>> WELCOME TO THIS
SPECIAL ELECTION EDITION
OF "IN WISCONSIN."
I'M PATTY LOEW.
IN 2008, IT'S ALL ABOUT THE
ECONOMY.
THE NUMBER ONE ISSUE IN THE
CAMPAIGN FOR THE WHITE HOUSE.
HEAR HOW, AS PRESIDENT,
JOHN MCCAIN OR BARACK OBAMA
WOULD GROW JOBS IN AMERICA,
AND SPECIFICALLY WISCONSIN.
WE'VE BEEN HIT BY MASS LAYOFFS
IN THE MIDST OF AN ECONOMIC
DOWNTURN.
WHAT ABOUT THE HIGH COST OF
HEALTHCARE?
WHAT WOULD THE CANDIDATES' PLANS
MEAN FOR YOU AND YOUR FAMILY?
AND BALANCING THE BOOKS,
WASHINGTON STYLE.
DOES TRIMMING THE DEFICIT
REQUIRE A SCALPEL OR A HATCHET?
THEN, BALANCING THE BOOKS
HOME STYLE.
FIND OUT HOW SOME WISCONSIN
FAMILIES ARE CUTTING COSTS AND
HOW THE CANDIDATES FOR PRESIDENT
WOULD HELP SHORE UP THE ECONOMY.
IT'S OUR "IN WISCONSIN"
ELECTION SPECIAL.
>> MAJOR FUNDING FOR
"IN WISCONSIN" IS PROVIDED BY
THE PEOPLE OF ALLIANT ENERGY,
WHO BRING SAFE, RELIABLE AND
ENVIRONMENTALLY FRIENDLY ENERGY
TO KEEP HOMES, NEIGHBORHOODS
AND LIFE IN WISCONSIN
RUNNING SMOOTHLY.
ALLIANT ENERGY, OFFERING
ENERGY-SAVING IDEAS ON THE WEB.
AND BY THE ANIMAL DENTAL CENTER
OF MILWAUKEE AND OSHKOSH.
A VETERINARY SPECIALIST WORKING
WITH PET OWNERS AND FAMILY
VETERINARIANS THROUGHOUT
WISCONSIN, PROVIDING CARE FOR
ORAL DISEASE AND DENTAL PROBLEMS
OF SMALL COMPANION ANIMALS.

>> IN THE NEXT HALF HOUR,
"IN WISCONSIN" REPORTERS
FREDERICA FREYBERG AND
ART HACKETT BRING YOU A SERIES
OF REPORTS THAT BREAK DOWN
WHAT DEMOCRAT BARACK OBAMA
AND REPUBLICAN JOHN MCCAIN
WOULD DO ON ISSUES OF JOBS,
HEALTHCARE, THE FEDERAL DEFICIT
AND THE HIGH COST OF LIVING.
ALONG THE WAY, ART AND FREDERICA
MET MANY WISCONSIN CITIZENS
STRUGGLING WITH THESE ISSUES.
>> TWO DAYS BEFORE CHRISTMAS.
THAT'S WHEN THE ASSEMBLY LINE
AT GENERAL MOTORS IN JANESVILLE
SHUTS DOWN FOR GOOD,
PUTTING MORE THAN 2,500 WORKERS
OUT OF A JOB.
THE AUTO INDUSTRY HAS TAKEN THE
HIT MOST RECENTLY, BUT LAYOFFS
IN MANUFACTURING OF ALL SORTS
HAVE BECOME PART OF WISCONSIN'S
ECONOMIC LANDSCAPE OVER THE LAST
SEVERAL YEARS.
100,000 SUCH JOBS LOST SINCE THE
YEAR 2000.
THE QUESTION IS WHAT THE
CANDIDATES FOR PRESIDENT WOULD
DO ABOUT IT BECAUSE IT'S NOT
EXPECTED TO GET BETTER BEFORE IT
GETS WORSE.
FOR EXAMPLE, WISCONSIN'S ONCE
MIGHTY PAPER INDUSTRY IS
CONTRACTING LIKE A SWEATER
IN THE DRYER.
IN THE LAST DECADE, 11 MILLS
HAVE CLOSED OR CONSOLIDATED.
THREE IN THE LAST YEAR.
WITH THE CLOSURES, THE LOSS OF
NEARLY 17,000 JOBS.
>> EVERYBODY HAD ANTICIPATED
MAYBE A MACHINE SHUTTING DOWN OR
A DEPARTMENT SHUTTING DOWN
AND WHEN THEY CAME OUT WITH
THE WHOLE MILL SHUTTING DOWN,
IT WAS A BIG SURPRISE,
I BELIEVE, TO EVERYBODY.
>> KURT HEINEN'S SURPRISE CAME
CHRISTMAS-TIME LAST YEAR WHEN
THIS PORT EDWARDS PAPER MILL
ANNOUNCED IT WOULD CLOSE,
TAKING 500 JOBS WITH IT.
MY UNEMPLOYMENT INSURANCE
IS LESS THAN HALF OF WHAT I WAS
MAKING EVERY MONTH,
SO IT'S TOUGH.
YOU'VE GOT TO MAKE A LOT OF CUTS
AND YOU HAVE TO SACRIFICE
FOR A COUPLE YEARS.
>> TOUGH TIMES PERHAPS LIKE
NONE THIS GENERATION HAS SEEN
CALL FOR NEW IDEAS, ACCORDING
TO WISCONSIN'S FORMER
STATE ECONOMIST.
>> IT'S TROUBLING TO ME,
PARTICULARLY AS A GRANDFATHER,
AND AS A FATHER OF CHILDREN.
I HATE TO SAY THIS, BUT
I MAY HAVE LIVED THROUGH
THE GOLDEN AGE OF WISCONSIN
UNLESS WE DO SOMETHING ELSE
ENTIRELY DIFFERENT.
>> NOW FOR THAT SOMETHING
ENTIRELY DIFFERENT, FROM
MID-STATE TECHNICAL COLLEGE.
