The Bredesen Quandary

Tennessee Governor Phil Bredesen is concerned Tennessee's unemployment insurance program will soon be strapped for funds and is going to raise the state unemployment insurance tax to address this, which is absolutely the worst action the Democrat can take at a time when businesses are operating on ever smaller profit margins or increasingly as is the case, running in the red. In a climate, where many companies, large and small, are on their last legs, this tax increase may be the straw that breaks their back. Even if the businesses survive, they may have to layoff workers to pay the new unemployment tax increase. Bredesen's reasonable fear that unemployment will rise will thus become self-fulfilling prophecy.