Friday, December 28, 2018

Dear Village Board,

Let's do the math! 
OK - please check my figures.... 
So according to MTP Village President, along with many other SE 
Wisconsin and Racine County Residents – Foxconn will employ 13,000 
people being paid an average of $53,000 per year. 
13,000 employees times $53,000 = $689,000,000 – per year! 
So what is the price point which Foxconn must sell those LCD TV’s at 
to at least break even? (This does not take into consideration WI tax 
credits or Pollution credits) Foxconn’s  actual cost to produce LCD 
TV’s is not able to be determined at this time – so we will have to 
deal with raw numbers – based upon projections provided by MTP Village 
President David DeGroot….. 
Let us assume a price point of $250 per LCD TV – does that sound reasonable? 
So we have 13,000 employees times $53,000 = $689,000,000 – per year 
divided by $250 LCD TV’s sold annually. Remember that this amount does 
not allow for profit – or consider what is the actual price point at 
which Consumers can afford to purchase the LCD TV’s in the quantity 
required to be produced….. 
Which comes to: 2,756,000 TV’s which must be sold annually. But we 
still haven’t actually determined the cost to manufacture the LCD TV’s 
due to the cost of raw materials and production. Along with 
distribution and handling. 
While producing 2,756,000 TV’s in 12 months = 645 LCD TV’s per day – 
if the factory is operating 7 days a week. Working anything less only 
increases demands for increased productivity per hour/day . At what 
point is the Worker – “over worked”? What happens when a bathroom 
break interferes with production? 
Raising the price point only increases the demand for less wages to be 
paid with hopes for increased efficiency and less cost for 
In Asia, workers usually labor 12 hours a day, 7 days a week – so 
$53,000 per year comes to 365 X 12 divided by $53,000 =  $12.10 per 
hour. Which is way far more than Foxconn pays it’s Chinese and Indian 
Workers! And Foxconn has already stated that it didn’t take into 
account the higher US wage requirements, which it won’t pay…. 
Workers in Asia and India sleep in shifts at Company owned dorms – 
often only earning $2.50 day Compare that with taxpayer subsidized 
section 8 housing in Racine – which starts at $460/month. Who says 
Republicans hate state sponsored welfare – they are it’s biggest 
In addition, every Consumer of the Foxconn manufactured product must 
be able to afford the cost of the (usually) subscribed TV service. 
While in areas where subscribed TV service is unavailable – the LCD TV 
will be….. worthless 
Perhaps I am wrong - but it seems that SE WI is doomed to an 
increasing deflationary spiral which means that taxpayer funded 
expenses must be curtailed. Or - at least, so we think. 
Tim & Cindy 

1 comment:

TSE said...

And that's what I believe is a best case scenario - taking no other factors into account.

HEY! the large scale production of LCD TV's will save SE Wisconsin - pay high wages and benefits to even the least skilled employee.... providing them with enough $$$ to continue to provide taxing authorities with enough $$$ to continue the government employed elite - who produce nothing - to enjoy a high standard of living, early retirements, and lavish lifetime benefits - which - BTW - they NEVER funded.


It is possible - just as likely that a Monkey with a typewriter - given enough time - will write an unabridged dictionary.