>> THIS IS, PROBABLY OUT
OF THESE IS PROBABLY
THE WEAKEST, BUT IT'S...
>> MID-STATE TECH IS
IN WISCONSIN RAPIDS, A CITY
SYNONYMOUS WITH MAKING PAPER.
A CITY WHOSE LARGEST EMPLOYERS
ARE PAPER MILLS, LIKE NEW PAGE
CORPORATION, WHICH OWNS SIX
PAPER PLANTS ACROSS THE STATE
AND CUT MORE THAN 900 JOBS
JUST THIS YEAR.
>> RIGHT HERE IN WOOD COUNTY,
YOU KNOW WE'VE LOST THOUSANDS
OF JOBS AT THE PAPER MILLS.
AND OUR CONCERN AS A COLLEGE,
AND WITHIN KIND OF OUR
ENVIRONMENTAL GROUP HERE
IS LET'S MAKE CERTAIN
WE'RE HELPING THEM RE-TOOL
IN SOMETHING THAT'S GOING
TO BE HERE INDEFINITELY.
>> AND THAT BLACK SURFACE
IS GOING TO BE ABLE TO ABSORB
THAT SOLAR RADIATION...
>> AND SO, THIS PAST FALL,
MID-STATE STARTED WISCONSIN'S
FIRST TWO-YEAR TECHNICAL
DEGREE PROGRAM
IN RENEWABLE ENERGY.
>> WE'RE NOT TRAINING
BIO-REFINERY PEOPLE TO MAKE
BIO-DIESEL IN THEIR GARAGE,
WE'RE TRAINING THEM TO MAKE
MILLIONS OF GALLONS OF BIOFUELS
AT A PRODUCTION FACILITY.
THE BOTTOM LINE IS IT'S GOING
TO BE DIFFICULT FOR US
TO PRODUCE FUELS
FROM A PRIMARY COMMODITY, SO
IF WE CAN FOCUS ON SWITCHGRASS,
AND CELLULOSE, AND THE PARTS
OF THE TREE WE DON'T MAKE INTO
BOARDS OR PAPER, AND THAT TYPE
OF THING, THAT REALLY WILL BE
AN ENORMOUS SOURCE FOR US.
>> FOCUSING ON RENEWABLES,
STUDENTS NOW ENROLLED AT
MID-STATE INCLUDE SEVERAL
PAPER MILL WORKERS
WHO LOST THEIR JOBS.
WHERE DID IT LEAVE YOU?
>> CONFUSED AT FIRST, NOT SURE
AS TO WHAT I WANTED TO DO,
GET A JOB, GO ON TO SCHOOL.
>> BUT WHEN JIM LINZSMEIRER,
AND OTHERS LIKE HIM, LEARNED
ABOUT THE NEW PROGRAM TRAINING
FOR GREEN INDUSTRY JOBS,
HE SIGNED UP FOR CLASS.
>> WE'RE LOOKING AT THE
POSSIBILITY OF BETWEEN
35,000 AND 50,000 NEW JOBS
BEING CREATED OVER THE NEXT
THREE TO FIVE YEARS IN WISCONSIN
IN THE GREEN INDUSTRY.
>> FOR JOB CREATION AND
STABILIZATION, THE CANDIDATES
FOR PRESIDENT ALSO FAVOR
GREEN INDUSTRY JOBS.
DEMOCRATIC CANDIDATE BARACK
OBAMA WITH MORE SPECIFICITY
THAN REPUBLICAN JOHN MCCAIN.
OBAMA SAYS HE WOULD INVEST
$150 BILLION OVER TEN YEARS
TO ADVANCE BIOFUELS, HYBRID CAR
ENGINES AND RENEWABLE ENERGY.
HE SAYS HE WOULD DEVELOP AND
DEPLOY CLEAN COAL TECHNOLOGY,
AND SAYS HE WOULD INVEST
IN GREEN TECHNOLOGY TRAINING
FOR THE MANUFACTURING
WORKFORCE.
JOHN MCCAIN SAYS HE WOULD COMMIT
$2 BILLION TO ADVANCING
CLEAN COAL TECHNOLOGIES,
AND WANTS TO BUILD 45 NEW
NUCLEAR POWER PLANTS.
HE WOULD PUT IN PLACE
UNSPECIFIED PERMANENT
TAX CREDITS TO PROMOTE WIND,
HYDRO, AND SOLAR POWER,
AND WOULD ENCOURAGE
BATTERY OPERATED VEHICLES.
ECONOMIC EXPERT TERRY LUDEMAN
SAYS GREEN IS GOOD,
BUT NOT GOLDEN.
>> WE'RE NOT GOING TO ALL WORK
IN BIOFUEL, WE'RE NOT GOING TO
ALL WORK IN GREEN INDUSTRIES.
>> WHAT LUDEMAN DOES SEE AS KEY
IS TRADE POLICY, BELIEVING
ENVIRONMENTAL AND LABOR
STANDARDS WITH OUR TRADING
PARTNERS MUST BE HELD
TO A HIGHER STANDARD.
FOR ITS PART, THE PAPER INDUSTRY
IN WISCONSIN HAS CITED
LOW PRICED IMPORTED PAPER
FROM CHINA AS ONE REASON
FOR PLANT CLOSINGS.
>> AND THEY'RE SHIPPING
ALL OF OUR JOBS OVERSEAS, AND
THERE IS NO WAY TO STOP IT.
>> THAT'S HOW MANY WORKERS
SEE IT.
THE CANDIDATES FOR PRESIDENT
SEE TRADE AND JOB PROTECTION
THIS WAY.
JOHN MCCAIN IS A FULL-OUT
FREE TRADE ADVOCATE, AND WOULD
REDUCE THE FEDERAL CORPORATE TAX
10% TO 25% TO SPUR JOB GROWTH.
