Peter Schiff: Biden Brags About Raising Taxes 

This week Peter’s back to discuss new economic data, Powell’s recent remarks in the Netherlands, and the Biden administration’s new tariffs. More and more signs point to economic stagflation, but Biden, Powell, and their cronies continue to deflect the blame and increase everyday Americans’ taxes.

The Dow may have traded above 40,000 this week, but that doesn’t necessarily mean Americans are wealthier:

“Inflation creates an illusion of prosperity, an illusion of wealth. That’s another reason that government loves inflation so much. They’re really partners. The government derives all sorts of hidden benefits from inflation, but it never wants to admit this. It never wants to say this out loud. But everything the government does is supported by inflation. … They kind of worship inflation, but they never speak its name— not in the context of what they’re using it for, right? And so when the public gets upset that prices are rising a lot and their living standards are falling, then the government will talk about inflation. But it’ll talk about it as if it’s this exogenous event that is completely beyond their control.”

Contrary to what progressives believe, inflation is not a result of capitalism:

“Everything is more expensive because of the government debasement of our money. That’s why we have inflation. It’s not an accident, and it’s not a natural byproduct of capitalism. Capitalism does the reverse! I’ve pointed this out, but the CPI from 1800 to 1900 lost 50% of its value. Prices fell for a hundred years! That’s what capitalism does. Now in the following hundred years, prices skyrocketed. That’s what socialism does. That’s what government does. That’s what central banking does.”

Wednesday’s inflation report was not as bad as expected, although rising prices in industrial metals beg to differ:

“As everybody is talking about, ‘Hey, we got this great inflation news,’ copper is telling you that inflation is not good. It’s bad. So I’d rather believe the market than the Fed telling us inflation is under control. … Look at copper— “Dr. Copper”— it’s telling you that inflation is anything but under control.”

New data on retail sales, manufacturing, and housing permits all point towards a slowdown in the economy:

“That’s the sign of a weaker economy. Why are they building fewer homes? Because Americans can’t afford to buy them. They don’t have the purchasing power, and mortgage rates have gone up. But of course, if we’re not going to be adding to the supply of houses, then the housing shortage is going to continue.”

Peter pivots to tariffs, the big political news of the week:

“[Biden’s] announcing them like he’s delivering good news, like, ‘Hey, I got great news, everybody! We’ve got these tariffs.’ The tariffs are taxes! Higher tariffs mean higher taxes. … Who wants to hear that? And these are not, ‘Oh, we’re going to tax the rich.’ No, no, these are not the taxes that fall on the rich. In fact, the rich couldn’t care less about these tariffs. It’s the middle class or the poor that are going to pay these tariffs. And that’s Biden’s base, right? That’s who he’s playing to. That’s the votes that he wants. And he’s telling his own people of raising your taxes, except he’s not putting it in those words. He’s lying.”

The new tariffs are a textbook case of government regulation contradicting other government regulations. None of it makes any sense:

“Biden likes to pretend, ‘Oh, we’re all about the environment. We want people to go solar.’ 50% tariffs on solar panels— 50% percent! People are supposed to be converting to solar. You know, there’s all kinds of tax credits. You invest in solar panels, you get a tax credit. So the government is subsidizing people for using solar power. Tesla gets subsidies for selling battery powered cars. The government is paying Americans, and they’re trying to encourage them to use solar power. Yet we now want to impose taxes on them when they do it. You want to buy solar panels? Now the government is going to drive up the price of the very panels it’s subsidizing you to buy. … Government has two policies at cross purposes.”

Jerome Powell spoke in Amsterdam this week and gave an alarming look into his naivete:

“Powell basically said, ‘No, I have no regrets, nothing. I wouldn’t change anything. We did everything right.’ … If that’s truly what Powell believes, then there’s no hope of them solving any problems that they clearly don’t understand. Powell has no idea where inflation comes from. So how is he going to get rid of it?”

The simple fact is that the economy is too complicated for any man or institution to plan. Tariffs, central banking, and tax credits only serve to distort and manipulate economic incentives for the interests of those in power. Powell and Biden illustrate this perfectly.