CAPTIONS PRODUCED BY RIVERSIDE CAPTIONING COMPANY WWW.CLOSED-CAPTIONING.COM
CARE FOR ORAL DISEASE AND DENTAL
PROBLEMS FOR SMALL COMPANION
ANIMALS.
ADDITIONAL SUPPORT FOR HERE AND
NOW IS PROVIDED BY THE LE
PHILLIPS FAMILY FOUNDATION.
>> I'M FREDERICA FREYBERG.
TONIGHT ON "HERE AND NOW."
IMMIGRATION POLICY IN ARIZONA IS
STIRRING UP A STATE-BY-STATE
DEBATE.
WE'LL SEE WHERE IT LEADS IN
WISCONSIN.
ARE WE IN AN ECONOMIC RECOVERY
YET?
WILL THE SIGNS OF RECOVERY BE IN
THE BADGER STATE AND WHERE WILL
THE JOBS BE?
WE'LL ASK A TOP ECONOMIST THOSE
QUESTIONS.
AND LATER AN UPDATE ON WOLVES,
CARP, AND DEER.
OH MY.
BUT FIRST ARIZONA'S TOUGH NEW
LAW CRACKING DOWN ON ILLEGAL
IMMIGRANTS GETS THE NATION, AND
WISCONSIN, TALKING ABOUT
IMMIGRATION REFORM.
IN A FEW MINUTES, WE'LL HEAR
FROM A BUFFALO COUNTY DAIRY
FARMER ABOUT WHY HE NEEDS
MEXICAN LABOR TO STAY IN
BUSINESS.
BUT FIRST, GREEN BAY DEMOCRAT,
SENATOR DAVE HANSEN AUTHORED A
BILL THIS PAST LEGISLATIVE
SESSION THAT WENT NO-WHERE.
MUCH LIKE, SOME MIGHT SAY,
IMMIGRATION REFORM ON THE
NATIONAL FRONT.
BUT HANSEN'S BILL SIGNED ONTO BY
SEVERAL LAWMAKERS, WOULD HAVE
REQUIRED ANY COMPANY THAT HAS
HIRED ILLEGAL ALIENS TO BE
INELIGABLE FOR ANY INCOME OR
PROPERTY TAX EXEMPTION, ENTER
INTO ANY CONTRACT WITH STATE OR
LOCAL GOVERNMENT FOR PROVIDING
CONSTRUCTION WORK OR SUPPLYING
EQUIPMENT AND THE MEASURE
WOULD HAVE MADE SUCH EMPLOYERS
INELIGABLE FOR ANY GRANTS OR
LOANS FROM LOCAL GOVERNMENT.
WE SAT DOWN WITH SENATOR HANSEN
AT HIS CAPITOL OFFICE.
>> WHAT WAS YOUR MOTIVATION IN
AUTHORING THIS BILL?
>> MY MOTIVATION, MOST OF THE
TIME WE HAVE THE DISCUSSION ON
THE IMMIGRANTS, IT'S ALL ABOUT
THE EMPLOYEE.
NEVER ABOUT THE EMPLOYER.
IF THE EMPLOYER WAS NOT GETTING
ALL OF THE TAX BREAKS FROM LOCAL
AND STATE GOVERNMENT, MAYBE THEY
WOULDN'T BE HIRING THE ILLEGALS
AND MAYBE THE PROBLEM WOULDN'T
BE AS HARD AS IT IS.
WE HAD A VOTE WHERE WE PASSED IN
THE STATE SENATE.
IT PASSED 3-2.
THE TWO REPUBLICANS CAME OUT
AGAINST
IT.
WHO WANTED YOU, WHAT GROUP
WANTED YOU TO DRAFT THE MEASURE?
>> WE WANTED TO SAY THAT WE WANT
TO ADDRESS THIS PROBLEM.
LET'S ADDRESS IT IN A DIFFERENT
PERSPECTIVE THAN ARIZONA IS
DOING.
LET'S ADDRESS IT THE WAY THEY
ARE DOING THEIR HIRING.
>> HOW ABOUT LAYER UNIONS?
>> THIS IS MORE ABOUT POLITICAL
PEOPLE IN OUR PARTY THAT DECIDED
IN THE STATE SENATE.
WE BROUGHT IT FORWARD TWO YEARS
AGO.
IT SEEMS EVER MORE APPARENT
TODAY THAT IT IS A TOPIC WORTH
DISCUSSING.
