% >> REPORTING FROM BROAD HEAD, I
% AM ZACH SCHULTZ FOR "HERE & N
% NOW."
% >> LAWMAKERS SCRAMBLING TO MAKE
% DOWN TO A WIRE DEER TO RAISE THE
% DEBT LIMIT.
% WHAT WOULD A NEAR DEFAULT MEAN
% FOR WISCONSIN'S ECONOMY?
% WE TURN TO WISCONSIN DEPARTMENT
% OF REVENUE SECRETARY PETER
% BARKA.%>> WHEN IT COMES TO A
CLOSE OF
% THE U.S. GOVERNMENT GOING INTO
% DEFAULT, DOES REACHING THE EDGE
% DO ITS OWN KIND OF DAMAGE?
% >> CERTAINLY DOES.
% 2011 LAST TIME THEY CAME UP TO
% EDGE OF DEFAULT, UNDER OBAMA
% ADMINISTRATION, AAA TO DOUBLE A
% PLUS NEVER ELEVATED AGAIN.
% IF THEY DO THIS AGAIN VERY WELL
% COULD SEE ANOTHER DOWNGRADE,
% CATASTROPHIC IN MANY WAYS.
% FIRST OF ALL, COST MORE FOR THE
% FEDERAL GOVERNMENT TO BORROW.
% SECONDLY, MARKETS ALWAYS TIP.
% MEANS FOR SENIORS, WHO ARE
% DEPENDING ON 401KS, THEY GET
% WORRIED AND TAKE A DIP.
% BEING CLOSE IS BAD ENOUGH.
% IF THEY DEFAULT, WE ARE TALKING
% ABOUT SIGNIFICANT PROBLEMS,
% 16,400 JOBS LOST IN WISCONSIN
% ACCORDING TO LOUISIANA
% ANALYTICS, DECLINE IN PAYROLL.
% WITH HOLDING TAXES GO DOWN,
% CORPORATE TAXES GO DOWN.
% IT WOULD HAVE AN EFFECT ON
% WISCONSIN AS WELL.
% >> WHERE AND WHY ARE THOSE JOBS
% LOST?%>> WHAT ENDS UP HAPPEN
ING WHEN
% THE MARKETS SUFFER, THAT IS THE
% FIRST STAGE.
% INVESTMENT DOLLARS ALSO START TO
% DRY UP.
% SO BUSINESSES THAT MAYBE WERE
% GOING TO EXPAND OR DEPENDENT ON
% HAVING EXTRA CAPITAL ALL THE
% SUDDEN HAVE TO LAY PEOPLE OFF.
% THAT IS THE OTHER DEVASTATING
% THING.
% EFFECT IS UNEVEN.
% EFFECTS SENIOR CITIZENS
% DEPENDING ON INVESTMENT INCOME.
% YOUNG PEOPLE FIRST ONES TO BE
% LAID OFF.
% IT IS NOT EVEN IN EFFECT THOSE
% PEOPLE ARE MIDDLE INCOME YOU
% KNOW, EDGE OF SOCIETY.
% THEY ALWAYS GET HURT THE WORST.
% >> THEN THERE IS THE SPECIFIC
% VERY INSTANT EFFECT, RIGHT OF
% PEOPLE POTENTIALLY NOT GETTING
% SOCIAL SECURITY CHECKS?
% >> OF COURSE.
% THAT IS NOT EVEN LOOKING AT
% THAT.
% IF IN FACT, THEY DO DEFAULT,
% THEN THE TREASURE SECRETARY HAS
% TO START TRIAGING AND MAKING
% DECISIONS IF YOU ARE GETTING
% SOCIAL SECURITY CHECKS OUT ON
% TIME.
% WHETHER OR NOT PEOPLE ARE JUST
% ABOUT TO QUALIFY FOR MEDICAID OR
% MEDICARE.
% OF COURSE LOTS TO HEAR ABOUT
% VETERANS AND THEIR BENEFITS.
% IT IS AN INCREDIBLE RIPPLE
% EFFECT.
% PART THAT IS SO SAD IT IS SO
% UNNECESSARY.
% THREE TIMES IN THE TRUMP
% ADMINISTRATION THEY DID THIS.
% I THINK OF IT AS A FAMILY.
% WHEN OUR CREDIT CARD BILL IS
% DUE, I AM NOT GOING TO PAY SO I
% PAY INTEREST IN PENALTIES.
% PAY YOUR BILLS WHEN THEY ARE DUE
% AND MAKE DECISIONS BUDGET
% PROCESS, APPROPRIATE SPENDING
% TAX RELIEF.
% ABSOLUTELY NO REASON WHY THEY
% NEED TO DO THIS AT THIS
% JUNCTURE.
% IT IS AT A VERY PERILOUS TIME.
% FEDS INCREASING INTEREST RATES.
% WE SAW FOR FISCAL BUREAU.
% SLIGHT DIP IN TERMS OF SURPLUS.
% YOU WORRY ABOUT TRAJECTORY.
% >> SO MOODY'S SAYS IT IS NOT
% LIKELY IT IS GOING TO HAPPEN.
% TREASURY SECRETARY JANET YELLEN
% SAYS HOLD ON PEOPLE, JUNE 1 IS
% THE DAY.
% SHE IS SOUNDING THE ALARM ON
% THIS.%>> RIGHT.
% >> WHAT DO YOU THINK?
% >> KNOWING WE DON'T WANT TO GET
% UP AGAINST THAT LAST DAY OR TWO
% IN CASE IT TAKES LONGER TO GET
% THE VOTES OR GOES SOUR.
% WE ARE PLAYING WITH FIRE.
% PLAYING WITH PEOPLE'S LIVES,
% ECONOMY, AND EFFECT ON SO MANY
% FAMILIES, I JUST HOPE TO
% GOODNESS THEY ARE ABLE TO DO
% SOMETHING IN THE NEXT WEEK.
% >> SPEAKING OF MCCARTHY AND HIS
% CAUCUS AND MEMBERS, IS IT WORSE
% NOW, THIS KIND OF UP TO THE
% BRINK?
% >> I THINK IT IS BECAUSE YOU
% KNOW, IN THE PAST, WHETHER
% DEMOCRAT, REPUBLICAN SPEAK OR
% MAJORITY LEADER IN THE SENATE,
% GENERALLY SPEAKING, MEMBERS
% TRUSTED LEADERS AND VOTE
% ACCORDINGLY TO WHATEVER VOTE IS
% REACHED.%WHEN MCCARTHY AGREED
TO BECOME
% PART OF THE -- HE HAS TO BE ALL
% THE MORE CAREFUL ABOUT WHAT DEAL
% HE STRIKES.
% I AM SURE HE MUST HAVE TO BE ON
% THE PHONE CONTINUALLY.
% >> HAVE WE SEEN ANY INDICATION
% YET BECAUSE WE ARE SO CLOSE TO
% THAT JUNE 1 DATE IN MARKETS OR
% ANYTHING LIKE THAT?
% >> OUR ECONOMISTS WATCHING THIS
% CLOSELY.
% WE ARE VERY NERVOUS OURSELVES.
% WE DO NOT WANT TO SEE AT A TIME
% WHEN WISCONSIN HAS NOT BEEN
% STRONG.
% WE DO HAVE AAA BOND RATING.
% LOWER NUMBER OF PEOPLE