Trump, former Wisconsin Gov. Scott Walker, and Gou breaking ground on the new site), the terms of the arrangement have been continually downsized. It’s not clear how much further they may be changed.

With Foxconn deciding to “Opt Out” of funding the required Billion Dollar investment in the Corning Glass manufacturing facility, Corning Glass turned to then Governor Scott Walker and asked for the Subsidy. Walker said – “NO” – thus effectively killing the project on May 1, 2018, placing the WEDC contract in default.

Foxconn: Top official says Wisconsin will not provide glass-maker new financial incentives

ADISON – The state won’t provide any new taxpayer subsidies to lure a key glass supplier to Foxconn to locate in southeastern Wisconsin, the state’s top jobs official said Tuesday. 

In an interview, the head of the Wisconsin Economic Development Corp. said state taxpayers have maxed out on their contribution to the Foxconn project, including related businesses such as Corning Inc., which could bring hundreds of additional jobs to Racine County. 

WEDC Chief Executive Officer Mark Hogan said that the state had already done all it needs to do to win those jobs by offering billions of dollars in incentives to Foxconn Technology Group of Taiwan. Foxconn could share those incentives with Corning and other suppliers, but the state would not expand these subsidies to get jobs that were part of the original deal and analysis done last year, he said. 

Hogan made his statements after Corning’s CEO had said his company would need additional help from Foxconn or another source before coming to Wisconsin. 

That’s it – end of story.

Former Governor Walker and his Administration made the call to allow Foxconn to default on the WEDC contract. At that point, the operations currently in progress at Mount Pleasant, Caledonia, and Racine County should have ceased, immediately. But oddly enough, they didn’t, while public officials such as Racine County Executive Jonathon Delagrave and Mount Pleasant Village President David DeGroot lied and claimed “The Project” was really going to happen.

This is what the Politicians promised the People:

This is what the Politicians have delivered (never mind the $1,000,000,000 or more in debt):

And the above building, is a “Trade Secret”! Possibly part of a crime scene, or perhaps just the Scott Walker Memorial Field of Dreams.

Foxconn wins approval of building plans that it has labeled ‘trade secrets’

Foxconn Technology Group has received conditional state approval to begin building the footings and foundations for its promised flat-screen factory in Mount Pleasant.

The Wisconsin Department of Safety and Professional Services issued the go-ahead last week on initial plans for the much-awaited project, documents released Monday show. Foxconn will need to return to the agency for review of plans for further construction.

The plans for the footings and foundations, meanwhile, remain under wraps. Foxconn contends the documents are confidential trade secrets, which are exempt from public disclosure under Wisconsin law, Brennan Nardi, communications director for the Department of Safety and Professional Services, said by email.

The department will ask Foxconn to back up its assertion that the plans are trade secrets, and, after receiving the response, determine whether the plans can be made public.

Meanwhile, Mount Pleasant Residents are beginning to feel the sting from the Foxconn default, as noted by A Better Mount Pleasant:

Meanwhile, most WI based Mass Media continues to obfuscate the real reason why “The Project” failed and the Republican Treasonous Traitors continue to scapegoat WI Governor Dr. Tony Evers. It is to be expected.

The fact remains that as of May 1, 2018, former Wisconsin Governor Walker killed the Foxconn Project, and the desperate Republicans  (likely) decided to throw the election in order to run away and fight another day.

   

One more $BILLION – and The Project would have happened – blame Scott Walker and the Republicans for the Foxscam Failure.

More problems for Scott Walker’s corrupt WEDC – Breaking news:

Audit finds ongoing problems with WEDC, tax credits for jobs created in other states

Wisconsin’s economic development agency that negotiated the state’s deal with Foxconn Technology Group continues to have a host of problems with how it tracks job creation and awards given to companies, an audit released Friday found.

The report from the nonpartisan Legislative Audit Bureau examined the Wisconsin Economic Development Corp., a quasi-private agency created under Republican former Gov. Scott Walker that is in charge of job creation efforts in the state.

