"Employees would be paid before bankers if a business goes bankrupt under a bill introduced this week by Sen. John Lehmann, D-Racine."
Sounds great at first but let us think this one through. Lehmann's bill would make lending to businesses a more risky proposition. Banks tend to be conservative lenders, insisting on such things as collateral. If loaning to businesses becomes unacceptably risky for banks, they will invest elsewhere. In other words, Wisconsin businesses will not have the same access to capital relative to businesses in other states. This will put Wisconsin businesses at a competitive disadvantage. With less access to capital, more Wisconsin businesses will more likely go bankrupt.
Will this be a good thing for Wisconsin's workers?