Christie's gutsy proposal on jobs

Businessweek reports on our Governor making a seriously hard choice politically:

New Jersey Governor Chris Christie proposed cutting benefits to the state’s more than 400,000 out- of-work residents to blunt a rise in business taxes that may be triggered by a shrinking unemployment trust fund.

Christie, 47, seeks to reduce the maximum weekly payment by $50 as joblessness stands at a 33-year high of 10.1 percent. Businesses may face tax increases averaging 52 percent if lawmakers don’t support the plan, Christie said.

“This falls into the category of things I wish I didn’t have to do,” Christie told reporters today in Trenton. “It’s not what I would prefer to do but it’s what I have to do to be a responsible steward of the finances of this state.”

The Republican governor and lawmakers have said the state fund will need a $1 billion infusion as increased joblessness and past transfers of money to finance other government operations may leave it unable to cover expenses as soon as March. Any gap may trigger increased unemployment levies under the insurance fund guidelines.

The amazing part of this decision is that Christie is weighing the downside benenfit of a $50 dollar difference in benefits against the negative business impact that might cause a local NJ business person to fire someone. I am extremely proud of the Governor because he seems to get that minor things right now are spooking business and driving the economy down. His (almost) minimalist message here is that the state is 'paying attention' and cares whether or not you (the employer) has to pay more or may no longer be able to afford the employees you currently employ.

Well done, Governor.

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