Obama predicts big things for stimulus

PEORIA, Ill., Feb. 12 (UPI) -- President Barack Obama told workers in hard-hit Peoria, Ill., Thursday that good things will happen once his U.S. stimulus package becomes law.

Heavy equipment manufacturer Caterpillar Inc. is laying off more than 22,000 workers, many of them in the Peoria area. But Obama said better times are coming.

"Once Congress passes this plan and I sign it into law, a new wave of innovation, activity and construction will be unleashed all across America," the president said, citing energy initiatives, school upgrades and an improved healthcare system.

"Rebuilding our crumbling roads and bridges, repairing our dangerous dams and levees so we don't face another Katrina -- think about all the work out there to be done," the president said. "And Caterpillar will be selling the equipment that does the work."

Obama touted the plan's middle class tax cuts and extension of unemployment benefits.

"We've got to spend some money now to pull us out of this recession, but as soon as we're out of this recession, we've got to get serious about starting to live within our means, instead of leaving debt for our children and our grandchildren and our great-grandchildren," he said.

Obama repeated an assertion he had made Wednesday that if Congress passes the stimulus plan, Caterpillar "be able to rehire some of the folks who were just laid off." However, ABC News reported Thursday that Caterpillar Chief Executive Officer Jim Owens -- who supports the stimulus legislation -- said it would "take some time" for the stimulus package to lead to hiring at the company.

"The truth is we're going to have more layoffs before we start hiring again," he said.

Owens said the stimulus plan is "a little light on the heavy construction."