Trump had earlier claimed that the United States had been economically taken advantage of for nearly five decades, saying it was ‘ripped off’ more than any other country in history. (Picture credit: AP)
Washington: Renowned economist Jeffrey Sachs openly challenged and dismantled US President Donald Trump’s earlier claim that the United States had been “ripped off” economically for decades. The viral moment occurred during a panel discussion at the Antalya Diplomacy Forum, where Sachs responded to Trump’s previously made remarks about trade deficits and global economic exploitation.
Referring to Trump’s earlier statement, “The United States has been ripped off like no country probably in the history of the world has been ripped off for 45-50 years”, Sachs presented a contrasting viewpoint with clarity and precision.
Sachs Counters Trump’s Trade Narrative
Sachs said, “If you take your credit card and go shopping and you run up a large credit card debt, you’re running a trade deficit, with all those shops.”
“It would be pretty strange then if you blame all the shop owners for having sold you all those things. ‘You’re ripping me off, you’re ripping me off.’ That is the level of the understanding of the President of the United States,” he said.
Trump Never Made It To Second Day, Says Economist
Sachs said, “The trade deficit does not represent at all trade policies. It represents spending relative to production or earnings. We call that an identity. I teach it on the second day of my course in international monetary economics. Trump never made it to the second day.”
He said that the US trade deficit is not evidence of other countries “cheating,” but rather a reflection of America’s own tendency to spend more than it earns:
“He says, ‘You’re running a trade deficit and look, they’re all cheating me.’ But all that’s happening is that the United States is outspending its national income,” said the economist.