The agency, known as WEDC, has struggled since its creation in 2011 on a number of fronts, including recovering loans made to companies that don’t meet contractual requirements. It has been in the political crosshairs for years and remains a focus because of the Foxconn deal. Under that agreement, the Taiwan-based electronics manufacturer could receive more than $4 billion in state and local tax credits if it invests $10 billion and creates 13,000 jobs in Wisconsin.

The audit covered July 2017 through December 2018, just before Evers took office and during the time when the Foxconn deal was reached.

The audit said that only about 35% of required jobs had been created by recipients of 68 tax credit and loan awards through the fiscal year that ended in June 2018. The report said WEDC could have required loan recipients to repay $4 million and $414,000 in previously awarded tax credits.

That money could have been used to support other projects, the audit said.

The report also said WEDC awarded $462,000 in tax credits for creating jobs to one unnamed recipient that actually lost 17 jobs.

WEDC also doesn’t know exactly how many jobs were created or retained as a result of awards that had ended because it did not collect enough information from recipients, the audit said. Between 2011 and 2018, 436 awards totaling nearly $131 million ended.

The audit also faults WEDC for not consistently complying with state laws and its contracts because it awarded tax credits to recipients that created or retained jobs filled by people outside of Wisconsin or who were not state residents.

 

It cited one example in which an unnamed recipient received $61,100 in tax credits for creating 261 jobs filled by people who lived in 36 states, none of which were even contiguous to Wisconsin.

 

Addendum:

Does a NOTICE of DEFAULT exist, issued either by WEDC or FOXCONN? It seems likely, as Foxconn contacted WI Governor Dr. Tony Evers with a request to renegotiate the defaulted contract. From the WEDC Contract:

 

 

 

 

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More Cracks Appear in the Fox-Scam as Foxconn Admits it Underestimated WI Labor Costs

Well, well, the political love-fest over the much bally-hooed and promised 13,000 employees at Foxconn is already being shot down – by Foxconn. It appears that they underestimated their labor costs in WI – WHOOPS! – whose cost for workers is much higher than those in existing Foxconn manufacturing facilities located in China, India and Third World Hell-Holes. It appears that the politicians, in their haste to help Guv. Scott Walker out of his jam for failing to produce 250,000 jobs, simply didn’t understand that Foxconn would have to be able to manufacture LCD TV’s at a price point low enough to sell millions of units and still make a profit. Political overreach by Politicians who know nothing about operating a profitable business – only tax and spend.  TSK – TSK.

By the way – 250,000 imaginary jobs minus 13,000 imaginary jobs still leaves a deficit of 237,000 imaginary jobs. Just IMAGINE THAT! As for those 13,000 jobs – well, they may very well appear – but it still has to be determined how many jobs each i-SLAVE employee will be assigned.

From The JT, August 22,2018:

Adjusted business model

Woo said Foxconn has dramatically changed its initial presumptions about how it would manufacture in the United States. Originally the company figured it would simply duplicate its China model here — until it realized that the much higher labor costs here would guarantee failure.

“If, six months ago, you asked me: What would be the mix of labor? I would pull out the experience that we have in China and say, ‘Well, 75 percent assembly line workers, 25 percent engineers and managers,’ ” Woo said.

“So, ask me the question today,” he said, then replied, “now it looks like about 10 percent assembly line workers, 90 percent knowledge workers.” Advanced manufacturing here will be done largely by robots and a lot of automation, he said.

More thoughts from A Better Mt. Pleasant:

When U.S. manufacturers began moving operations overseas, they told the American people that it was to decrease costs and increase productivity – they said, as a result of increased labor costs. As we know now, it led to the demise of American manufacturing and catastrophic job loss.

Those companies weren’t lying. It did save them money.

When modern manufacturing companies talk about the increased use of robotics, they say it is to decrease costs and increase productivity. In today’s JT, Terry Woo says the employment model in Wisconsin has already changed because “much higher labor costs here would guarantee failure.”