BARACK OBAMA WOULD RE-OPEN
A NORTH AMERICAN FREE TRADE
AGREEMENT TO TOUGHEN ENFORCEMENT
OF ENVIRONMENTAL
AND LABOR STANDARDS,
AND SAYS HE WOULD ALSO CLOSE
TAX LOOPHOLES FOR COMPANIES
THAT SHIP JOBS OVERSEAS.
AS FOR IMMEDIATE HELP TO
DISPLACED AND JOBLESS WORKERS,
BOTH JOHN MCCAIN AND BARACK
OBAMA WOULD SUSPEND THE TAX
ON UNEMPLOYMENT BENEFITS, AND
OBAMA WOULD EXTEND THE BENEFITS.
>> AND THEN THE AIR PASSES
THROUGH, IT'LL IT THIS DIVERTER,
IT WILL FLOW AROUND HERE...
>> THE VERY PEOPLE IN NEED
OF THAT EXTRA HELP, BECAUSE
THEY LOST THEIR JOBS,
WISH THEY WEREN'T IN THAT BOAT,
BUT SOME ARE WORKING
TO MAKE A LASTING CHANGE,
A SWITCH TO GREEN.
>> DO YOU FEEL AS THOUGH
THIS IS GOING TO BE AN INDUSTRY
THAT WILL AFFORD YOU
MORE SECURITY?
>> YES.
>> MORE SECURITY, NEW JOBS,
THINGS NO ONE COULD DISPUTE
THAT WISCONSIN, WITH ITS ERODING
MANUFACTURING BASE,
COULD USE MORE OF.

>> MOST MORNINGS, 32-YEAR-OLD
CHAD PHELPS CAN BE FOUND
AT A USED CAR DEALERSHIP
IN PRAIRIE DU CHIEN.
>> I'M KIND OF
A JACK OF ALL TRADES.
I DO DETAILING, AND SALES,
AND LIGHT MECHANIC WORK HERE.
>> AFTER CHAD PHELPS FINISHES
HIS JOB AT THE USED CAR LOT,
HE PUTS IN A FIVE-HOUR SHIFT
AT HIS SECOND JOB.
THAT ONE'S AT PRAIRIE DU CHIEN'S
RADIO STATION.
YET NEITHER THE RADIO JOB
NOR A THIRD WEEKEND JOB AS
A DISC JOCKEY AT A NIGHTCLUB
PROVIDE HEALTH INSURANCE.
PHELPS HASN'T HAD HEALTH
INSURANCE FOR OVER FOUR YEARS.
>> THE JOBS I'VE CHOSEN TO HAVE
JUST DON'T HAVE THAT OPTION
FOR THEIR EMPLOYEES.
WITH MY GIRLFRIEND
AND OUR TWO KIDS BEING--
THEY'RE ALL ON BADGERCARE.
SO I MEAN, I GUESS, I KNOW THAT
THEY'RE COVERED, SO IT'S REALLY
MORE AS LONG AS THEY'RE OKAY,
I GUESS I DON'T--
I'LL JUST KIND OF TOUGH OUT
MY COLDS, AND STUFF.
>> WHEN WAS THE LAST TIME
YOU HAD HEALTH INSURANCE?
>> I WOULD SAY PROBABLY ABOUT
FOUR OR FIVE YEARS AGO.
I WORKED AT THE WAL-MART
SUPERCENTER HERE IN TOWN,
AND HAD HEALTH INSURANCE
THROUGH THEM.
>> CHAD PHELPS IS ONE
OF ABOUT HALF A MILLION
WISCONSIN RESIDENTS,
AND NEARLY 46 MILLION
IN THE UNITED STATES
WHO LACK HEALTH INSURANCE.
IT'S NO SURPRISE
THAT THIS ISSUE COMES UP
DURING PRESIDENTIAL DEBATES.
>> WE HAVE A MORAL COMMITMENT,
AS WELL AS AN ECONOMIC
IMPERATIVE, TO DO SOMETHING
ABOUT THE HEALTHCARE CRISIS THAT
SO MANY FAMILIES ARE FACING.
>> AS YOU NOTICED, HE STARTS
TALKING ABOUT GOVERNMENT.
HE TALKS ABOUT GOVERNMENT
WILL DO THIS, AND GOVERNMENT
WILL DO THAT,
AND THEN GOVERNMENT WILL.
AND HE'LL IMPOSE MANDATES.
>> WHAT MAY BE A SURPRISE
TO SOME PEOPLE IS THAT ACCORDING
TO THE U.S. CENSUS BUREAU,
PEOPLE IN CHAD'S AGE GROUP,
PEOPLE AGE 18 TO 35, ARE MOST
LIKELY TO LACK HEALTH INSURANCE.
>> I WOULDN'T BE SURPRISED
IF MOST OF THE PEOPLE MY AGE
IN PRAIRIE DU CHIEN.
>> ONE, THESE ARE A LOT OF FOLKS
WHO ARE OUT OF HIGH SCHOOL.
THEY'RE NO LONGER DEPENDENTS
LIVING WITH THEIR PARENTS.
THEY'RE IN LOWER PAYING JOBS,
WHICH DON'T OFFER INSURANCE.
>> LINDA REIVITZ IS WELL AWARE
OF THE INSURANCE PROBLEMS FACED
BY PEOPLE IN THIS AGE GROUP.
SHE'S A FORMER WISCONSIN
SECRETARY OF HEALTH AND SOCIAL
SERVICES.
REIVITZ IS NOW A LECTURER
IN HEALTH POLICY STUDIES
AT THE UNIVERSITY OF WISCONSIN'S
SCHOOL OF NURSING.
>> I THINK THERE'S A MIND SET.
THAT IS, A LOT OF YOUNG PEOPLE
ARE HEALTHY.
THEY DON'T SEE THE NEED
FOR INSURANCE.
THEY DON'T HAVE A LOT
OF DISPOSABLE INCOME.
AND THEY SAY TO THEMSELVES,
I DON'T WANT TO PAY
$200 OR $300 A MONTH.
>> PHELPS HAS BEEN PAYING
FOR WHAT LITTLE MEDICAL CARE
HE'S NEEDED OUT OF HIS POCKET.
