CAT proves Governors matter

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I guess there really is a difference in political parties after all!

Caterpillar announced today that it's staying in Peoria, Illinois and even expanding its corporate headquarters in the city.

CEO Doug Oberhelman made the statement with Illinois' new Republican Governor Bruce Rauner beaming by his side. Remember it was Oberhelman who openly speculated about moving CAT out of Illinois under the previous Governor, Democrat Pat Quinn. Had Quinn, famous for jacking up state taxes in the middle of the slow recovery, been re-elected over Rauner, I doubt we would seen an event today like we did in Peoria.

Were Oberhelman and the other CAT executives just playing a little political game all along? It's certainly possible, and maybe even probable. But in business and politics, perceptions are important and so is confidence. And Rauner's pro-business, pro-jobs agenda is building confidence on the supply side.

Let's see if this turns out to be more than just a photo-op. The bet here is that it will.

Commentary by Jake Novak, supervising producer of "Street Signs." Follow him on Twitter @jakejakeny.