WHEN I BROUGHT IT UP ON THE
FLOOR FOR DISCUSSION, YOU KNOW,
THEY OBJECTED TO A THIRD
READING, I WENT, LET'S HAVE A
DEBATE.
LET'S HAVE A DISCUSSION.
YOU WANT TO AMEND IT AND CHANGE
IT.
LOCAL AND STATE GOVERNMENT
SHOULD NOT PROVIDE TAX
INCENTIVES FOR PEOPLE THAT
KNOWINGLY ARE HIRING LEGALS.
>> THE BUSINESS LOBBY WORRIED
ABOUT THIS, THEY WORRY IT WILL
PUSH JOBS OUT OF WISCONSIN
BECAUSE AN EMPLOYER MAY
MISTAKENLY HIRE SOMEONE.
THIS RACES A FEAR AMONG
CORPORATIONS.
>> IF THEY MAKE A GOOD SAFE
EFFORT.
SO BASICALLY WHAT WE ARE TRYING
TO DO IS GO AFTER THE PEOPLE IN
A NONUP LOUSE WAY THAT ARE
KNOWINGLY HIRING ILLEGALS AND
TAKING TAX CREDITS AND BREAKS
FROM THE LOCAL GOVERNMENT.
I DON'T THINK THEY SHOULD BE
FINANCING THAT KIND OF
EMPLOYMENT IN MY OPINION.
THE DAIRY INDUSTRY EMPLOYS A LOT
OF MEXICAN LABOR.
THEY WOULD GO OUT OF BUSINESS IF
THEY DIDN'T HAVE ACCESS TO THIS
LABOR.
WHAT ABOUT THE IMPACT OF ANY --
EVEN THOUGH YOUR BILL DID NOT
MAKE IT OUT THIS SESSION?
WHAT ABOUT THE IMPACT OF SUCH A
LAW ON THE DAIRY FARMERS IN THE
STATE OF WAS?
>> THIS SHOULD BE BEING DEALT
WITH AT THE FEDERAL LEVEL.
THE BUSH ADMINISTRATION DIDN'T
WANT TO DO IT BECAUSE CHEAP
LABOR IS SHOWING UP AT THE DOORS
AND INCREASING THE PROFIT.
IF THEY WANTED THAT DEBATE AND
DISCUSSION, WE SHOULD NOT OUT OF
HAND HAD A REJECTION IF YOU
OBJECTED TO THE LAST READING.
IT WOULD HAVE KILLED THAT BILL.
THAT WAS THE CONCERN.
YOU KNOW, THE OTHER SIDE ALWAYS
TALKS ABOUT WHAT WE SHOULD DO
ABOUT ILLEGAL IMMIGRATION.
IT'S ALWAYS ABOUT THE EMPLOYEE
AND NOT THE EMPLOYER.
WE WANT TO AT LEAST HAVE THIS
DISCUSSION WHERE IT'S NOT ALL
THE FAULT OF THE YOUNG MEN AND
WOMEN OR OLDER MEN AND WOMEN
THAT ARE COMING FROM MEXICO.
IT'S THE FACT THAT PEOPLE ARE
HIRING THEM.
>> THE BILL ITSELF USING THE
LANGUAGE ILLEGAL ALIEN.
ONE FARMER THAT WE TALKED TO
SAID THAT'S JUST RACIST TO EVEN
USE THAT TERM AND THEN THERE IT
IS IN BOTH PRINT ON -- BOLD
PRINT ON SENATE BILL 600.
WHAT IS YOUR RESPONSE?
>> MY RESPONSE, I'VE NEVER BEEN
CALLED A RACIST BEFORE.
I'VE BEEN ABLE TO WORK WITH
EVERYBODY IN MY AREA.
AND IF WE WOULD HAVE HAD THE
DISCUSSION ON THE BILL AND
SOMEBODY WANTED TO AMEND IT, WE
WERE NOT IN AN AMENDABLE STAGE.
IT WAS THE BEGINNING OF THE
DISCUSSION ON THE FLOOR.
WE COULD HAVE HAD THIS
DISCUSSION.
THAT DIDN'T HAPPEN BECAUSE
SENATOR FITZGERALD CUT OFF THE
DEBATE.
IF THEY ARE GOING TO TALK ABOUT
IMMIGRATION REFORM.
THIS IS A TOPIC THAT SHOULD BE
AT LEAST DISCUSSED.
LET'S LOOK AT WHAT'S CAUSING THE
ILLEGALS COMING TO THE STATE.
>> WORK.
YOU CAN'T FAULT THEM FOR THAT.
