Dear Editor:

After Governor Walker announced the deal with Taiwanese manufacturer Foxconn to build a factory in Wisconsin, there were some misleading headlines published about the project. Many of you reached out to me with the following questions: Why would we spend $3 Billion in incentives? Why should we be subsidize a foreign company? How will this benefit Wisconsin?

I believe those questions can be answered. Economists know, and the real economy verifies, that every dollar invested turns over 7 times. If Foxconn invests $10 billion dollars into Wisconsin, that will turn into $70 billion dollars in the economy. This is due to the supporting businesses, suppliers, vendors, customers, construction crews, travel, employee’s homes, and the list could go on and on. This is NEW money in to our state from a foreign source that we do not have now.

Let me break it down for you the way I see the Foxconn Project in three basic principles:

1.) If we do nothing, we get nothing.

2.) Something that isn’t yours doesn’t cost you anything when you allow the owner to keep it.

3.) Completely unique industries that are thriving, profitable, and in high demand are the kind we want in the State.

If we (the State) do nothing to lure Foxconn, we get nothing…no Foxconn, no additional jobs, no spinoff businesses supplying, distributing, shipping, and consuming the products Foxconn produces. All of the tax money from that economic activity will go into a pot of money that doesn’t exist currently, and wouldn’t exist unless this company came to our State.

The taxes on the goods and services that the employees as well as the supporting businesses and their employees will pay is a very big number. This all goes into the “pot of money that doesn’t exist right now”. Projections on this can vary somewhat, but even the most pessimistic economist or business person can see that Foxconn will bring in far more than the $3 billion dollars in 15 years that are promised in tax credits and incentives.

Our ability to invest internationally and others ability to invest in our country has been a good thing for the global economy and has helped lift the people of many nations out of poverty, while increasing our own standard of living in the USA.

Foxconn could have chosen to locate anywhere. They could have chosen California, Texas, Mexico or even Canada. This is hard evidence our state is headed in the right direction.

Sure, we could let this company invest elsewhere. The bottom line is that it will “cost” the taxpayers of our State very little, if anything. The rewards of doing this will be a vibrant 21st century economy throughout our State.

Make it a great day!

Bob Kulp, 69th District Wisconsin State Representative

Editor’s note: Wausau Pilot & Review gladly publishes letters to the editor on topics affecting residents of central Wisconsin. Submit letters to Anonymous letters are not considered.

3 replies on “In Your Words: Foxconn will bring economic boost to Wisconsin”

  1. 69th District Wisconsin State Representative Bob Kulp writes, “Economists know, and the real economy verifies, that every dollar invested turns over 7 times.”
    I’d be grateful if Rep. Kulp would cite for us the economists he consulted that put forward this claim of a 7X “magic” multiplier. All of the sources I could find report that the multiplier does not exist. One economist, Dave Swenson from Iowa State University wrote of the 7X claim, tongue in cheek I suspect, “wouldn’t it be cool if money really did breed like bunnies?”

  2. I, too, will appreciate that Representative Kulp cite his sources for the 7X returns assertion.

    Why does a company that had revenue of $136 BILLION last year alone need corporate welfare of $150 million/year for 15 years from Wisconsin??

    Interesting, too, to note that the incentive package that the Governor has offered includes almost $300 million to finish the interstate between Milwaukee and Chicago. I’m assuming, so that workers from Chicago can get to their new jobs at FoxConn more easily. Without the state of Illinois having to lay out even one penny.

    Tell me again how this economically benefits any area in Wisconsin other than the greater Milwaukee, and northern Illinois.

  3. By the wat, Representative Kulp’s assertion that FoxCconn could have located “amuwhere is misleading.

    The Milwaukee Journal Sentinal reported that the plant that FoxConn wants to build must be near a major water sourse, as water is used “…in prodigious amounts in making the flat-panel displays that the new plant would likely produce.” There’s a reason that 5 of the 6 states that FoxConn was eyeing for this plant bordered one of the Great Lakes….

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