Renowned economist and gold enthusiast Peter Schiff has issued a warning about the US economy, stating that it is facing a period of stagflation in which high inflation and high unemployment will both be present. In an interview with Fox News, Schiff explained that inflation had actually increased in Q1 of this year, despite a weakening economy. He described this as the worst of both worlds and predicted that the situation would only worsen in the future.
Low-Paying Jobs and Lost Income
Schiff’s comments were in response to a recent opinion piece by Nobel laureate Paul Krugman, who argued that the US economy was in better shape than many people believed. Schiff disagreed, noting that the jobs that had been created were predominantly low-paying service sector positions. He claimed that during the Biden presidency, people had lost high-paying jobs with benefits and had been forced to replace them with two or three low-paying part-time positions. Schiff argued that this was the only reason that jobs were being created, and that the situation was unsustainable.
Concerns Shared by Other Experts
Schiff is not the only expert to express concerns about stagflation. Former US Treasury Secretary Larry Summers has also warned of a “stagflationary problem” developing in the economy. Quincy Krosby, the chief global strategist for LPL Financial, has claimed that financial markets doubt the Fed’s ability to restore price stability and avoid a repeat of 1970s-style stagflation.
Inflation and unemployment are both on the rise in the US economy, leading experts to warn of the possibility of stagflation. Schiff has argued that the situation is unsustainable, with people losing high-paying jobs and being forced to take on multiple low-paying part-time positions. Other experts have also expressed concerns about the economy, with many doubting the Fed’s ability to restore price stability and avoid a repeat of the stagflation crisis of the 1970s.