WE MUST PUT A SYSTEM IN PLACE
BECAUSE IT IS DRIVING WAGES DOWN
AND UNUP LOUSE PEOPLE -- UNUP
LOUSE PEOPLE OUT THERE.
WE ARE NOT GOING TO GIVE THEM
TAX BREAKS BY THIS BILL.
>> THIS SAME FARMER THAT WE
TALKED WITH SAID THAT THIS BILL
THERE WAS NEVER INTENDTION OF
ACTUALLY PASSING THIS.
IT WAS SIMPLY TO FUEL POLITICAL
CAMPAIGNS.
YOUR RESPONSE TO THAT?
>> THEY HAVE USED ILLEGAL
IMMIGRATION AGAINST ANY DEMOCRAT
THAT IS RUNNING.
THEY ALWAYS USED THAT AGAINST
ALL THEIR CANDIDATES THAT WERE
PRO THE ILLEGALS AND --
IMMIGRANTS.
THAT'S BEEN THEIR TALKING POINT.
WHY NOT HAVE A DISCUSSION ON THE
ISSUE.
THEY CAN CRITICIZE US.
WHEN WE WANT TO HAVE THE
DISCUSSION IN THE SENATE, YOU
KNOW, AND LAST TIME, WE DID PASS
IT ON THE FLOOR.
BUT IT WAS PASSED OUT OF THE
STATE SENATE.
WE HAD THE DEBATE AND
DISCUSSION.
IT'S A BIPARTISAN BILL.
AND LAST TIME, I THINK THERE
WERE SIX STATE SENATORS THAT
BORDERED THE DISCUSSION TO SAY
YES TO THIS BILL.
IT'S BIPARTISAN.
TO REJECT IT BY OBJECTING TO IT
ON THE LAST DAY, IT'S AMAZING.
IF WE ARE GOING TO HAVE A
DISCUSSION ON IMMIGRATION
REFORM, LET'S HAVE A DISCUSSION.
>> SENATOR HANSON, THANK YOU.
>> WE ASKED FITZGERALD FOR A
STATEMENT REGARDING HIS
PROPOSAL.
SB600 PUTS THE RESPONSIBLE ON
WISCONSIN EMPLOYERS TO VERIFY
WORKER DOCUMENTATION RATHER THAN
THE STATE OR FEDERAL
GOVERNMENTS.
LOCAL EMPLOYERS ARE NOT TRAINED
TO RECOGNIZE FALSE
DOCUMENTATION.
THIS IS ANOTHER EXAMPLE OF AN
ILL THOUGHT OUT BILL OF A
SESSION.
ONE COUNTY DAIRY FARMER GETS
ANGRY LIKE THE MEASURES IN PLAY
IN THE LEGISLATURE.
HE COULDN'T SURVIVE
WITHOUT
THEM.
>> THE OWNERS EMPLOY EIGHT
WORKERS FROM MEXICO.
THE FARM WOULD NOT SURVIVE
WITHOUT THEM.
THERE'S A SHORTAGE OF LABOR.
EVEN WHEN I WAS A KID.
>> JOHN MILKS ABOUT 500 COWS.
A LARGER OPERATION THAN THE
ORIGINAL DAIRY FARM.
HIRING MEXICAN LABOR IS A
GROWING TREND A THIRD OF THE
WORKERS ON WISCONSIN DAIRY FARMS
ABOUT 4,200 ARE LATINO.
THE STATE SECRETARY OFFING A
GROUTLE ACKNOWLEDGES THE NEED.
>> IT ISN'T THAT ONE MORNING
THEY WOKE UP AND DECIDED IT
WOULD BE BETTER TO THIS MEXICAN
LABOR.
THEY WENT THERE BECAUSE THAT WAS
THE ONLY CHOICE LEFT IN MOST
CASES.
>> A RECENT ACADEMIC SURVEY
FOUND THAT 40% OF WISCONSIN
DAIRY FARMS WOULD GO OUT OF
BUSINESS WITHOUT HIRES FROM
SOUTH OF THE BORDER.
>> WE NEED THE LABOR.
WE MILK AROUND THE CLOCK.
WE COULD NOT FIND ENOUGH LOCAL
LABOR TO DO THE JOB FOR
US.
THE SHIFTS ARE GOOD.
>> FOR WAGES THAT ALLOW THEM TO
SUPPORT THEIR FAMILIES.
>> JOB COMPETITION IS JUST ONE
REASON DAVID GORACK LEADS A
GROUP HEADQUARTERED IN HIS HOME
CALLED THE MIDWEST COALITION TO
REDUCE IMMIGRATION.
