During a House Appropriations Committee hearing, Commerce Secretary Howard Lutnick faced tough questioning from Rep. Madeleine Dean regarding the administration's grasp of trade deficits. Dean criticized the tendency to link trade deficits too closely with national welfare, arguing that trade deficits might denote economic vitality. Their discussion highlighted historical trade surplus periods and raised concerns about ongoing tariff impacts. While Lutnick acknowledged ongoing negotiations for trade deals, Dean's insistence on the administration's misinterpretation of economic indicators underscored significant policy challenges ahead.
"I fear the administration lacks a basic understanding of what a trade deficit is. Many economists view it as a sign of economic health because it means we're purchasing more."
"Historically, when did we have a trade surplus? That's it. I'm not talking about the president historically. It was the Great Depression...that's a direction none of us wants to go."
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