Peter Schiff: The Inflation Tax Jacked Up the Cost of Your Thanksgiving

Your Thanksgiving meal cost about 20% more than it did last year. Why did it cost so much more? As Peter Schiff explained in his podcast, your more expensive Thanksgiving came to you courtesy of the US government and its inflation tax.

But as Peter pointed out, it wasn’t just the Thanksgiving meal that cost a lot more. So did everything else.

What adds to the misery for typical American families is not only do they have to spend more money for Thanksgiving, but because everything else costs more, they have less money left over to spend on Thanksgiving. So, everybody is cutting back. This is all the consequence of paying the inflation tax.”

Why does everything cost more?

Because the government spends more. But they didn’t raise taxes to pay for that spending because the government didn’t want the voters to know that all the stuff they were getting from government they had to pay for. They wanted to pretend they could get it for nothing, or that somehow, the rich would pay for it. But the rich aren’t paying for it. The middle class and the working poor are paying for it. But they’re not paying for it honestly through increased legitimate taxes. They are paying for it dishonestly through the inflation tax.”

Nothing that government does is free.

The inflation tax is the primary way the US government finances its deficit spending. The federal government spends billions of dollars every month, but it doesn’t collect enough taxes to cover its costs. That means it has to run deficits. The Federal Reserve monetizes those deficits. In effect, it prints money. They call it quantitative easing, but when you boil it all down, they’re just inflating the currency. As the money supply grows, prices rise and you feel the pain every time you go to the grocery store or the gas station. The government is getting bigger and bigger, and families across America are bearing that burden through higher prices.

The government loves the inflation tax because it never has to accept responsibility for levying that tax. It can blame it on all kinds of other factors like corporate greed, the pandemic, or “Putin’s price hikes.”

Then what does government do? It says, ‘Oh, now we need more laws and more regulations to protect the public from inflation.’ Government is the source of all this inflation, yet the government uses the inflation it creates as a springboard to even more government power.”

After Thanksgiving, Americans dove into Black Friday.

Americans are supposed to go out and buy stuff. And this is considered economic activity in the United States – the fact that we go out and buy things. Most of the stuff that Americans buy for Christmas, we didn’t make. All this stuff is imported. So, it’s only possible because of the economic growth outside of the United States, not inside the United States. All we’re doing is creating money, and we’re exporting our inflation to the rest of the world in exchange for their goods.”

Peter recorded this podcast in Dubai. He went on to explain how that country is an example of what capitalism can create.

In this podcast, Peter also talked about how the mainstream will continue to ignore gold stocks and the fact that more fraud happens under regulation than without.