Peter Schiff is not always right, but he makes excellent points, which are usually ignored by the establishment. One of them is that our government statistics are manipulated. Those in power love to talk about how inflation is supposedly so low, and the economy is improving. But the reality is that inflation is most probably above 5%, and if we factor that in, then we have been in continual recession since 2008. This helps to explain why the recession has been officially over since 2009, but the economy continues to feel like it is in recession…because it has never left recession. We are still in it.
Peter Schiff points out how GDP and inflation figures are manipulated to look better than they are. Unfortunately he is one of the few who dare to point out these amazingly fundamental facts. All these talking heads and experts in the mainstream media, academia and politics base their arguments on phony statistics, and no one points it out. Government statistics are treated like the unquestionable Gospel truth, despite the fact that there is abundant evidence that the Government is jiggering them. In addition to that the Government has abundant incentives to lie, and they control the process. So why not? What is even more disturbing is how much the rest of the establishment is so co-opted to go along with the charade, and no one in the establishment is calling for the truth.
Peter Schiff also points out how GDP is not an ideal measure of real wealth, because it only measures economic activity and not real achievements. Paying people to dig trenches and then fill them back again increases GDP, but it does nothing to enhance our quality of life, which should be the real motivation to do work. We should not work just to increase GDP, but to get pleasure out of it or because of what it can produce for us. The government pursues policies (usually funded by debt) that increase GDP, but because so much of it is little more than busy work/make work it does not actually do anything for us, and yet it is counted as GDP. People like Paul Krugman would probably want to bomb a city if it could increase GDP in the rebuilding effort. But, such an effort would squander assets and get us not get us any farther ahead.