According to the Washington Post, the bundle of financial incentives Wisconsin offered to lure Taiwanese technology giant Foxconn’s first major U.S. plant is larger than what New York, Virginia and Tennessee collectively pledged to Amazon.com, a comparison of the two development projects shows.
1. Foxconn has said its $10-billion factory in southeastern Wisconsin will create how many jobs at what rate of pay?
2. In comparison, Amazon announced this week that New York, Virginia and Tennessee will split how many jobs at what rate of pay?
3. Make a comparison of tax credits and subsidies per project based on total inflow into each geographic area. Calculate the indirect jobs at half the pay of the direct jobs. Assume that Amazon will generate the same percentage of indirect jobs. Show your calculations.
4. Why is there the disparity between the average wages for the two projects – Foxconn vs. Amazon?
Paquette, D. (2018). Wisconsin offered Foxconn more than Virginia and New York did for Amazon. The Washington Post, Nov. 15 (Retrievable online at https://www.washingtonpost.com/business/2018/11/15/wisconsin-offered-foxconn-more-than-virginia-new-york-did-amazon/?noredirect=on&utm_term=.cf45b12bfd60)