THE TRUE AIM IS TO SEND EVERY
ILLEGAL IMMIGRANT PACKING.
>> MY FAVORITE FIVE LETTER WORDS
LEGAL.
YOU HAVE TO ENFORCE THE LAWS.
IF YOU DON'T DO THAT, YOU BREED
CONTEMPT FOR ALL HOUR.
>> HE IN NO WAY CONSIDERS
HIMSELF EXEMPT.
HE STAYS AWAKE WORRYING THAT HIS
PEOPLE ARE NOT LEGAL.
>> THE DOCUMENTS I MAY BE
RECEIVING ARE NOT REAL.
IF THEY ARE NOT REAL, I WILL BE
CHECKED BY HOMELAND SECURITY NOW
AND I LOSE MY EMPLOYEES.
>> BY LAW, HE'S NOT EXPECTED TO
BE A DOCUMENT EXPERT.
THEY HAVE SOCIAL SECURITY NUMBER
OR DRIVER'S LICENSES.
HE'S ALSO NOT ALLOWED TO DENY
EMPLOYMENT BASED ON COLOR OF
SKIN.
OR ASSUMPTION THAT IF THE
APPLICANT IS MEXICAN, HE WOULD
BE ILLEGAL.
>> HE JOINS US NOW FROM EAU
CLAIRE.
THANK YOU FOR DOING SO.
>> THANK YOU.
>> WHAT IS YOUR REACTION TO THE
SENATE BILL 600 THAT WOULD HAVE
PENALIZED THEM HIRING ILLEGAL
ALIEN?
>> IT IS IRRITATING.
IT'S SIMILAR TO USING THE "N"
WORD.
THEY ARE UNDULTED PEOPLE.
SH UNDOCUMENTED PEOPLE.
THE BILL ITSELF, LEGISLATORS
HAVE A TOUGH JOB.
THEY HAVE TO CREATE LEGISLATION
THAT IS GOING TO LAST OVER A
LONG PERIOD OF TIME.
AND SOMETHING LIKE THIS ONLY
STIRS UP RACIAL HATRED AND
THINGS LIKE THAT AND IT'S JUST
SOMETHING WE DO NOT NEED IN
WISCONSIN.
>> WHAT ABOUT THE CONCERNS
THOUGH ON THE PART OF THE AUTHOR
WHO EXPRESSED THAT UNDOCUMENTED
IMMIGRANT LABOR IS TAKING JOBS
AND DRIVING DOWN WAGES FOR
WISCONSIN BORN WORKERS?
>> OUR EXPERIENCE IS THAT I HAD
A DAIRY FARM AND NOT A LOT OF
PEOPLE WANT TO WORK ON DAIRY
FARMS ANYMORE.
USED TO BE PEOPLE DID WANT TO DO
THAT.
I PROBABLY HAD 150 PEOPLE APPLY
FOR JOBS FOR FARMS AND THREE OF
THEM FROM THE UNITED STATES.
>> THE AUTHOR OF THE BILL SAYS
THAT EMPLOYERS UNDER THIS BILL
WOULD BE PENALIZED IF THEY
KNOWINGLY HIRED UNDOCUMENTED OR
FALSELY DOCUMENTED WORKERS.
WOULDN'T THAT PROTECT YOURSELF
OR OTHERS IN GOOD FAITH?
>> I DON'T KNOW HOW THE LAW
WOULD DEFINE UNKNOWINGLY.
WHAT I DO WHEN I HIRE, I REQUIRE
DOCUMENTATION.
THEY GIVE ME DOCUMENTATION.
I NEED TO LOOK AT IT.
IF I LOOK AT IT AS A REASONABLE
PERSON AND IT LOOKS LIKE A
REASONABLE DOCUMENT, I'M TO
ACCEPT IT.
IF I DON'T ACCEPT IT AND I DO
NOT HIRE AND I MAKE A MISTAKE,
THEN I'M LIABLE FOR
DISCRIMINATION SUIT BY THE
OFFICE OF SPECIAL COUNSEL BY THE
DEPARTMENT OF JUSTICE.
>> WHEN WE VISITED YOU ON YOUR
FARM, THE BIGGEST FEAR THAT YOU
WILL LOSE YOUR WORKERS IN AN
IMMIGRATION RAID.
IS IT STILL?
>> YES, ALL OF THE FACTORS WE
HAVE TO DEAL WITH, THAT'S ONE
THING WE CANNOT CONTROL.
