As President-elect Donald Trump prepares to take office, leading economist Peter Schiff warned on Newsmax on Tuesday of the looming economic challenges he will inherit.
In the middle exterior Schiff said on “Newsmax New Year's Eve with Sean Kriseman” that issues within the U.S. economy were largely ignored by investors, which contributed to Trump's election victory. The economist proposed drastic measures in the face of this turmoil, including deep cuts to government spending, entitlements and defense spending.
“I think Trump would be a better choice than Harris,” Schiff said. “The reason Donald Trump won is because the economy is in turmoil, and unfortunately it will be even more turbulent with Trump in power.The situation will get even worse and the market could fall even further. I think there is.”
Mr. Schiff proposed deep cuts in government spending.
“They didn't start with Biden. Things have gotten much worse under the Biden administration, but we need deep cuts in government spending, not just waste, fraud and abuse, but we also need real cuts in entitlement and defense spending. “There is,” Schiff said. “Unfortunately, we need higher interest rates, which means we need the stock market to fall much more. It will take a deep recession to correct these imbalances, with significant short-term pain. We can't get to where we want to be without it, and unfortunately, no one was ready for it, and Donald Trump didn't campaign on it.”
Schiff also said economic hardship is underreported, including the highest credit card delinquency rates since the 2008 financial crisis.
“I think we've been in a recession for at least a year. I think the media and the government have been lying. I mean, that's why Trump won. If you look at the news, just the other day, I think the credit card delinquency… is the highest since the 2008 financial crisis,” Schiff said. “It was all part of a big lie, but voters weren't convinced by it. They voted for Trump.”
Last week, Kentucky Sen. Rand Paul released a report identifying more than $1 trillion in government waste last year. His 2024 “Festival” report, which details frivolous spending such as a pickleball facility in Las Vegas and an on-ice cabaret show, marks a decade of such annual reviews. (Related article: 'It makes no sense': President Biden's national security adviser says he's funneling workers' tax dollars to Marxists)
Throughout Biden's tenure, Americans grappled with rising costs, with inflation reaching a high of 9.1% in June 2022. Inflation has subsided somewhat since then, but the Consumer Price Index, which tracks the cost of everyday goods, is still showing an annualized rate of 2.7%. According to the announcement in December, there was an increase in November compared to the previous year. report From the Bureau of Labor Statistics.
Experts say the spike in inflation is related to high government spending during the Biden-Harris administration. US Treasury fiscal data as of last week reported The national debt is $36.16 trillion.
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