He’s not lying. Critics at the announcement of the Wisconsin plant have always wondered how they would remain profitable with American labor costs.

Foxconn has invested billions into robotics. They have not been shy in international press saying wish to replace all workers with robots.

Of course there will be jobs. However, even before the last resident has left the area – this deal has gone from “75 percent assembly line workers, 25 percent engineers and managers,” to “10 percent assembly line workers, 90 percent knowledge workers.”

What is the next iteration of Foxconn’s employment strategy? We can’t know until they tell us – but one thing we do know, and history has shown us – it will be whatever benefits Foxconn’s profitability.

Just remember, you gave them $4.5 billion to build it.

While Foxconn now refuses to specify just what type of manufacturing facility they will build at their Mount Pleasant WI campus:

From Journal Sentinel:

Foxconn now declines to say it plans to build type of factory named in state, local contracts

Foxconn Technology Group on Wednesday said again that it will create 13,000 jobs in Wisconsin and invest $10 billion in its planned manufacturing campus, but declined to say it still plans to build the type of factory specified in its contracts with state and local government.

Responding to criticism from Democrats over changing plans for a project that could receive some $4 billion in public subsidies, Foxconn reiterated that it is committed to the jobs and investment numbers.

But in a shift from its stance of two months ago, the company on Wednesday did not offer assurances that it still plans to build the type of liquid crystal display panel plant the contracts cite.

No surprise here, as The Fourth Industrial Revolution is already here – along with the demands for a UBI (Universal Basic Income) brought on by:

The Robot, Unemployment, and Immigrants

The political approach to automation is similar, The World Economic Forum of Davos of 2016 was dedicated to the Fourth Industrial Revolution. The founder and director of the Forum, the economist Klaus Schwalb, even took to the effort of writing a book on the subject, for the conference: a book in which he expresses his concern. Previous industrial revolutions liberated humankind from animal power, made mass production possible and brought digital capabilities to billions of people. This Fourth Industrial Revolution is, however, fundamentally different. It is characterized by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human. We need to take a concerted approach in the world, to make the positive impacts overriding the negative ones. The theme was practically ignored at Davos 2016, because politicians discuss now only themes at a short term: what has to be treated during an electoral period. In particular, Schwab called for leaders and citizens to “together shape a future that works for all by putting people first, empowering them and constantly reminding ourselves that all of these new technologies are first and foremost tools made by people for people. “Clearly, that goes against the tide of nationalism, the new vision for the US, India, Japan, China, Philippines, Hungary, Poland, Great Britain, Turkey and so on.

A number of economist and influential people, over the years have come out with the idea of a Universal Basic Income. It is time to cushion the society from tensions, instability and unemployment by giving to every citizen a fix income, so to give him a dignified life: and by spending its UBI, he would generate wealth and increase demand, which would stimulate therefore growth, and make a society just and stable. Martin Luther King was an early proponent, like the neoliberal economist Milton Friedman. Now the billionaires from Silicon Valley, like Elon Musk, Mark Zuckerberg, the venture capitalist Mark Andreessen, the democrat senator Bernie Sanders, have all expressed support to the idea of a UBI. And in the coming presidential American elections, a New York tech executive, will run with UBI as his political platform. He observes that Trump did particularly well in Michigan, Ohio, Pennsylvania and Wisconsin, states which have lost four million jobs because of automatization. “Higher the concentration of robots, higher the number of disgruntled people wo vote for Trump.” He plans to cover the two trillion dollars that UBI would cost (half of the US budget), with a new Vat tax, and taxation on the companies who profit from automation. Of course, in the US the idea that people who do not work receive public money, is the closest thing to communism, and UBI faces formidable cultural obstacles. But Andrew Yang, the candidate, says we will have otherwise in a few years “riots in the streets: just think to the one million of truck drivers, who are 94% males, with an average education of high school, suddenly all jobless…”

While the intelligentsia  of China speak about ABOLISHING iSlavery:

