Despite White House and media spin downplaying a recession, a lot of people aren’t buying. Fifty-seven percent of small business owners say a recession has already begun. Peter Schiff talked with Laura Ingraham about government spending, taxation, inflation, household debt and the recession. He said the recession is already worse than people think.
Congress has put the finishing touches on another big spending bill, Orwellianly titled the “Inflation Reduction Act.” Peter said it’s important to remember every dime the government spends constitutes a tax.
Spending is taxation because all of that spending has to be paid for.”
Piling a bigger tax burden on an economy already in a recession is a bad plan. And Peter said the recession is a lot worse than people think already. He pointed to the recent report showing that household debt has surged to a record $16.15 trillion. Credit card debt alone expanded 13% year-over-year.
You know, American families have taken on $2 trillion of debt just since the pandemic. But worse, the national debt has increased by $8 trillion during the same time period. American households are responsible for paying that debt, but they’re already drowning in their own debt. Credit card debt just rose by the most in 20 years, and that’s because Americans are having to put their groceries on their credit cards because they’re taking unprecedented pay cuts [in real terms] in a very weak labor market.”
As far as the new government spending goes, Peter said America can’t afford it.
We need cuts in government spending. That’s why we have so much inflation. Because we’re spending so much money, and the Federal Reserve is printing money because Congressmen don’t have the integrity to actually ask the American public to pay for all the spending. So, they make them pay secretly through inflation. But now, the inflation is so great that it’s already pushed us into recession. And so now, Americans are going to be suffering the worst of both worlds. We’re going to have high inflation and recession at the same time. And the policies of the Biden administration are going to make inflation and the recession worse.”
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