AND I'M HOPING THAT THE TOOK
UTILITIES -- DOCUMENTS THAT I
RECEIVE FROM THE EMPLOYEES ARE
REAL AND ON THE UP AND UP.
BUT I DON'T KNOW.
IF I SEE -- IF THEY WOULD COME
IN AND CHECK MY FARM RATHER THAN
SOMEBODY ELSE OR WHATEVER, AND
FIND OUT THAT MY EMPLOYEE'S
DOCUMENTS ARE NOT REAL AND THEY
DEPORT THEM, I AM BASICALLY OUT
OF BUSINESS.
>> DESCRIBE THAT HOW IMPORTANT
THESE MEXICAN WORKERS ARE TO
WISCONSIN DAIRY WARMS AS --
FARMS AS A WHOLE?
>> RECENT STUDY AND THIS IS TWO
YEARS AGO AND MEANS MORE NOW
PROBABLY, 40% OF THE DAIRY FARM
WORKERS IN WISCONSIN ARE
FOREIGN-BORN.
AND IN THE WHOLE COUNTRY, IT'S
40% OF ALL OF THE DARE INCLUDING
PEOPLE WORKING CHEESE FACTORIES
AND SO FORTH.
IF YOU TAKE THAT EQUATION OUT OF
THE DAIRY INDUSTRY, WE ARE FELL
GOING TO BE IN A WORLD OF HURT.
>> WHAT DO YOU WANT TO SEE
HAPPEN WITH ANY IMMIGRATION
REFORM SPECIFIC TO YOUR NEEDS
AND THE NEEDS OF THE EITHER
DAIRYMEN.
>> WHAT LEGISLATORS NEED TO
RECOGNIZE, THERE IS A NEED FOR
THE PEOPLE WORKING ON OUR FARMS
AND FACTORIES AND HOTELS THAT
THESE JOBS ARE UNATTRACTIVE TO
AMERICANS.
SO SOMEHOW THEY NEED TO
RECOGNIZE THAT FIRST AND THEN
ADDRESS THAT.
AND TRY TO MAKE IT SO THAT THOSE
OF US THAT ARE TRYING TO MAKE AN
HONEST LIVING OUT HERE CAN BE
ASSURED WHAT WE ARE DOING IS THE
CORRECT THING AND THE PEOPLE
THAT ARE WORKING FOR US ARE
PROTECTED FROM ARBITRARY OR
LET'S SAY VIGILANTE TYPES OF
THINGS THAT ARE DRIVEN ON A RACE
BASIS.
THEY HAVE RIGHTS OR OUR
EMPLOYEES SHOULD HAVE RIGHTS.
THE WAY THE LAW STANDS, IF THEY
ARE UNDOCUMENTED, THEY DON'T
HAVE THE RIGHTS THAT NORMAL
AMERICAN HAS.
AND IN SOME CASES, THAT'S
IMPORTANT.
WE TRY TO MAKE SURE THAT ON OUR
FARM THAT WE TREAT THEM RIGHT.
>> THAT NEED IS STILL OUT THERE
EVEN IN KIND OF PERHAPS TAIL END
OF THIS RECESSIONARY PEOPLE, THE
NEED FOR THESE IMMIGRANT
WORKERS?
>> I AND OTHER FARMERS THOUGHT
THAT WHEN WE WENT INTO THIS
RECESSION AND IT WAS PRETTY
DEEP, IT AFFECTED A LOT OF
PEOPLE AND A LOT OF PEOPLE WERE
UNEMPLOYED THAT WE GIVE A LOT OF
PEOPLE APPLYING FOR JOBS.
I TALKED TO PEOPLE IN MINNESOTA
AND WISCONSIN AND TALKED TO
PEOPLE IN IOWA AND WE HAVE HAD
NO UP TICK ON APPLICATIONS.
HAD PEOPLE PUT AN AD IN THE
PAPER TO SEE IF THERE WAS PEOPLE
WHO WANTED TO WORK ON DAIRY
FARMS AND HAD NO RESPONSE.
>> HOW WOULD YOU GRADE THE
FEDERAL GOVERNMENT AND OUR OWN
U.S. SENATORS IN WISCONSIN ON
THEIR RESPONSIVENESS TO THIS
ISSUE AND YOUR NEEDS?
>> I WAS IN WASHINGTON D.C.
ABOUT A MONTH AGO ON THIS ISSUE
AND VISITED WITH ALL OF OUR
CONGRESSMEN AND WOMEN IN
WISCONSIN ON THE ISSUE.