Old and new working-class people in China are adopting and appropriating digital media, while the digital economy is creating entirely new jobs, communities, and socio-political dynamics. The digital working class marks a fourth stage in the modern history of Chinese class politics, when China has become the world’s factory with immense labor power and increasing social inequality, when the content of Chinese working-class culture has become more diverse and impactful than ever as could be seen in the Fan Yusu phenomenon in spring 2017, all happening at a time when the results of China’s internal processes become more consequential for the world at large. What are the characteristics of China’s digital working class? How can we make sense of it, through what conceptual frameworks? This talk shall discuss the applicability of the “circuits of labor” model (Qiu, Gregg and Crawford, 2014), its premises, limits and implications for future research.

Big changes are now happening in both China and Mount Pleasant! Political Failure is now assured.

Please join Cindy and me in JUST SAYING NO to allowing Governor Scott Walker, Racine County Executive Jonathan Delagrave,  City of Racine Mayor Cory Mason & MTP President David DeGroot to violate the Wisconsin Constitution (and their Oath of Office) by granting special rights to Corporate interests, stealing people’s property, destroying multi-generational Farms alongside an entire long established Community, loosening environmental protections, permitting heavy metals water pollution, instituting slave labor wages, providing taxpayer subsidies to multi-billionaire Corporations, and politician overreach.

It’s Billy Preston! A politicians BFF!

 

BREAKING NEWS: House Passes Sensenbrenner Bill to Protect Private Property Rights – UPDATED!

Washington, D.C.—Today, the House unanimously passed Congressman Jim Sensenbrenner’s (WI-05) Private Property Rights Protection Act (H.R. 1689).

The bill addresses the controversial Supreme Court decision in the 2005 case Kelo v. City of New London, which expanded the eminent domain power granted by the Fifth Amendment of the Constitution. In Kelo, the Court ruled that “economic development” can be justified as a “public use” under the Constitution’s Takings Clause.

To combat this expansion of power, H.R. 1689 would make any state or locality that uses the economic development justification for eminent domain ineligible from receiving federal economic development funds for two years. This creates a major incentive for governments to respect the private property rights of its citizens.

Additionally, the legislation bars the federal government from exercising eminent domain powers for the purposes of economic development.

Rep. Sensenbrenner“This bipartisan legislation restores the individual private property rights guaranteed in the Fifth Amendment. The framers of the Constitution would be horrified by the paradigm created by Kelo:a government free to seize and transfer private property from individuals with fewer resources to private entities with more. I’m grateful to my colleagues for their support of this bill and urge the Senate to immediately send it to the President’s desk.”

Congressman Sensenbrenner offered the follow remarks on the House floor:

 

“Mr. Speaker,

I am pleased that the House is considering H.R. 1689, the Private Property Rights Protection Act. My bill aims to restore the property rights of all Americans that the Supreme Court took away in 2005.

The Founders of our country recognized the importance of an individual’s right to personal property when they drafted the Constitution. The Fifth Amendment states “nor shall private property be taken for public use, without just compensation.” In Kelo v. the City of New London, the Supreme Court decided that “economic development” could be a “public use” under the Fifth Amendment’s Takings Clause. In a 5-4 decision, the Court held that the government could take private property from an owner, in this case Susette Kelo, to help a corporation or private developer, in this case Pfizer.

The now infamous Kelo decision created a massive backlash. As former Justice O’Connor stated, “The government now has license to transfer property from those with fewer resources to those with more.  The Founders cannot have intended this perverse result.” Even in the 13 years since Kelo, polls show that Americans overwhelmingly oppose property being taken and transferred to another private owner, even if it is for the public economic good. 

The Private Property Rights Protection Act is needed to restore to all Americans the property rights the Supreme Court invalidated. Although several states have since passed legislation to limit their power to eminent domain, and a number of supreme courts have barred the practice under their state constitutions, these laws exist on a varying degree. H.R. 1689 would prohibit state and local governments that receive federal economic development funds from using economic development as a justification for taking property from one person and giving to another private entity. Any state or local government that violates this prohibition will be ineligible to receive federal economic development funds for two years.

