Trump Commerce Secretary Unwittingly Points to the Great Depression When Being Grilled Over Trade Deficits
Trump Commerce Secretary Howard Lutnick testified before the House Appropriations Committee this week and was grilled by Rep. Madeleine Dean (D-PA) on his knowledge of trade deficits and where the trade deals stand.
Dean pulled no punches in her assessment of Lutnick, beginning, “I fear the administration lacks a basic understanding of what a trade deficit is.”
“I think many economists take issue with equating a country’s trade deficit with any one country and its economic well-being. Some economists actually view a trade deficit as a sign of a country’s economic health because it means we’re purchasing more. For me, I have a pretty large trade deficit with my local grocer or my hairdresser. It’s a good thing. It means I have money enough to get my hair done once in a while, and to keep food on the table. It tells nothing about my overall financial position. Do you know when this country actually had a trade surplus, Secretary?” she asked.
“The president likes to speak about before–” replied Lutnick as Dean cut in, “Historically when did we have a trade surplus? That’s it. I’m not talking about the president historically.”
“I think early, about a hundred years ago,” Lutnick replied.
“It was the Great Depression. It was a sign of what was going on. It was during the Great Depression,” Dean replied, agreeing with Lutnick.
“That’s a direction none of us wants to go. Tariffs. It’s 90 days. We’re going to have 90 deals in 90 days, then there’s a 90-day pause. Many of these tariffs, as they say, are punishing. Tariffs on things that make no sense whatsoever. Where are we going to go with the remaining deals? I know of one deal that has been apparently resolved with the United Kingdom. We got 89 more deals to do in just a few more days. Where are we on those deals?” Dean pressed.
“We are in the midst of negotiations with dozens and dozens of countries. We could sign deals, but they’re only going to get better as we negotiate them,” Lutnick replied.
“That’s just simply not true, because as I told you, the American—” Dean hit back.
Lutnick interjected, “Actually, I promise you it’s true because I’m doing it, so I promise you it is true and I’m here testifying in front of you and I promise you it’s true.”
“And, Mr. Trump promised to bring down the cost of goods day one, and what he has done through his trade deficit fixation and his tariff chaos has nakedly increased the cost of goods. The estimates are that for consumers in my area, suburban Philadelphia, $2,000 at least a year increases on goods,” Dean insisted, before laying into Lutnick over the price of bananas.
Watch the clip above via C-SPAN.