WE FOUND THE RECEPTION FROM OUR
SENATORS, REPRESENTATIVE RON
KIND WAS VERY SUPPORTIVE AND
CONGRESSMAN RYAN SAT AND MET
WITH US AND SENATOR --
REPRESENTATIVE RYAN AND
REPRESENTATIVE KAGAN ALL SAT
DOWN WITH US.
I THINK THEY UNDERSTAND THE
ISSUE.
THEY ARE A LITTLE BIT
CONCERNED -- THEY ARE VERY
CONCERNED ABOUT THE POLITICS OF
THE SITUATION.
>> I'M SURE THAT'S ACCURATE.
THANK YOU FOR JOINING US.
>> THANK YOU.
>> THEY WOULD LIKE TO FRG TO
ALLOW MORE VISAS THAN THE 65,000
CURRENTLY OFFERED.
THAT REFERS TO THE CURRENT
UNDOCUMENTED WORKERS IN THE U.S.
AND ALSO SEE LAWS EASIER PATH TO
CITIZENSHIP.
>> IT WAS A BIG WEEK IN
WILDLIFE.
KEEP ASIAN CARP FROM INVADING
THE LAKE MICHIGAN WATERS.
THE U.S. SUPREME COURT DECIDED
NOT TO DO IT.
FROM CHICAGO IN TO LAKE
MICHIGAN.
ALSO THIS WEEK.
THE D.N.R. BOARD APPROVED
CHANGES TO ALLOW HUNTERS TO TAKE
BUCKS IN FIVE ADDITIONAL ZONES
AROUND THE STATE.
AND THEY LIFTED RESTRICTIONS ON
ANTLERLESS RESTRICTIONS.
AND WISCONSIN AND JOINED
MINNESOTA TO REMOVE THE GRAY
WOLF FROM THE FEDERAL ENDANGERED
SPECIES LIST.
ANIMAL RIGHTS ADVOCATES PREFER
TO SEE THE WOLF PROTECTED.
THOSE OPPOSED WANT TO TAKE STEPS
TO CONTROL WOLVES WHICH CREATE
THE LIVESTOCK.
THEY ARE MORE THAN 700 ANIMALS.
TWICE THE NUMBERS SET.
>> IT'S HARD TO DETERMINE IF
WISCONSIN IS IN ECONOMIC
RECOVERY OR NOT.
UNEMPLOYMENT IS UP IN MILWAUKEE
SLIGHTLY DOWN AND OTHER PARTS OF
THE STATE LIKE RACINE.
WE REVEALED TOUGH TIMES FOR
LEADERS OF THE PACK.
HARLEY-DAVIDSON MAY THROTTLE
DOWN ITS OPERATION TO THE TUNE
OF $54 MILLION IN OPERATIONAL
CUTS THIS AS THE U.S. COMMERCE
DEPARTMENT SAYS INCREASE
CONSUMER SPENDING HAS FUELED AN
ECONOMIC GROWTH DURING THE FIRST
QUARTER OF THIS YEAR.
ARE THEY RECOVERING OR SUFFERING
IN THE THROWS OF THE ECONOMY.
THANK YOU FOR JOINING US.
>> MY PLEASURE.
>> WHAT'S THE WORD AS TO WHETHER
WE ARE, IN FACT, IN RECOVERY?
>> I THINK THE UNITED STATES AS
A WHOLE CLEARLY IN RECOVERY.
WE HAD THREE QUARTERS OF GDP
EXPANSION BEGINNING LAST SUMMER.
WISCONSIN IS COMING ALONG FOR
THE RIDE ON THAT RECOVERY.
AT THE NATIONAL AND STATE LEVEL,
IT'S A FAIRLY TEPID RECOVERY.
IT'S ABOUT AVERAGE FOR THE LONG
TERM, BUT GIVEN HOUSE SEVERE THE
RECESSION WAS, WE SHOULD BE
GETTING BETTER THAN AVERAGE
GROWTH.
5 TO 6 TO 7% GROWTH.
WE ARE NOT GETTING IT.
THIS IS GOING TO BE A SLOW AND
PAINFUL RECOVERY PROCESS.
THE WORST IS BEHIND US.
IT'S NOT GOING TO FEEL VERY MUCH
LIKE A BOOM, NOT FOR SOME
QUARTERS TO COME.
>> AS IN MOST THINGS, ECONOMIC
RECOVERY COME TO IT LATER THAN
OTHER PARTS OF THE COUNTRY?
>> I THINK IT'S GOING TO BE A
MIXED BAG.
