Peter Schiff: FEMA Makes Hurricanes Worse

Peter Schiff discusses the unreliability of government data, especially with an election approaching, as the government has a strong incentive to bend the truth. He notes that the jobs numbers are subject to massive revisions and that the government grades its own report card, leading to a biased view of the economy. Schiff argues that the data does not align with Americans' feelings toward the economy, citing the fact that many people are working multiple jobs and struggling with debt. He also points out that the meaning of inflation has been corrupted by state statisticians, who have changed the index that measures prices. Schiff praises Elon Musk for sharing pro-market posts featuring economist Milton Friedman, who explains that government creates inflation, not greedy companies. Schiff also discusses the broken window fallacy, which assumes that natural disasters are a boon for the economy, and argues that federal intervention has made natural disasters more destructive. He suggests that federal policy should mirror the actions of Grover Cleveland, who vetoed a bill to help drought-stricken farmers, citing the lack of constitutional authority. Schiff believes that allowing local governments to pay for their own disasters and prepare for them would be more efficient. He also notes that the federal government's subsidization of insurance in disaster-prone regions has created a moral hazard, making people more vulnerable to disasters. Overall, Schiff argues that the government's economic policies are flawed and that a more free-market approach would be beneficial.