Thu
Aug 24 2017
04:18 pm

Apple announced they are building a new data center in Iowa. They are getting $217 million in incentives to create 50 jobs. That's over $4 million per job. Apple has about $50 billion a year in earnings and $250 billion cash in the bank. Do they really need help from Iowa taxpayers?

Wisconsin recently announced $3 billion in incentives for Apple supplier Foxconn to build a factory there. The project will create 3,000 to 13,000 (yeah, right) jobs according to officials.

Tennessee announced today that Philips is locating a "center of expertise" in the Nashville area. An estimated 800 employees will handle back office accounting, HR, marketing and support operations. No word yet on what kind of incentives they will get.

These companies are making a lot of money. They don't need public assistance. The people in our state without access to healthcare or basic nutrition need public assistance.

State governments need to call a truce and just say no to these deals. The money would be better spent on schools and infrastructure and taking care of the needy, making the state more attractive to potential employers.

The problem is that if one state hands out corporate welfare to lure employers then every state has to do it to compete.

bizgrrl's picture

Ya gotta love the Foxconn

Ya gotta love the Foxconn deal.

Foxconn announced plans to build a $30 million plant in Pennsylvania.

In 2013, Foxconn’s chairman sent a jolt through this state capital when he said his company — best known for making Apple iPhones in China — would invest $30 million and hire 500 workers for a new high-tech factory in central Pennsylvania.

I'm pretty sure that 13,000 number includes the workers building the facility, thus temporary jobs. Whatever, it sounds really good and I'm sure the temporary construction work will make some people happy. If they just start it, unlike in Pennsylvania.

R. Neal's picture

Reminds me of a Danny DeVito

Reminds me of a Danny DeVito quote from Other People's Money:

Kate: Well, for someone who has nothing nice to say about lawyers, you certainly have plenty of them around.

Larry the Liquidator: They're like nuclear warheads. They have theirs, so I have mine. Once you use them, they f**k up everything.

Substitute "taxpayer funded incentives" for "lawyers" and there you go.

michael kaplan's picture

Doesn't this also happen on a

Doesn't this also happen on a smaller scale, at the local level? Do Walmart and Regal really need taxpayer 'incentives' to locate close-in?

zoomfactor's picture

Slippery slope

It's expected, now. "But what about [fill in the blank] who got $1M from the City? Surely we are just as deserving in our ability to bring about economic development and status to our town."

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