HE'S FACED NO MEDICAL ISSUES,
UNTIL THAT IS, A FEW WEEKS AGO
WHEN HE DISCOVERED AN UNUSUAL
MASS IN HIS GROIN AREA.
>> I WAS TAKING A BATH GETTING
READY FOR WORK, AND I WAS LIKE,
"OH, THAT'S NOT
SUPPOSED TO BE THERE."
I'VE NEVER REALLY HAD
ANY KIND OF BROKEN BONES.
I'VE NEVER BEEN IN ACCIDENTS.
UP UNTIL THIS POINT, I THINK
I'VE BEEN VERY, VERY,
VERY LUCKY.
THIS IS BY FAR, KIND OF
THE SCARIEST MEDICAL THING
I'VE GONE THROUGH.
>> HERE'S WHAT THE TWO MAJOR
PARTY PRESIDENTIAL CANDIDATES
ARE PROPOSING TO HELP PEOPLE
LIKE CHAD PHELPS.
REPUBLICAN CANDIDATE JOHN MCCAIN
PROPOSES REFUNDABLE TAX CREDITS
OF $2,500 FOR A SINGLE TAXPAYER,
OR $5,000 FOR A MARRIED COUPLE.
THOSE CREDITS COULD BE USED
TO PURCHASE HEALTH INSURANCE.
BUT WORKERS WHOSE HEALTH
COVERAGE IS PROVIDED BY THEIR
EMPLOYER WOULD SEE THE VALUE
OF THEIR BENEFITS
COUNTED AS TAXABLE INCOME.
THE WORKER MIGHT BE ON THE HOOK
FOR ADDITIONAL INCOME TAX.
MCCAIN WOULD ALSO ALLOW
INSURANCE COMPANIES TO SELL
POLICIES ACROSS STATE LINES
TO ENCOURAGE COMPETITION.
>> IF YOU ASSUME THE YOUNG
PERSON IS ONLY PAYING
A FEW HUNDRED DOLLARS A MONTH,
FOR EXAMPLE, FOR INSURANCE,
THEN THAT PERSON
IS GOING TO COME OUT OKAY.
IF THEY HAVE A PRE-EXISTING
CONDITION, IT'S VERY POSSIBLE
THAT THEY WILL NOT BE ABLE
TO GET A POLICY IN WHAT'S CALLED
THE INDIVIDUAL MARKET.
NO ONE WILL SELL IT TO THEM.
SENATOR MCCAIN HAS SAID
WHAT I WANT TO DO IS CREATE
WHAT HE CALLS THE GAP,
A GUARANTEED ACCESS PLAN,
WHICH IS, IN WISCONSIN, VERY
SIMILAR TO THE HIGH RISK POOL,
AND I WANT TO HELP YOU
FIND INSURANCE.
BUT AGAIN, IT'S LIKELY
TO BE QUITE COSTLY.
>> SINCE PHELPS' JOBS PROVIDE
NO INSURANCE, HE WOULD FACE
NO ADDITIONAL INCOME TAX.
LOWER WAGE WORKERS SUCH AS HE
WOULD GAIN THE MAXIMUM BENEFIT
FROM MCCAIN'S PLAN.
PHELPS SAYS THAT AS LONG
AS HE COULD FIND A PLAN
FOR THE AMOUNT OF THE CREDIT,
THAT WOULD BE OKAY.
>> SINCE IT'S A CREDIT,
THAT HELPS A LOT, ESPECIALLY
WITH THE ECONOMY.
I'M RUNNING PAYCHECK
TO PAYCHECK,
PAYING THE BILLS AND SUCH.
IF SOMETHING WERE TO HAPPEN
AND IT'S THERE FOR ME TO USE,
THEN BY ALL MEANS
I WOULD USE IT.
>> DEMOCRATIC CANDIDATE BARACK
OBAMA'S INSURANCE PROPOSAL WOULD
SET UP AN INSURANCE EXCHANGE,
WHICH WOULD OFFER COMPANIES
AND INDIVIDUALS A VARIETY
OF INSURANCE OPTIONS.
PEOPLE WOULD BE GUARANTEED
COVERAGE REGARDLESS
OF PRE-EXISTING CONDITIONS.
>> BARACK OBAMA HAS MORE PIECES
TO HIS PLAN.
SO IF, FOR EXAMPLE, IF IT WERE
A LOWER INCOME INDIVIDUAL,
YOUNG, OLD, BUT IF IT WERE
LOWER INCOME INDIVIDUAL,
THAT PERSON, FOR EXAMPLE,
MIGHT BE ELIGIBLE FOR
A PUBLIC PROGRAM,
SHIP, MEDICAID AND SO FORTH.
AFTER THAT, WHAT SENATOR OBAMA
DOES IS TO CREATE A NATIONAL
PLAN, THAT EITHER BUSINESSES OR
PEOPLE WHO CAN'T GET INSURANCE
THROUGH THEIR EMPLOYER
HAVE THE OPTION OF PURCHASING.
>> PHELPS SAYS AVAILABILITY
OF INSURANCE ISN'T WHAT'S CAUSED
PROBLEMS FOR HIS EMPLOYERS.
IT'S BEEN THE COST.
>> AS A SMALL BUSINESS OWNER,
YOU ONLY MAKE SO MUCH, YOU KNOW.
WE ONLY HAVE SO MANY VEHICLES.
WE ONLY MAKE A LITTLE BIT
ON EACH VEHICLE.
IF HE WAS TO CARRY
HEALTH INSURANCE ON ALL OF US,
HE WOULD
PROBABLY MAKE NO PROFIT.
>> OBAMA'S PLAN REQUIRES
EMPLOYERS TO EITHER PROVIDE
HEALTH COVERAGE, OR PAY INTO
A FUND WHICH WOULD OFFSET
THE COSTS OF A PUBLICLY OPERATED
PLAN.
SMALL BUSINESSES, LIKE
CHAD PHELPS' EMPLOYERS WOULD BE
EXEMPT FROM THIS REQUIREMENT.
