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Wednesday, March 04, 2009

Rendell: Unemployment Benefits will Cost State

As we have noted previously, the federal stimulus includes an increase to unemployment compensation that would also drive up state costs, and leave states on the hook once the federal stimulus money runs out.

Governor Rendell admitted that "I'm not sure over the long run, we can cope with the higher unemployment compensation standard" (here is that snippet, in a House GOP video bashing Rendell), but plans on taking the money anyway. The Morning Call has more on the costs of that provision to Pennsylvania.

On Hardball, Rendell explains his acceptance - it is kindness; he just can't deny higher and expanded unemployment benefits based on the need to balance the state budget. Obviously, the forgotten man in this is the taxpayer, forced to pay more in unemployment taxes (or other taxes) to foot the bill.

This is the nanny state mentality at work - whether it be raising the minimum wage, expanding government health care, more "economic development" spending, growing welfare rolls, Governor Rendell ignores the costs: lost jobs, higher costs to consumers and businesses, higher taxes, lower wages, less freedom, and more dependence on government. His intentions may be acts of kindness, but the effects of these policies are cruel.

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