Governor Bobby Jindal Kinda Sorta Declines Stimulus
He’s taking the money for the “shovel ready” projects, but he’s turning down the expanded unemployment benefits.
“Today, Governor Bobby Jindal announced that the state will not change its law to use a part of the $787 billion federal stimulus bill that would result in an unemployment insurance tax increase on Louisiana businesses. The Governor also announced that the state will use a provision in the legislation to increase state unemployment benefits for recipients by an extra $25 per week, and reaffirmed his acceptance of the transportation funds included in the bill to fund shovel-ready transportation priorities in the state.”
Undoubtedly a good move, if only a partially, for Jindal. Remember that while the stimulus bill may fund expanded unemployment entitlements now, eventually that federal money is going to dry up and the taxpayers of Louisiana would be left footing the bill. Jindal turning down means less future tax burden for his constituents, even if he substituted his own mini-expansion of unemployment entitlements in its place.
It’s worth noting that expanded unemployment benefits usually mean more unemployment. Unemployment in Europe, where unemployment benefits dwarf those available in America, typically lasts a good deal longer than in the United States. Because with plentiful benefits available, workers can afford to wait a lot longer before the need to work becomes pressing enough to force them back into the job market.
It may sound cruel, but there’s no denying fact. The more comfortable you make the unemployed the less likely they are to get back into the job market. Meanwhile, the more people we have collecting unemployment benefits the more burden workers and businesses must carry.
To be perfectly blunt, the expansions of unemployment benefits in the “stimulus” are going to do the exact opposite of stimulating the economy. They’re going to further stagnate the economy.
But hey, we did the nice thing, so it’s ok right?