THEY WOULD BE ELIGIBLE FOR
A TAX CREDIT TO COVER HALF
OF THE COST OF THEIR COMPANY'S
INSURANCE PREMIUMS.
OBAMA WOULD ALSO PROVIDE
SUBSIDIES TO BUSINESS TO OFFSET
CATASTROPHIC HEALTHCARE COSTS.
WHICHEVER CANDIDATE'S PLAN MAY
BECOME LAW, IT WILL BE TOO LATE
TO HELP CHAD PHELPS
WITH HIS CURRENT PROBLEM.
PHELPS FIRST SOUGHT CARE
AT A FREE CLINIC IN BOSCOBEL.
"IN WISCONSIN" PROFILED
THAT FACILITY LAST WINTER.
THE DAY AFTER WE INTERVIEWED
PHELPS, HE, HIS GIRLFRIEND
AND THEIR 10-MONTH-OLD SON
WERE AT YET ANOTHER FREE CLINIC
IN THE MADISON SUBURB
OF MIDDLETON.
THERE, PHELPS GOT GOOD NEWS.
>> NOTHING TO WORRY ABOUT,
WHATSOEVER.
IT'S NOT, YOU KNOW, LIKE I WAS
SAYING, IT'S NOT ANYWHERE
OR ATTACHED TO ANYTHING
THAT WOULD BE LIKE CANCEROUS
OR ANYTHING LIKE THAT.
>> SO THIS SOLVES
YOUR MEDICAL PROBLEMS.
IT STILL DOESN'T SOLVE
YOUR INSURANCE PROBLEMS.
>> YES, THAT'S DEFINITELY
AN ISSUE.
THE FREE CLINICS ARE A GODSEND
WHEN IT COMES TO MEDICAL ISSUES,
BUT I DON'T HAVE INSURANCE
IN CASE I GET IN AN ACCIDENT,
OR SOMETHING.

>> THE DAY AFTER THE FINAL
PRESIDENTIAL DEBATE,
THESE STUDENTS
IN PROFESSOR LILLY GOREN'S
POLITICAL SCIENCE CLASS
SAT DOWN TO ATTEMPT A TASK
WHICH SEEMS AT TIMES, TO BEDEVIL
PRESIDENTIAL CANDIDATES.
IN AN EXERCISE WHICH IS PART
OF THE CURRICULUM, EVEN IN
NON-ELECTION YEARS, THE STUDENTS
ARE GOING TO HAVE TO TRY
AND COME UP WITH A BALANCED
FEDERAL BUDGET.
>> FIRST THING YOU HAVE TO DO
IS DECIDE AS A GROUP WHAT YOUR
PRIORITIES ARE GOING TO BE.
>> THE EXERCISE IS PREPARED
BY A NON-PARTISAN COALITION,
WITH THE GOAL OF MAKING PEOPLE
AWARE OF THE SIZE
OF THE FEDERAL BUDGET DEFICIT.
>> DO YOU WANT TO CUT IT?
DO YOU WANT TO KEEP IT
WHERE IT IS?
OR DO YOU WANT TO POTENTIALLY
INCREASE IT, BY SPENDING
ON THINGS YOU THINK WE NEED
TO SPEND MORE MONEY ON?
>> I DO TRY TO AT LEAST IMPRESS
UPON THE STUDENTS WHO ARE,
GENERALLY SPEAKING, 18 TO 24
YEARS OLD, THAT THEY ARE GOING
TO BE MORE RESPONSIBLE FOR
THE DEFICITS THAN PROBABLY I AM.
>> THE STUDENTS ARE GIVEN
A LIST OF OPTIONS FOR
TAX INCREASES AND SPENDING CUTS,
ALONG WITH INFORMATION
ON THE VARIOUS PROGRAMS.
>> END SPACE SHUTTLE PROGRAM
AND ASSEMBLY OF INTERNATIONAL
SPACE STATION?
>> I THINK WE CAN KEEP IT.
>> IN THE PRESIDENTIAL DEBATES
THE CANDIDATES GET PUT THROUGH
A SURPRISINGLY SIMILAR EXERCISE,
WITH ONE DIFFERENCE,
PRESIDENTIAL CANDIDATES CAN
TRY AND BLOW OFF THE QUESTION.
>> GIVE US SOME SPECIFICS ON
WHAT YOU'RE GOING TO CUT BACK.
SENATOR OBAMA.
>> BARACK OBAMA AND JOHN MCCAIN
DISAGREE ON A LOT OF THINGS,
BUT ONE OF THE THINGS
THEY APPEARED TO HAVE IN COMMON
AT THE DEBATE WAS A RELUCTANCE
TO OFFER SPECIFIC CUTS
TO REDUCE THE DEFICIT.
>> OKAY, ENERGY.
SECOND OF ALL,
ENERGY INDEPENDENCE.
WE HAVE TO HAVE NUCLEAR POWER.
>> EVENTUALLY, MCCAIN OFFERED UP
CUTS TOTALING $8 BILLION.
DURING THE DEBATE,
OBAMA MENTIONED $15 BILLION
IN SAVINGS.
BUT THE DEFICIT IS WAY BIGGER
THAN $8 BILLION
OR EVEN $15 BILLION.
>> HOW BAD IS IT?
>> TERRIBLE.
>> BILL DUDDLESTON TEACHES
ECONOMICS AT MADISON'S
EDGEWOOD COLLEGE.
>> NEXT YEAR'S BUDGET IS
AT LEAST $500 BILLION,
SOME PEOPLE ARE SAYING AS MUCH
AS $750 BILLION.
AND ADDING THE BAILOUT,
YOU'RE GETTING CLOSE TO
A TRILLION DOLLARS IN REAL MONEY
FOR 2009.
>> DUDDLESTON SAYS COPING
WITH THAT DEFICIT WILL MEAN
LURING CASH FROM OVERSEAS
INVESTORS.
>> WE DON'T HAVE ENOUGH SAVINGS
DOMESTICALLY.