THE AREAS OF THE ECONOMY THAT
ARE DOING BETTER RIGHT NOW HAVE
TO DO WITH MANUFACTURING WHICH
SHOULD BE A PLUS FOR WISCONSIN.
BUT THE MIX OF MANUFACTURING
ALSO MATTERS QUITE A BIT.
THE BIGGEST SOURCE OF DEMAND
RIGHT NOW IS COMING ACTUALLY
FROM OVERSEAS.
U.S. EXPORTS HAVE BEEN A SOURCE
OF GROWTH FOR THE LAST COUPLE OF
QUARTERS.
AND, AGAIN, IN WISCONSIN, YOU
HAVE SOME FIRMS THAT BENEFIT
FROM THAT.
SOME WHICH ARE IN COMPETITION
WITH THAT.
SO I THINK IT'S THE JURY IS
STILL OUT ON THAT ONE.
>> WHAT KINDS OF MANUFACTURING
THEN WOULD THAT REPRESENT IN
WISCONSIN?
>> ANY NUMBER OF COMPANIES FROM
THE LARGE WELL-KNOWN ONES, OTHER
HEAVY MANUFACTURE TO SMALL AND
MIDSIZED BUSINESSES THAT ARE
ALSO HEAVILY INVOLVED IN
EXPORTS.
SO THINGS THAT WOULD NOT BE
HOUSEHOLD NAMES.
>> HOW MEANINGFUL IS THE BOOST
IN CONSUMER SPENDING?
BECAUSE I UNDERSTAND THAT
CONSUMER SPENDING ACCOUNTS FOR
70% OF OUR ECONOMY?
>> RIGHT, IF YOU LOOK AT G.D.P.,
70% IS CONSUMPTION.
THIS MOST RECENT QUARTERLY
FIGURE INCLUDES A PRETTY GOOD
BUMP UPWARD IN CONSUMPTION
SPENDING.
A LITTLE BIT FASTER THAN THE
G.D.P. NUMBER ITSELF.
WE ARE STILL TALKING AROUND 3.6%
IN ORDINARY TIMES AND NORMAL
TIMES.
WE WOULD SAY THAT'S GOOD ENOUGH.
WHEN YOU'RE DIGGING OUT OF A
DEEP WHOLE FROM THE MOST
SESEVERE RECESSION WE HAD IN
DECADES, THAT'S A PAINFUL
RECOVERY.
AT THE MOMENT, IT DOESN'T LOOK
LIKE THAT'S PROMISING.
>> IN FACT, THAT 3.2% WAS SHY OF
EXPECTATIONS.
WHAT'S HOLDING US BACK?
>> A COUPLE OF THINGS.
AS I MENTIONED, EVEN THOUGH THE
CONSUMER IS COMING BACK, WE NEED
THE CONSUMER TO DO BETTER.
WE NEED MORE MOMENTUM FROM THE
THE CONSUMER.
THAT'S HARD TO DO WHEN YOU ARE
UNDER DEBT.
WE SAW AN EXPLOSION OF CONSUMER
DEBT USAGE WITH CREDIT CARDS AND
AUTO LOANS AND THERE WAS TOO
MUCH DEBT ON THE CONSUMER
BALANCE SHEET.
CONSUMERS WERE RETRENCHING AND
THAT HAS RESTRICTED SPENDING
GROWTH MORE THAN OTHERWISE
WOULD.
THE OTHER FACTOR THAT IS A BIG
DRAG IS HOUSING.
HOUSING IS A POWERFUL ENGINE OF
GROWTH IN THE LAST TWO DECADES
PARDONLY IN THE '03 TO 06 TIME.
WE ARE NOT COMING BACK WITH MUCH
VIGOR.
I THINK THOSE ARE THE TWO
BIGGEST DRAGS ON THE RECOVERY AT
THIS TIME.
>> BUMPING ALONG THE BOTTOM NOW,
THE HARLEY-DAVIDSON SUGGESTIONS
THAT CONSUMERS ARE SPENDING.
IT'S PENT-UP SPENDING WHERE YOU
HAVE TO REPLACE SOMETHING
BECAUSE YOU ARE WAITING SO LONG.
WE ARE NOT BUYING BIG TICKET
TOYS.
>> I THINK THERE'S BEEN A SHIFT
FROM WHICH MIGHT CALL MORE
DISCUSSIONNARY ITEMS TO MORE
NECESSITIES.
AS THE RECOVERY MATURES, I THINK
YOU WILL SEE MORE DEMAND FOR
SOME OF THE LUXURY GOODS.
THE DISCRETIONARY ITEMS.
