Politics: Schock says stimulus has failed to help Caterpillar
Press release:
MASSIVE GOVERNMENT STIMULUS HAS NOT HELPED CATERPILLAR AS PROMISED
Schock: While the stimulus bill has not helped workers, it has saddled them and their children with mindboggling additional debt.
Washington D.C. – A little more than a month after passage of the President’s economic stimulus bill, it has become reality that the hype and promises Caterpillar would not proceed with planned layoffs and rehire laid off workers if Congress passed the stimulus bill was inaccurate.
Congress did pass the stimulus bill and the President got everything he wanted from Congress. Yet, today Caterpillar announced even more layoffs. These additional layoffs confirm CAT workers were misused by the Administration as justification for the stimulus bill.
“These additional layoffs are a result of the on-going recession,” said Schock. “Sadly, the false hopes that passage of the stimulus bill would enable them to keep their jobs are now a horrible letdown. I opposed the stimulus bill because only 6 percent of this massive bill was for infrastructure. I supported legislation that would have created twice the jobs at half the price, and included more funding for infrastructure that would have increased the demand for Caterpillar machinery.”
“In my speech against passage of the flawed stimulus bill, I said ‘this bill is too big to get it wrong,’ but these layoffs are another sign that they did get this bill wrong,” continued Schock. “As a result, we have little increased infrastructure construction, more layoffs, dashed hopes, massive wasteful spending and vastly increased debt.”
“I will join the President and colleagues in Congress if they are willing to embark on a sensible agenda that would lead to economic growth,” Schock concluded. “The challenges we face are too important not to.”
March 17th, 2009 at 4:47 pm
Well Duh! The stimulus or “porkulus” bill was never going to benefit any real cause or help the everyday joe out there. It’s Tea Party time!!!!!
March 17th, 2009 at 5:02 pm
Where and when?
March 17th, 2009 at 5:27 pm
“These additional layoffs are a result of the on-going recession,” said Schock.
So true.
So does Aaron really think that the stimulus bill, flawed and flabby as it is, would somehow magically make the worst economic recession since the Great Depression just go away? I mean come on. It took years and years of fiscal mismanagement almost to the point of criminality to get us where we are. And Aaron blames President Obama because he hasn’t fixed it in 60 days?
Please. Give the man more than a couple of months before we start massing to collectively leap off the cliff.
Nothing more than partisan politics as usual.
March 17th, 2009 at 5:28 pm
Congressman Hottie, er, Hothead -
I know you are very young, and patience is a virtue that comes with age. You expect the stimulus to turn the economy around in one month?
Luckily, Obama is patient and sensible, qualities that you have not yet developed.
We won’t know if Obama “got this bill wrong” for at least a couple of years. Maybe much longer.
March 17th, 2009 at 6:11 pm
And so, just what is YOUR plan that will lead all to be “willing to embark on a sensible agenda that would lead to economic growth”. No where have I seen it written or heard it say that business, individuals or the economy would have a magical rebound in a month.
March 17th, 2009 at 6:18 pm
Well done, Aaron. According to your timetable, this economy better be completely turned around by what, June?
Go lift some weights.
March 17th, 2009 at 7:22 pm
This statement is of no consequence, it is simply Aaron’s ongoing attempt to appear relevant. That’s hot.
March 17th, 2009 at 8:01 pm
Aaron was not the one who said the spendulus package would stop the layoffs at CAT. Obama was.
March 17th, 2009 at 9:31 pm
Ramble On,
Congressman Schock supported alternative legislation to the stimulus bill that passed.
“I opposed the stimulus bill because only 6 percent of this massive bill was for infrastructure. I supported legislation that would have created twice the jobs at half the price, and included more funding for infrastructure that would have increased the demand for Caterpillar machinery.” That is a pretty clear alternative view to President Obama.
No where in his comments did Congressman Schock say there would be “a magical rebound in a month ” as you said in your post. Congressman Schock simply disagrees with the hurry up and just do it approach of the new administration.
And I disagree with the opportunistic approach the current administration is pursuing to advance a shift to a socialistic response to current, and future, market conditions. It is simply a fundemental public policy debate. I am thankful Congressman Schock is addressing serious concerns and serious issues with thoughtful and insightful public comments.
March 18th, 2009 at 4:54 am
“Congressman Schock simply disagrees with the hurry up and just do it approach of the new administration. ”
As opposed to the well thought out bailout of Wall Street by the previous administration. I think the plan was “We need this money by Friday. There’s not a lot of time for questions.”