WE HAVE TO LURE PEOPLE IN
WITH HIGHER INTEREST RATES.
>> THIS AFFECTS U.S. CITIZENS
IN MANY WAYS.
FOR EXAMPLE, THE U.S. GOVERNMENT
WILL IN EFFECT BE TRYING
TO BORROW THE SAME MONEY
YOU MAY BE SEEKING
FOR A CAR LOAN OR MORTGAGE.
>> THAT'S THE OLD THEORY
OF CROWDING OUT.
CROWDING OUT IS NOT TALKED ABOUT
AS MUCH, BECAUSE WE'VE BEEN ABLE
TO PULL MONEY IN FROM ABROAD,
AND THAT'S BEEN SAVING US
OVER THE LAST FEW YEARS.
WE'VE BEEN LIVING
ON THE KINDNESS OF STRANGERS.
BUT THAT MAY COME AT A HIGHER
PRICE, GIVEN THE CRISIS
AND GIVEN THE FACT THAT
EVERYBODY IS NOW WANTING
TO BORROW MONEY.
>> THAT DRIVES UP THE COST
OF BORROWING.
GOREN'S STUDENTS
UNDERSTAND IT'S A PROBLEM.
BUT PERHAPS AREN'T AS CONCERNED
ABOUT IT AS PROFESSORS.
>> IT BOTHERS ME, BUT IT
DOESN'T DIRECTLY AFFECT ME,
SO IT DOESN'T BOTHER ME AS MUCH
AS IF I WAS PAYING TAXES.
>> WHAT CONCERNS ME,
IS THAT BEFORE WE WERE
RUNNING A DEFICIT, WHEN WE WERE
IN AN ECONOMIC BOOM TIME,
THAT WE SHOULD HAVE BEEN
PLANNING FOR THIS, AND THAT
WE SHOULD HAVE KEPT WITH THE
SURPLUS WE HAD PRIOR TO 2001.
>> CARROLL UNIVERSITY POLITICAL
SCIENTIST GOREN SAYS RUNNING
A DEFICIT CREATES PROBLEMS
WITH EVERYTHING THE FEDERAL
GOVERNMENT NEEDS TO DO.
>> IT LIMITS OUR ABILITY TO
POTENTIALLY PROPEL OUR MILITARY,
OR USE THE MILITARY.
IT LIMITS THE GOVERNMENT'S
ABILITY TO POTENTIALLY
FUND HEALTH ISSUES, HEALTHCARE,
WHICH IS ONE OF THE GROWING
COSTS, CERTAINLY.
ESSENTIALLY HAVING A DEFICIT
STRAPS THE GOVERNMENT
OF SOME OF ITS AGILITY.
>> BARACK OBAMA'S PLAN
FOR DEALING WITH THE DEFICIT
INCLUDES A PAY-AS-YOU-GO RULE,
SO NEW SPENDING
HAS TO BE BALANCED
BY A CUT OF AN EXISTING PROGRAM,
OR A TAX INCREASE.
INCREASED BUDGETING TRANSPARENCY
TO REIGN IN SO-CALLED
PORK BARREL SPENDING.
CHANGES IN THE TAX CODE TO LIMIT
USE OF OVERSEAS TAX HAVENS,
AND ENDING THE 2001 TAX CUTS
ON PEOPLE EARNING
OVER $250,000 A YEAR.
BUT OBAMA ALSO CALLS FOR
CONSIDERABLE NEW SPENDING,
ON EVERYTHING FROM THE NATION'S
HIGHWAYS AND BRIDGES,
TO HEALTHCARE,
TO THE ELECTRICAL GRID.
>> I WILL ADD, THAT IF WE HAVE
A SERIOUS RECESSION IN 2009,
IT WOULD BE THE WORST THING
TO CUT INFRASTRUCTURE SPENDING.
IT WOULD BE THE WORST THING
TO CUT HEALTHCARE SPENDING.
THAT WOULD EXACERBATE
THE RECESSIONARY FORCES.
>> JOHN MCCAIN'S PLAN CALLS FOR
BALANCING THE BUDGET
BY THE END OF HIS FIRST TERM.
HE CALLS FOR
A LOWERING CORPORATE TAXES
TO PROMOTE GROWTH.
HE WANTS A ONE-YEAR
SPENDING FREEZE ON PROGRAMS
EXCEPT FOR DEFENSE ACTIVITY,
VETERANS AFFAIRS,
AND ENTITLEMENT PROGRAMS
SUCH AS MEDICARE.
>> THAT'S IGNORING THE BULK
OF THE DIRECT FEDERAL SPENDING.
IT'S GOING TO BE VERY DIFFICULT
TO FREEZE ENTITLEMENTS
LIKE SOCIAL SECURITY,
AND THOSE KINDS OF THINGS.
THAT'S MANDATED IN
BY COST OF LIVING ALLOWANCES.
DIFFICULT TO DO.
HE'S BASICALLY SAYING, WELL,
THE BIGGEST PROJECT,
WHICH IS DEFENSE,
WE'RE NOT GOING TO TOUCH.
I THINK IT'S UNREALISTIC.
>> AS THE EXERCISE AT CARROLL
UNIVERSITY DREW TO A CLOSE,
STUDENTS CAME TO THE FRONT
OF THE CLASS TO SHOW WHAT THE
CUMULATIVE DEFICITS
OVER THE NEXT TEN YEARS WOULD BE
AFTER THEIR PROPOSED CHANGES
IN TAXING AND SPENDING.
SO BOB SCHIEFFER,
LET'S TRY THAT QUESTION AGAIN.
>> GIVE US SOME SPECIFICS ON
WHAT YOU'RE GOING TO CUT BACK.
>> WE CANCELED THE FUTURE
COMBAT SYSTEM PROGRAM, BECAUSE
WE BELIEVED THAT
WHAT WE HAVE NOW IS WORKING.
>> WE GOT RID OF THE MARITIME
PROPOSITION SHIPS.
IT SAVED US $14 BILLION.