THEY ARE MORE VOLATILE AND
SUFFER THE MOST IN A DOWNTURN.
>> I KNOW YOU SUGGESTED THAT THE
GROWTH YOU WERE SEEING IS NOT
GOOD ENOUGH TO PULL US OUT OF
THIS ENTRENCHED RECESSION.
HOW SUSTAINED AND WHAT MUST WE
BE TO MAKE UP FOR THE LOSSES OF
RECESSION IF WE EVER CAN?
>> YES.
WELL, TYPICALLY IT'S TAKEN ABOUT
A YEAR, IN SOME CASES A LITTLE
LESS, IN SOME CASES A LITTLE
MORE TO RECOVER THE OUTPUT LOST
DURING A RECESSION.
IN THE LAST COUPLE OF
RECOVERIES, IT'S TAKEN ABOUT A
YEAR AND A HALF TO RECOVER THE
JOBS LOST IN THE RECESSIONARY
PERIOD.
IT'S GOING TO TAKE US A COUPLE
OF YEARS TO RECOVER OUR OUTPUT.
IT COULD TAKE US FOUR OR FIVE
YEARS TO RECOVER THE LOST OF
EMPLOYMENT.
ALL OF THAT TIME, THE LABOR
FORCE WILL PROBABLY BE GROWING.
ALMOST CERTAINLY BE GROWING.
EVEN IF WE GET ALL OF THE JOBS
BACK, THE UNEMPLOYMENT RATE IS
GOING TO BE HIGHER THAN IT WAS
COMING INTO THE RECESSION.
WE ARE IN RECOVERY, I THINK IT'S
GOING TO BE A DISAPPOINTING
RECOVERY COMPARED TO SAY, THE
EARLY 80s WHEN WE HAD A SEVERE
RECESSION FOLLOWED BY A VERY
ROBUST PERIOD OF GROWTH.
THIS IS LOOKING MORE LIKE THE
JOBLESS RECOVERIES OF THE EARLY
90s AND THE '02, '03 PERIOD.
>> NONE OF THAT SOUNDS GOOD.
IT'S BETTER THAN CONTINUING TO
SINK DEEPER IN RECESSION OR
DEPRESSION.
IF YOU WERE OUT THERE UNEMPLOYED
LOOKING FOR A JOB, WHERE WOULD
YOU GO FIRST?
>> IT DEPENDS ON YOUR SKILLSET.
THERE CONTINUES TO BE SOME JOB
GROWTH IN SOME SECTORS AND THE
SECTORS THAT HAVE HELD UP BEST
IN TERMS OF EMPLOYMENT IN THIS
CYCLE HAVE BEEN IN EDUCATION, IN
HEALTHCARE, TO SOME EXTENT IN
LEISURE ACTIVITIES AND THE
WEAKEST AREAS IN MANUFACTURING
AND CONSTRUCTION.
FINANCIAL SERVICES WAS AN AREA
OF TREMENDOUS EMPLOYMENT GROWTH
THAT'S GOING TO BE HARDER.
IF YOU WERE OUT OF WORK
PARTICULARLY IN CONSTRUCTION OR
MANUFACTURING, YOU MIGHT WANT TO
BE LOOKING AT DEVELOPING A NEW
SKILLSET AND LOOKING AT SOME OF
THESE FIELDS THAT HAVE BETTER
LONGER TERM FUNDAMENTALS.
>> JAY MUELER, THANK YOU VERY
MUCH.
>> THANK YOU.
>> MORE ON THE ECONOMY ON NEXT
FRIDAY'S PROGRAM.
WE HAVE BEEN IN BELOIT WORKINGP
ON THAT CITY'S ALARMING 18%
UNEMPLOYMENT RATE.
AND THE HUNT FOR JOBS IN BELOIT.
I'M FREDERICA FREYBERG.
HAVE A GREAT WEEKEND.
>> GRANTOR PRESENTATION OF "HERE
AND NOW" IS MADE POSSIBLE BY THE
ANIMAL DENTAL CENTER OF
MILWAUKEE AND OSHKOSH, A
VETERINARY SPECIALISTS WORKING
WITH PET OWNERS AND FAMILY
VETERINARIANS THROUGHOUT
WISCONSIN, PROVIDING CARE FOR
ORAL DISEASE AND DENTAL PROBLEMS
FOR SMALL COMPANION ANIMALS.
ADDITIONAL SUPPORT FOR "HERE AND
NOW" IS PROVIDED BY THE LE
PHILLIPS FAMILY FOUNDATION.