Peter Schiff Blasts Trump’s Inflation Argument for Paying Down $40 Trillion Debt: ‘A Default With Better PR’

Economist Peter Schiff criticized President Donald Trump’s argument that inflation could help reduce the burden of the nation’s growing debt, calling the approach "a default with better PR."

Schiff Challenges Trump’s Inflation Strategy

On Sunday, in a post on X, the economist wrote, "Paying off the debt with inflation isn’t paying it off. It’s a default with better PR."

In a clip from The Peter Schiff Show, Schiff criticized the idea that inflation could rapidly reduce the government’s debt burden.

"Inflation is a good thing and one of the reasons it’s a good thing is because it’s going to pay down our debt," he said, describing the argument he attributed to Trump.

Schiff questioned why the government would continue accumulating debt if inflation was expected to address it.

"Why keep racking it up?" he asked. "Why wait for inflation to do your job? Do your job yourself."

Schiff argued that the government could address the debt by cutting spending and working with Congress to reduce expenditures. He also criticized Trump’s previous statements blaming former President Joe Biden for inflation.

The Economist said inflation works with a lag and argued that policies implemented during Trump’s first term contributed to inflationary pressures that Biden later inherited.

He also acknowledged that Biden contributed to the buildup of the problem during his presidency.

Paying off the debt with inflation isn't paying it off. It's a default with better PR.

Full episode: https://t.co/IJCOEVb8gI pic.twitter.com/GywjXRBiSr

— Peter Schiff (@PeterSchiff) October 5, 2026

Schiff Blamed COVID-Era Spending

Schiff said Trump’s role in inflation and the affordability crisis stemmed from his first-term approval of massive deficit spending during the COVID-19 pandemic, rather than the war with Iran

Debt and Growth

Last month, economist Michael A. Peterson warned that the U.S. national debt had surpassed $40 trillion, calling the debt burden an urgent problem that was "stealing from our next generation."

He said rising interest costs and persistent deficits were hurting the economy, wages and affordability.

Treasury Secretary Scott Bessent said the U.S. could grow its way out of debt if the economy sustained 3% annual growth while spending was controlled.

He said the U.S. had a spending problem rather than a revenue problem and was working with OMB Director Russ Vought on a plan to reduce the deficit.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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