The American Dream has long symbolized the possibility of prosperity and upward mobility for all citizens. Yet, new data from the Commerce Department highlights a concerning economic trend. The United States has fallen behind its global trading partners, with the trade imbalance swelling to a record $131.4 billion in January. This represents a 34% increase from the previous month and nearly double from a year ago.
Concurrently, the U.S. faces a substantial fiscal deficit, with the budget already $840 billion in deficit through just the first four months of fiscal 2025. The deficit's share of gross domestic product stands above 6%, a figure rarely seen in a peacetime, expansionary economy. Amidst these challenges, Treasury Secretary Scott Bessent has taken a firm stand on the White House's trade policy, defending it against criticisms.
"Access to cheap goods is not the essence of the American dream."
- Scott Bessent
Bessent insists that the focus of trade policy should extend beyond merely obtaining low-priced items from abroad. He explains that tariffs serve multiple purposes: they act as a revenue source, protect industries and workers from unfair practices, and function as a negotiating tool in international trade discussions.
The Trump administration, according to Bessent, is willing to employ strong measures to achieve its trade objectives. Bessent emphasizes that tariffs are not merely about economic protectionism but are integral to enforcing fair trade practices globally.
"To the extent that another country's practices harm our own economy and people, the United States will respond. This is the America First Trade Policy."
- Scott Bessent
Furthermore, deregulation is under consideration by the administration, with a particular focus on banking regulations. Bessent highlights the burden imposed on smaller institutions by regulations that do not necessarily enhance safety. This examination aims to alleviate unnecessary constraints that hinder economic growth on Main Street.