The protection of property rights is one of the most important tenets of our government. I am mindful of the long history of eminent domain abuses, particularly in low-income and often predominantly minority neighborhoods, and the need to stop it. I am also mindful of the reasons we should allow the government to take the lead when the way in which the land is being used constitutes an immediate threat to public health and safety. I believe this bill accomplishes both goals.

I urge my colleagues to join me in protecting private property rights for all Americans and limiting the dangerous effects of the Kelo decision on the most vulnerable in society. I reserve the balance of my time.”

THERE IS HOPE FOR THE OPPRESSED and BELEAGURED RESIDENTS OF MOUNT PLEASANT!

Please join Cindy and I is JUST SAYING NO to allowing Governor Scott Walker, Racine County Executive Jonathan Delagrave,  City of Racine Mayor Cory Mason & MTP President David DeGroot to violate the Wisconsin Constitution (and their Oath of Office) by granting special rights to Corporate interests, stealing people’s property, destroying multi-generational Farms alongside an entire long established Community, loosening environmental protections, permitting heavy metals water pollution, instituting slave labor wages, providing taxpayer subsidies to multi-billionaire Corporations, and politician overreach.

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

SUPPORT PRIVATE PROPERTY RIGHTS – CALL YOUR U.S. SENATOR TODAY

Our right to own private property is one of the most fundamental rights of Americans. That right is supported by the Fifth Amendment to the US Constitution allowing the government to take private property for public use with just compensation. Those rights have been threatened since the 2005 US Supreme Court decision in Kelo vs. City of New London. In a narrow decision, the court allowed the taking of private property for economic development. The decision was widely criticized and since then, 46 states have enacted new laws to protect private property rights.

On July 23, 2018, the US House of Representatives voted UNANIMOUSLY to pass H.R. 1689, the Private Property Rights Protection Act of 2017. The bill would prohibit state or local government from exercising its eminent domain authority for economic development. This is a bi-partisan issue – supported by both Republicans and Democrats alike. This legislation has been introduced in every legislative session since the Kelo decision in 2005 but when it has made it to a vote in the House, it died in the Senate Judiciary Committee.

Below is a list of all Senators on the Senate Judiciary Committee. If your state is on the list, please call one or both of your Senators and ask them to bring the Private Property Rights Protection Act to a vote. (Or just call each of them anyway – it can’t hurt!)

Don’t let them get away with claiming to support private property rights while failing to support efforts to strengthen laws to protect those rights. I have also included contact information for Wisconsin Senators Tammy Baldwin and Ron Johnson. Please call them and ask them to help get H.R. 1689 signed into law.

This literally will take you less than five minutes but could impact you and your family for generations. Thank you.

SENATE JUDICIARY COMMITTEE
Arizona / Jeff Flake (202) 224-4521
California / Dianne Feinstein (202) 224-3841
California / Kamala Harris (202) 224-3553
Connecticut / Richard Blumenthal (202) 224-2823
Delaware / Christopher Coons (202) 224-5042
Hawaii / Mazie Hirono (202) 224-6361
Idaho / Mike Crapo (202) 224-6142
Illinois / Dick Durbin (202) 224-2152
Iowa / Chuck Grassley (202) 224-3744
Louisiana / John Kennedy (202) 224-4623
Minnesota / Amy Klobuchar (202) 224-3244
Nebraska / Ben Sasse (202) 224-4224
New Jersey / Cory Booker (202) 224-3224
North Carolina / Thom Tillis (202) 224-6342
Rhode Island / Sheldon Whitehouse (202) 224-2921
South Carolina / Lindsey Graham (202) 224-3808
Texas / John Cornyn (202) 224-2934
Texas / Ted Cruz (202) 224-5922
Utah / Orrin Hatch (202) 224-5251
Utah / Michael Lee (202) 224-5444
Vermont / Patrick Leahy (202) 224-4242

WISCONSIN SENATORS
Tammy Baldwin (202) 224-5653
Ron Johnson (202) 224-5323