>> IN SPITE OF MAKING CUTS,
SEVERAL OF THE WORK GROUPS
STILL WOUND UP WITH A PROJECTED
DEFICIT OVER THE NEXT TEN YEARS.
TONY NELSON'S GROUP WOUND UP
WITH A $330 BILLION SURPLUS
BY RAISING TAXES.
BILL DUDDLESTON SAYS PAST
EFFORTS HAVE SHOWN IT TAKES A
SLOW BUT PERSISTENT COMBINATION
OF SPENDING CUTS
AND TAX INCREASES
TO ELIMINATE THE DEFICIT.
>> THE SOLUTION IN THE 1990s
WAS A BRILLIANT COMPROMISE,
WHICH WAS TO SLOW DOWN
THE GROWTH RATE OF SPENDING
BELOW THE RATE OF INFLATION,
AND TO INCREMENTALLY
RAISE TAXES, WHERE IT DOESN'T
HAVE MUCH OF AN IMPACT
ON INCENTIVES.
>> BUT AS DUDDLESTON SAID,
IT WILL TAKE TIME.
CARROLL STUDENT J.T. PETERSON
HOPES THE NEXT PRESIDENT
WILL START WORK ON THE PROBLEM
AS SOON AS HE TAKES OFFICE.
>> ONCE WE GET OUT OF THE
ECONOMIC CRISIS WE'RE IN NOW,
WE NEED TO DO WHAT TONY SAYS
AND GET A PLAN GOING
TO REDUCE THE DEFICIT, PAY BACK
SOME OF THAT DEBT, ESPECIALLY
SINCE WE'RE BORROWING SO MUCH
MONEY FROM DIFFERENT COUNTRIES
LIKE JAPAN AND CHINA.
WE NEED TO STOP DOING THAT
AND WORRY ABOUT OUR OWN COUNTRY.

>> IT'S NEVER EASY TO DO CHORES
LIKE GROCERY SHOPPING WITH THE
LITTLE ONES IN TOW, BUT THESE
DAYS, JEFFERSON COUNTY MOM
KELLY GROELER SPENDS EVEN MORE
TIME IN THE AISLES.
>> I READ THE PRICES
ON EVERYTHING NOW.
I NEVER USED TO WORRY ABOUT IT,
BUT NOW YOU HAVE TO.
I MEAN, A COUPLE OF CENTS
HERE AND THERE.
>> IT'S HARD NOT TO NOTICE THE
BIGGER NUMBERS AT THE CHECKOUT.
THE HIGH COST OF THINGS IS
ONE REASON THE ECONOMY
HAS EMERGED AS THE ISSUE
IN THIS PRESIDENTIAL ELECTION.
THE WISCONSIN FARM BUREAU SURVEY
SHOWED THAT IN THE LAST YEAR,
FOOD PRICES HAVE INCREASED
NEARLY 7.5%.
INCREASES WAY OUTPACING AVERAGE
HIKES IN PEOPLE'S PAYCHECKS.
UW-EXTENSION FAMILY LIVING
AGENTS ARE SEEING IT.
>> THIS IS PROBABLY AS TOUGH
AS IT'S BEEN IN THE LAST TEN
OR 12 YEARS FOR MOST FAMILIES.
>> IT'S $3.71 HERE.
I SAW A KWIK TRIP
THAT WAS $3.82.
>> FOR KELLY GROELER,
COST COMPARISONS DON'T END
AT THE GROCERY STORE.
GAS PRICES BEAR SCRUTINY, TOO.
IN WISCONSIN, THEY ARE UP 22%
IN THE LAST YEAR.
>> I'LL BE RIGHT BACK.
>> CAN YOU GET US A TREAT?
>> WE'LL SEE.
>> LIKE IN MANY FAMILIES
IN JEFFERSON COUNTY, GROELER'S
HUSBAND COMMUTES ABOUT AN HOUR
TO WORK.
THE FAMILY TRADED HIS DIESEL
TRUCK FOR A MINIVAN,
BECAUSE OF THE HIGH COST.
>> THE COMBINATION OF JUST
A COUPLE OF CHANGES IN
THE FIXED COSTS, ALONG WITH
ALL OF THE OTHER FIXED COSTS
THAT FAMILIES HAVE, MAKES IT
VERY DIFFICULT FOR THEM TO HAVE
ANY KIND OF WIGGLE ROOM.
>> AND WIGGLE ROOM
WAS ALREADY GETTING TIGHT.
MEDIAN FAMILY INCOMES IN
WISCONSIN HAVE DROPPED NEARLY
$6,000 SINCE THE YEAR 2000,
THREE TIMES THE NATIONAL DROP
ACCORDING TO ACADEMIC SURVEYS.
AND IT JUST KEEPS COMING.
>> WHEN WE WERE IN THE PROCESS
OF TRYING TO SELL OUR HOUSE,
THAT WAS VERY SCARY.
>> THE GROELERS BOUGHT AND SOLD
A HOUSE IN THE LAST YEAR.
IT TOOK MONTHS TO SELL,
AND THEY TOOK A LOWER PRICE.
ANOTHER PRONG OF THE WEAKENED
ECONOMY, AND HOW IT HITS HOME.
LITERALLY.
>> WE DON'T REALLY GO ANYWHERE.
WE STAY AT HOME.
WE HAVE A CAMPER.
WE DIDN'T GO ANYWHERE WITH IT
THIS SUMMER, JUST BECAUSE
THE PRICES WERE SO OUTRAGEOUS.
>> THEY'RE PROBABLY CUTTING BACK
ON THINGS THEY WOULDN'T HAVE
CUT BACK ON A YEAR OR TWO AGO.
WE'VE HEARD THAT "STAY-CATION."
PEOPLE ARE LOOKING AT
DIFFERENT WAYS OF MEETING THEIR
FAMILIES' NEEDS, AND MEETING
THEIR FAMILIES' BUDGET,
WITHIN A PRETTY TIGHT SCOPE.
