Tuesday, November 13, 2018

So NY, for Amazon HQ, gets 2X the Foxconn jobs for half the cost

Updated. You make the call:

New York State: 
Amazon Is Getting $1.5 Billion to Come to Queens. Now Begins the Fight Over if It’s Worth It.
“Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City,” the company wrote in a blog post formally announcing the deal, most of which come from a state tax credit. “Amazon will receive these incentives over the next decade based on the incremental jobs it creates each year.”
The state also offered a capital grant to the company that could total as much as $500 million that Amazon can use to build new offices. 
'It's a huge subsidy': the $4.8bn gamble to lure Foxconn to America
Foxconn itself has been more circumspect on the number of jobs it will create, saying in a press release it will “create 3,000 jobs with the potential to grow to 13,000 new jobs”. Even if 13,000 new jobs are created, Wisconsin would be paying $346,153 per job at a subsidy of $4.5bn. An astronomical sum, but nothing compared to the $1.5m per job cost if the deal ends up creating just 3,000 new positions. 
Updated, 12:00 p.m. Not to mention Virginia, which gets 25,000 Amazon jobs at the company's other new HQ locale for $819 million!

And all the Amazon jobs are supposed to average $150,000 annually, while Foxconn's have to hit about $54,000.

So which state got a better bang for its public bucks?

Here's an archive about Foxconn dating to the first we learned of its massive costs.

1 comment:

Anonymous said...

No body is getting a good deal except the corporations and their stock holders. States shouldn't be subsidizing billion dollar companies. It isn't like any of them contribute to the infrastructure or pay the external environmental costs.