Peter Schiff Warns Economic Decay Under Trump Threatens GOP and Risks ‘Democratic Socialist’ 2028 Victory
Economist Peter Schiff warns persistent inflation and national debt risk GOP defeat in upcoming elections.
Mounting economic dissatisfaction risks opening the door for a “real Democratic socialist” to capture the White House in 2028 as fiscal conditions degrade, economist Peter Schiff warned during an Aug. 19 interview with Fox News Digital, evaluating current economic health as “worse” than when President Joe Biden stepped down last year.
Framing the downturn as an existential political threat to the ruling party, Euro Pacific Asset Management chief economist and global strategist Peter Schiff asserted that the deteriorating U.S. economy leaves the nation vulnerable to a radical ideological shift in the 2028 presidential election.
President Donald Trump is “unpopular because the economy is worse now than it was when Biden left office,” Schiff, who serves as chief economist and global strategist of Euro Pacific Asset Management and hosts “The Peter Schiff Show” podcast, told Fox News Digital during an interview on Wednesday.
“So Trump ran promising to fix what Biden broke,” but ultimately “broke it more,” Schiff asserted.
“He said that prices will come down on day one as soon as I become president,” Schiff stated, emphasizing that “inflation is a bigger problem now than it was when Trump was elected.”
Fox News Digital reached out to the White House on Thursday.
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Left: Peter Schiff during the London Blockchain Conference at The Queen Elizabeth II Conference Centre on June 2, 2023 in London, England; Right: U.S. President Donald Trump gestures as he boards Air Force One on Aug. 9, 2026 at Morristown Airport in (Left: Eamonn M. McCormack/Getty Images for London Blockchain Conference; Right: Eric Lee/Getty Images / Getty Images)
Even with Republicans commanding majorities in both houses of Congress, Schiff projected that the GOP will surrender numerous House seats in this year’s midterm elections and warned they “have a real chance of losing the Senate too.”
Schiff predicted the party will lose control of the Senate by 2028 if its majority survives until then, while forecasting a Republican defeat in the 2028 presidential race as well, cautioning that “the real threat” facing the nation is the election of “a real Democratic socialist” to the presidency.
Schiff, who participates in precious metals distribution through SchiffGold, recommended that individuals allocate capital into physical bullion. “Buy real money. That will preserve its purchasing power,” he said.
Historically, physical gold and silver serve as defensive safe havens during cycles of currency debasement and persistent price expansion, offering investors tangible capital preservation when monetary expansion undermines fiat purchasing power.
HOW MUCH HAS THE NATIONAL DEBT GROWN UNDER PRESIDENT TRUMP?
U.S. one hundred dollar bills are shown in this picture illustration in Buenos Aires, Argentina, on March 10, 2025. (Matias Baglietto/NurPhoto via Getty Images / Getty Images)
He argued that investors should diversify their holdings into “stocks in international markets” as a hedge against “a weak U.S. dollar.”
Schiff warned that “stagflation” will remain “a big problem for the U.S. economy for years to come,” cautioning against an impending crisis tied to “sovereign debt” alongside “currency.”
Stagflation presents severe challenges for economic managers because classic inflation-fighting tools—such as sharp interest rate hikes—tend to dampen economic output while driving up net interest expenses on public debt burdens.
Peter Schiff, chief economist and global strategist of Euro Pacific Asset Management, told Fox News Digital during an Aug. 19 interview that the U.S. economy is currently faring “worse” than when President Joe Biden left office.
“But I want people to understand that this is not about a failure of capitalism. It’s about a failure to have capitalism. It’s a failure of central planning, central government, central banking. It’s big government that interfered with the free market that created the problem. And the solutions that are gonna be proposed by government to increase the size of government, to have even more regulation, to have even more taxes, they will just make all the problems worse,” Schiff said.
The U.S. national debt has surpassed $40 trillion, according to the U.S. Treasury.
“We need to rein in government. We need massive cuts to government spending, deregulation, we need free market forces,” he said.
US NATIONAL DEBT HITS $40 TRILLION MILESTONE FOR FIRST TIME EVER
The U.S. Capitol building is seen at sunset on Aug. 12, 2026, in Washington, D.C. (Kevin Carter/Getty Images / Getty Images)
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Political inertia leaves lawmakers reluctant to implement fiscal discipline, with Schiff emphasizing that “Republicans are in a predicament because doing the right thing economically is probably political suicide, which is why they won’t do it.”
