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On Massive Incentives

NewarkWisconsin's Governor has taken his fair share of criticism for pledging $3 billion in incentives to Foxconn to locate a manufacturing plant in the Badger State. Many believe the 15,000 promised jobs will be temporal as automation is increasingly creeping into high-tech manufacturing. Others say that the proposed plant's proximity to Illinois will limit Wisconsin's benefit, as Illini will be snapping up a high percentage of the jobs.'s what government does.

Enter the beauty contest, recently reduced to 20 cities, for the new Amazon HQ. In a recent analysis, Wired highlighted Newark as the city making the cut that is possibly the most deserving of Amazon love. "At 7.9 percent, Newark's unemployment rate sits at roughly double the average of the other cities on the list. It has the highest poverty rate, too, with nearly one-third of its population living under the poverty line."

It's also offering the biggest dowry: $7 billion in incentives. The article is worth a it does a credible job of analyzing the pros and cons of such a move.

If nothing else...the next few months will prove interesting.

Bill Geist

Bill GeistBill Geist

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