>> I THINK WE'RE ON A SLIGHT,
A LITTLE FASTER DECLINE,
IF YOU WILL,
THAN THE UNITED STATES IS.
I'M NOT REAL OPTIMISTIC
ABOUT THE UNITED STATES
OVER THE NEXT 15 OR 20 YEARS,
TO TELL YOU THE TRUTH.
>> IN FACT, ASKED TO GRADE
THE NATIONAL ECONOMY RIGHT NOW,
FORMER STATE ECONOMIST
FOR WISCONSIN, TERRY LUDEMAN
GIVES IT A D-MINUS.
AND HE DOESN'T GIVE A PASS
TO THE REPUBLICAN OR DEMOCRATIC
CANDIDATES RUNNING FOR PRESIDENT
WHEN IT COMES TO FIXING IT
FOR MOST VOTERS.
>> WHEN I WATCH THE DISCUSSION
ON ECONOMIC, WHETHER IT BE
FROM DEMOCRATS OR REPUBLICANS,
I DON'T SEE ANYBODY NECESSARILY
PUTTING FORWARD SOME KIND OF
PLANS THAT REALLY HELP
THE WORKING CLASS FAMILIES
IN THE UNITED STATES.
>> THE CANDIDATES, OF COURSE,
WOULD BEG TO DIFFER.
FOR HIS PART, REPUBLICAN
PRESIDENTIAL CANDIDATE,
JOHN MCCAIN, SAYS HE WOULD END
DEPENDENCE ON FOREIGN OIL TO
BRING PRICES DOWN AT THE PUMP,
GIVE DRIVERS A SUMMER
GAS TAX HOLIDAY, CUTTING THE
18.4 CENT A GALLON FEDERAL TAX,
AND ROLL BACK CORN ETHANOL
MANDATES, WHICH CONTRIBUTE
TO RISING FOOD COSTS.
DEMOCRATIC CANDIDATE,
BARACK OBAMA SAYS HE WOULD
IMPOSE A WINDFALL PROFIT TAX
ON OIL COMPANIES
TO GIVE $1,000 ENERGY REBATES
TO FAMILIES, AND GIVE
$25 BILLION TO STATES
TO PREVENT CUTS IN HEALTH,
HOUSING OR HEATING ASSISTANCE.
AS FOR OTHER TAX CUTS OR HIKES,
THE BOTTOM LINE, ACCORDING TO
THE NON-PARTISAN
TAX POLICY CENTER IS THIS.
THEY SAY SENATOR MCCAIN'S
TAX CUTS WOULD PRIMARILY BENEFIT
THOSE WITH VERY HIGH INCOMES.
IN MARKET CONTRAST,
SENATOR OBAMA OFFERS
MUCH LARGER TAX BREAKS TO LOW
AND MIDDLE INCOME TAX PAYERS,
AND WOULD INCREASE TAXES
ON HIGH INCOME TAXPAYERS.
BOTH PLANS, ACCORDING TO
THE CENTER, WOULD SUBSTANTIALLY
INCREASE THE NATIONAL DEBT
DURING THE NEXT 10 YEARS
BY TRILLIONS OF DOLLARS.
TERRY LUDEMAN SAYS THAT DEFICIT
PROBLEM AND RESULTING ECONOMIC
PAIN COULD BE HANDLED, IF EITHER
CANDIDATE OR THEIR PARTIES
WERE WILLING TO MAKE
TOUGH CHOICES.
>> HAD WE MADE BETTER DECISIONS
ALONG THE LINE, WE WOULDN'T BE
IN THIS POSITION
AT THIS POINT IN TIME.
WE'LL ALWAYS CONTINUE TO TRY AND
BACKFILL, IF YOU WILL, RATHER
THAN MAKE FRONT END DECISIONS
OUT OF POSITIVE KINDS OF THINGS.
>> DESPITE THAT, LUDEMAN SAYS
HE DOES BELIEVE THAT IN THE
MIDST OF THIS REELING ECONOMY,
THE BEST CANDIDATE FOR THE JOB
WILL BE THE PERSON WITH
THE BEST LEADERSHIP QUALITIES,
THE PERSON
WHO CAN GET SOMETHING DONE.
>> WHO IS THE PERSON
THAT'S GOING TO DO THAT?
YOU KNOW, FIX IT?
>> THAT'S THE OPEN QUESTION
FOR VOTERS LIKE KELLY GROELER,
WHO RECOGNIZE THERE'S PLENTY
TO FIX.
FROM MAIN STREET WISCONSIN,
TO WALL STREET AND WASHINGTON.
>> SHOULD WE STICK OUR NOSES
IN IT?
>> IT SMELLS YUMMY!
>> ELECTION DAY IS NOVEMBER 4.
FOR MORE IN DEPTH INFORMATION
ON THE ISSUES, AND ALL OF
THE PRESIDENTIAL CANDIDATES
ON WISCONSIN'S GENERAL ELECTION
BALLOT, GO TO OUR
ELECTION YEAR ONLINE RESOURCE:
WISCONSINVOTE.ORG
I'M PATTY LOEW.
THANKS FOR JOINING US.
>> MAJOR FUNDING FOR
"IN WISCONSIN" IS PROVIDED
BY THE PEOPLE OF ALLIANT ENERGY,
WHO BRING SAFE, RELIABLE AND
ENVIRONMENTALLY FRIENDLY ENERGY
TO KEEP HOMES, NEIGHBORHOODS
AND LIFE IN WISCONSIN
RUNNING SMOOTHLY.
ALLIANT ENERGY, OFFERING
ENERGY-SAVING IDEAS ON THE WEB.
AND BY THE ANIMAL DENTAL CENTER
OF MILWAUKEE AND OSHKOSH.
A VETERINARY SPECIALIST WORKING
WITH PET OWNERS AND FAMILY
VETERINARIANS THROUGHOUT
WISCONSIN, PROVIDING CARE FOR
ORAL DISEASE AND DENTAL PROBLEMS
OF SMALL COMPANION ANIMALS.