Peter Schiff Slams JD Vance's 'Cheap Labor' Remarks: Globalization Hollowed US Industry, But Kept Prices In Check, Says Renowned Economist
Peter Schiff, a renowned economist and financial commentator, has expressed his views on the impact of reversing globalization and hinted at a potential presidential run in 2028.
What Happened: In a detailed thread on X, Schiff referred to Vice President JD Vance‘s address at a recent AI summit, where Vance called ‘cheap labor’ a drug for American industries, criticized it for restraining innovation and stated that President Donald Trump intends to roll back 40 years of globalization.
According to Schiff, while globalization has led to the hollowing of America’s industrial base and the decimation of the middle class, it has also kept consumer prices in check and funneled inflation into financial markets. This, he says, has created an illusion of economic growth.
Schiff warns that the public, investors, and the Trump administration are unprepared for this economic shift. He predicts that the administration will resort to fiscal bailouts, aggressive rate cuts, and quantitative easing programs from the Federal Reserve.
However, Schiff believes that these measures will not have the desired effect. Instead, he suggests that the economy will “overdose” on these policies, leading to a potential economic crisis.
Why It Matters: The post aligns with Schiff’s bearish outlook, echoing his 2023 recession warnings, and reflects market concerns as the S&P 500 dipped into a correction in March 2025 amid uncertainty over Trump’s tariffs.
He hopes that the crisis occurs early enough in Trump’s term for a Republican Congress to make necessary cuts to government spending and regulations. This, he believes, would allow for the revival of free-market capitalism. Schiff also warned that if it happens late in Trump’s term, a radical left Democratic party could gain power in 2028, threatening the capitalist system and embracing socialism.
The economist also hinted at a possible presidential run in 2028, stating that the election could be a defining moment for the nation’s future. “…the 2028 election may end up being the defining moment of our nation’s future. I may throw my hat in the ring,” stated Schiff.
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