Examining the Prioritization of the Economy Over the Environment Through the Example of Foxconn
What is Foxconn? Foxconn is a company that is based in Asia and manufactures LCD screens. This industry has not yet come to the United States. They make the screens used by Apple and other major technology companies for their electronic devices, such as cell phones and televisions. The Wisconsin state government has persuaded Foxconn to locate its preliminary international plant in Mt. Pleasant, Wisconsin. The government did this through incentives that included leniency on environmental regulations for the plant and taxation benefits. The plant is projected to cover 26 acres of land in an area that primarily contains wetlands, that would be destroyed with the plants creation and future expansions. The citizens in the area where the plant will be located are having to pay $764 million to create the infrastructure to support the plant, while over $4 billion will be shelled out in tax incentives. The issue of Foxconn is an issue that splits the political parties of Wisconsin, with conservatives valuing the economic benefits of the plant and liberals opposing the destruction of important ecosystems, wetlands, and questioning the value of this historic deal for Wisconsin workers. Current Status In the current state, Foxconn will receive over $4 billion in tax incentives. They pledge to create 13,000 jobs and invest $10 billion, however only 3,000 jobs would be initially created. It is expected to start construction this year, and fill 26 acres of land, with the possibility of expansion in the future. The bill signed by Governor Walker will allow Foxconn to go forward without an environmental impact statement, the ability to fill wetlands and change paths of waterways, and discharge materials without DNR approval. Foxconn would also be taking approximately seven million gallons of water from Lake Michigan daily, with nearly 40% of the water not being returned, due to evaporation or use in the manufacturing process. An issue on the rise for Foxconn and the Wisconsin government is lawsuits being brought against the state and Foxconn for the displacement of rural Mt. Pleasant residents. The lawsuit has not yet been filed, but has the possibility to impact the progress of the deal. Important People The Governor of Wisconsin, Scott Walker, likes the idea of bringing Foxconn to Wisconsin. The Taiwanese company would receive up to $3 billion in state taxpayer funds in exchange for the building of the plant that would employ up to 13,000 people. Walker also stated that people working for Foxconn would be making an average pay of $53,000. The Village President of Mt. Pleasant, Dave DeGroot, played an important role in Racine’s County’s successful bid for Foxconn. According to DeGroot, it could be “the biggest economic development prize ever in Wisconsin”. Additionally, by 2023 the factory campus will contain $1.4 billion in taxable value. That will generate enough money to offset the village and county expenses related to the project. Even though this seems like a good idea on paper, there are a lot of concerns that people have. State Senator, Jon Erpenbach (D-Middleton), is worried that Walker will make promises that require legislative approval and then blame lawmakers if they don’t go along because of the cost. Also, people are concerned that Walker may give up too much. In 2010, Walker ran on the promise to create 250,000 jobs but still hasn't reached that mark. Power-Dynamic The current power-dynamic of this issue is in the favor of big business, Foxconn, because of the government's economic values. Governor Walker views the manufacturer as a large boost to the state’s economy, expecting an increase in state GDP and a decrease in state unemployment. Walker, using his position as governor to his advantage, incentivized Foxconn to come to Wisconsin through a bonus package, which included leniency in environmental regulations for the Mt. Pleasant plant. This use of governmental power has been the primary reason that Foxconn and the Wisconsin government have maintained constant control of this controversy. On the other end of the spectrum, the weaker stance, are the people who are being coerced into moving, because of the placement of the plant, and the environmentalists. They both have little control over the situation, due to the domination of government intervention. The power dynamic has the capability of changing through two main ways. The first is that some homeowners who are being displaced are suing the government for enacting eminent domain. This could result in problems for both the government and Foxconn, and result in a slowdown in the process. The second way the power dynamic could change is through the citizens of Wisconsin. If the issue becomes relevant enough in the lives of Wisconsin voters before the plant is put in, then there could be either petitions or major electoral shifts that occur in the 2018 midterm election. This would result in a change in Wisconsin politics, and could change the entire issue that surrounds Foxconn. Importance The Wisconsin government has given Foxconn a historic deal to incentivize them into locating in Wisconsin. They have allowed certain environmental safeguards to be overlooked, although Foxconn will be using toxic materials in the manufacturing process, using a substantial amount of water, and locating over wetlands that will be destroyed. The main issue here is the precedent this deal sets for other Wisconsin businesses. Going forward it will be much more difficult to keep businesses in accordance with environmental policies and regulations. Wisconsin's GOP has increasingly been moving away from the ideas of conservation Wisconsin once exemplified. With the leadership of Governor Scott Walker, the economy has been prioritized over the environment, fighting for deregulation to boost the economy. However, because of the attitudes of the current administration regarding environmental protection, especially the head of the EPA Scott Pruitt, now more than ever it is important for states to have strong policies in place. Bibliography Rosen, Michael. “How Wisconsin Can Help Its Own Unemployed Workers Get Jobs at Foxconn.” Milwaukee Journal Sentinel, Milwaukee, 26 Jan. 2018. “Wisconsin Landowners Fight Effort to Take Land for Foxconn.” Chicagotribune.com, 11 Jan. 2018. Bergquist, Lee, and Don Behm. “Foxconn Deal Raises Wide Array of Environmental Questions.” Milwaukee Journal Sentinel, Milwaukee, 21 Aug. 2017. Barboza, David. “Why Foxconn will impact Wisconsin forever.” New York Times, 05 Mar. 2018. Aronoff, Kate. “Stunning Special Election in Wisconsin Shows Scott Walker's Foxconn Deal Isn't the Political Winner It Was Sold As.” The Intercept, 19 Jan. 2018. Bergquist, Lee. “Wisconsin, under Scott Walker, No Longer Leads in Conservation.” Journal Sentinel. Beck, Molly. “Bill Significantly Rolls Back Environmental Rules for Foxconn.” Madison.com, 28 July 2017. Paquette, Danielle. “The Foxconn Deal Trump Championed Won't Make Wisconsin Money for 25 Years, Report Says.” The Washington Post, WP Company, 9 Aug. 2017 |