Question for Health Care reform experts

Discussion in 'Politics, Religion, Social Issues' started by Frisco, Mar 21, 2010.

  1. Frisco macrumors 68020

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    #1
    Today on Fox News they claimed if it passes that it would cost Caterpillar 100 million dollars per year.

    Reason: Reduced Government subsidies for prescriptions and treatment.

    I am just asking because Caterpillar is one of my company's biggest clients.

    But if this is true for Caterpillar it must be true for many companies.

    I don't trust Fox News, but I am also ignorant on the subject.

    All ideas welcomed!
     
  2. IntheNet macrumors regular

    IntheNet

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    #2
    I wasn't Fox making that claim but the company itself... Fox reported this:

    Caterpillar: Health care bill would cost it $100M
    http://www.chicagobreakingbusiness.com/2010/03/caterpillar-health-care-bill-would-cost-it-100m.html
    Dow Jones Newswires | Caterpillar Inc. said the health-care overhaul legislation being considered by the U.S. House of Representatives would increase the company's health-care costs by more than $100 million in the first year alone. In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan "because of the substantial cost burdens it would place on our shareholders, employees and retirees."

    Caterpillar Inc. will recoup/address those costs by terminating many of its workers and canceling some of its contracts. Perhaps your contracts may be part of this since you mention you hold them as a client. Perhaps Caterpillar Inc. may go out of business... who knows... Many other companies will do the same. These unemployment workers have Democrats to blame.
     
  3. splitpea macrumors 6502a

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    #3
    Why is the gov't currently subsidizing health care for large corps anyway, if they're not doing a thing for the rest of us?
     
  4. adamvk macrumors 65816

    adamvk

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    #4
    Don't listen to Fox news. :)

    I have caught them making mistakes many times.
     
  5. OutThere macrumors 603

    OutThere

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    #5
    Perspective: Caterpillar's 2008 revenue was $51.3 billion. I don't claim to know whether or not the $100 million claim is accurate, but even if it is, it isn't as enormous a figure as it might appear.

    Edit: Further perspective—$100 million/year extra costs for a company making $51.3 billion/year is the same proportion as if the new healthcare plan cost someone making $51,300/year an extra $100.

    Big numbers that are hard to understand are consistently used to scare people. For example: the new healthcare plan is going to cost barely more per year than what the government spends each year on military R&D.
     
  6. mcrain macrumors 68000

    mcrain

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    CAT is a union plant, and I would assume has negotiated coverage for its full-time unionized employees. The health care bill shouldn't affect that too much.

    I believe their complaint is with the part time employees. CAT has part time warehouse employees, as well as, I again assume, other part time positions. These part-time employees may now require health coverage, and if so, that may be the cost they are talking about.

    This may end up being the first pressure on corportions to hire full time employees instead of part time employees.

    For years, UPS and others have fought to keep employees labeled as part time to avoid union issues, benefit issues, etc... The cost of providing insurance to a larger pool of part time workers may be offset by merely hiring full time employees to do the same work.

    Before I would believe the $100 million dollar claim, I'd want to know how they calculated it, and if any of that amount could be reduced by hiring employees into the full-time labor pool.

    As a side note, there are other companies that hire a lot of part time employees, and CAT is the only one I've heard make this claim, so I could be very wrong. (I tried to find more information, but was unable, so that's ONLY my best guess).
     
  7. dukebound85 macrumors P6

    dukebound85

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    wait, to save money, they are going to turn down projects?
     
  8. Sdashiki macrumors 68040

    Sdashiki

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    Are you on the Board at Caterpillar?

    Id like some facts for that assumption(s) you make, though i wont hold my breath.

    I mean, jeez, you come off like a nutter when you just make up stuff that works with your personal opinions.
     
  9. stevegmu macrumors regular

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    No, they will open up factories in China and export the cheaply-made, equipment to the US.
     
  10. Peterkro macrumors 68020

    Peterkro

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    #10
    Or perhaps France,that well known Socialistic,bolshie,35hour a week,entrepreneur missing,hell hole:

    http://france.cat.com/
     
  11. stevegmu macrumors regular

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    French Cat doesn't manufacture equipment for export to the US, from what I could read.
     
  12. flopticalcube macrumors G4

    flopticalcube

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    If the Chinese are better at producing Cat equipment for less money, then that is what should happen. Every country should stick to what it does best and let others do the same.
     
  13. ucfgrad93 macrumors P6

    ucfgrad93

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    Well how about the article that IntheNet linked to? It wasn't from Fox News and it said that Caterpillar was the one making the $100 million claim.
     
  14. stevegmu macrumors regular

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    Slave labor doesn't make a better product, just a cheaper one. I can't think of anything made in China that is of better quality than the same item made in the US, Germany or japan. As much as I like Apple products, quality just isn't the same, as when they were made in Taiwan; same can be said for Sony, Boston Acoustics, and others.
     
  15. Peterkro macrumors 68020

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    They may not export much to the U.S. but a lot of Caterpillars business is in the rest of the world and a lot of that is manufactured in France.
     
  16. stevegmu macrumors regular

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    I don't see that lasting long without government subsidies.
     
  17. Peterkro macrumors 68020

    Peterkro

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    And this is different from the U.S.?
    ( by the way the $100m caterpillar is complaining about is the loss of tax rebates)
     
  18. stevegmu macrumors regular

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    No, that's the problem. I blame unions and for the loss of manufacturing in the US and Europe. Those high salaries and 35 hr work weeks will eventually drive all manufacturing from France too, unless the state is willing to subsidize industry.
    Take away incentives to manufacture in the US, and the companies will flee to China.
    $100 million now, more later and eventually they will leave.
     
  19. Peterkro macrumors 68020

    Peterkro

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    #19
    Caterpillar is a company of the past S.Korea,China and Japan are taking their business hand over fist.
     
  20. flopticalcube macrumors G4

    flopticalcube

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    That simply opens the door for someone to compete on quality but things can change too. For years the Japanese were the joke of manufacturing and quality control. They were the China of the 60s and 70s. In the 80s and 90s, they showed the Big Three and other American firms how cars and electronics should be made. China is the future in manufacturing.
     
  21. OutThere macrumors 603

    OutThere

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    For one thing: in France at least there is some incentive to keep workers in the country because healthcare is managed by the state, meaning it doesn't factor into employment decisions as it does in the US. The pressure on employers to provide healthcare in the the US makes hiring more expensive and dangerous, particularly if employee health plans must cover families. This is the subject of the thread, yes, and I won't disagree that the new healthcare plan could cause problems in this regard, though my point of perspective posted earlier still stands.
     

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