Note to the Trump White House: $55 billion dollars is not a small deal. At least, it isn’t to most people in this country. Dismissing it with a wave of the hand is how you get branded as being out-of-touch and tone-deaf (What sort of person sniffs at $55 billion?).
President Trump’s call for a trade war with China is dubious enough as is. Shrugging at its projected economic downside (i.e. the loss of billions of dollars) is just boneheaded.
Say hello to Commerce Secretary Wilbur Ross, who did exactly that Wednesday when he told CNBC that the tariffs China announced in response to the trade war wouldn’t really hurt the U.S. because it amounts only to “about three-tenths of a percent of our [gross domestic product].”
“So, it’s hardly a life-threatening activity,” he said.
For those of you playing at home, three-tenths of a percent of the U.S. GDP, which stands at around $18.57 trillion, comes out to approximately $55 billion. This is obviously not an insignificant amount, and trying to play it off as “no big deal” is about as oblivious as when Democratic lawmakers and their allies in the press pooh-pooh’d the wage increases and bonuses generated by tax reform.
The image of Ross, whose personal net worth is in the ballpark of $700 million, waving off $55 billion is no less ridiculous than when House Minority Leader Rep. Nancy Pelosi, D-Calif., herself a millionaire many times over, characterized tax-reform-related benefits as “crumbs.”
But wait! There’s more!
Ross added Wednesday that China’s “response should not surprise anyone,” saying further that there was no way the Chinese “would do nothing” in response to U.S tariffs.
“I’m frankly a little surprised that Wall Street was so surprised by it. This has been telegraphed for days and weeks,” Ross said, adding that the president is a “lifelong dealmaker” and that China’s tariffs aren’t the “first controversy he’s gone into.”
“This is not World War III,” he concluded.
Well, that’s reassuring. Hopefully Trump’s top economic adviser, longtime economist, and CNBC host Larry Kudlow will act as a calming, moderating voice for this administration.
Then again, here’s what he had to say Wednesday about China’s tariff announcement: “Don’t overreact, we’ll see how this works out. … At the end of this whole process, the end of the rainbow, there’s a pot of gold.”
Forget everything I just said. Abandon hope all ye who enter and all that.