March 18th, 2009 at 7:57 am
He can repeat the GOP talking point cue card. Let’s all give the young man a round of applause.
What did Cat have to say? “What we’ve said consistently is that the stimulus plan is not a light switch that can be turned on and suddenly turn things around. It will take time” Seems to run a bit contrary to the GOP talking points. Nor has the Obama administration suggested that the stimulus would be an ‘instant’ rebound. It is the GOP that is pushing the impatience.
I just don’t see Cat being too thrilled with Schock atm, he seems to want to be part of the problem and not part of the solution.
March 18th, 2009 at 8:13 am
tulip said: “You expect the stimulus to turn the economy around in one month?…We won’t know if Obama “got this bill wrong” for at least a couple of years. Maybe much longer.”
Well, then you pretty much just rationalized the layoffs. You really can’t expect a company to keep people on the payroll if they’re not going to have any work for them to do “for at least a couple of years” or “maybe much longer.”
Seriously, what part of “I supported legislation that…would have increased the demand for Caterpillar machinery.” do you not understand?
If the writing’s on the wall, and all signs point to lower sales for the foreseeable future, then you adjust accordingly. As sucky as that is. On the other hand, if you know that increased sales are just around the corner, then you can justify carrying the cost of employees, because you know they’ll have plenty of work to do in the near future.
March 18th, 2009 at 8:40 am
Remember folks, the ‘Stimulus’ bill passed with the ‘Buy American’ provision intact, which hurts Caterpillar. Aaron Schock didn’t exactly do a whole lot to try and remove that provision, preferring instead to play the role (along with fellow Republicans) of a modern day Achilles.
March 18th, 2009 at 7:10 pm
Right. I do not believe you can link the stimulus bill with CAT layoffs. That would be idiotic.
March 19th, 2009 at 9:47 pm
I was stunned when Obama said what he said on Feb. 11, 2009, about CAT halting layoffs and their CEO”s promise to rehire laid off workers IF Congress passed the stimulus bill.
Many of you miss the point about the stimulus having a chance to work. Again, on that date in February of this year Obama said all CAT needed was the confidence of the future sales that the stimulus would generate to stop layoffs and rehire laid off workers.
Obama did not say CAT said they would stop layoffs and start rehiring workers AFTER months or years of Congress passing his stimulus bill. He said the opposite. Now he is being held to account for his false hype, generating of false hopes and false statement of what Owens said . Obama said the confidence that passage of the stimulus bill alone would start the economy growing justified CEO Owens promise of immediate action to stop layoffs and start rehiring.
Markets react all the time to ANTICIPATED events. Gas and crude oil prices go up and down with world events. The stock market factors in Federal Reserve interest rate changes way ahead of time. The market also factors in many other things way in advance.
That is what Obama played on…that ALL it would take is for Congress to pass his stimulus bill. That is what he said. Doubt it? Then look at the media coverage on February 11th and 12th.
Obama was fast and loose with the facts to create hype in favor of his stimulus bill.
In saying that, he used it as extra pressure on Schock to vote for the bill. Obama called on CAT workers in the audience in East Peoria to speak with Schock after Obama’s speech to urge him to vote for the stimulus. That was powerful coming right after the President said CAT CEO Owens promised him that mere passage of the stimulus bill would stop the layoffs and he went on to say that Owens promised him CAT would start rehiring laid off workers IF Congress passed the bill.
Are you all forgetting that?
Obama absolutley and purposefully led people to believe that the mere passage of the stimulus would stave off more layoffs and that he obtained a promise from Owens to begin re-hiring the workers they already laid off.
Owens was so embarrassed in having what he said to Obama badly twisted that he corrected the record in a press conference later that same day, saying they would be laying more people off long before they could start rehiring. Check the news of Feb 11, 2009. Obama exaggerated so much that CAT was compelled to correct the record in a press conference that was awkward for CAT.
So Cat and Schock called Obama out on it right away. The White House did not admit they made a false promise. Now it is clear Obama was wrong and CAT and Schock were right.
March 20th, 2009 at 8:46 am
Sage,
Let’s not confuse Schock with Owens & Caterpillar, they most certainly are not on same page.
I too was surprised Obama said what he did, more because I knew Cat had never made that claim, at least publicly, and very unlikely privately.
Optimism does play a powerful influence in markets. Maybe that is what Obama hoped to cast, but he fumbled it badly.