Peter Schiff Warns Trump’s $5,000 Voter 'Bribe' Could Trigger 'Massive Inflation' Worse Than Under Biden: 'The Craziest Part Is...'

Namrata Sen

Fri, September 11, 2026 at 10:30 PM GMT+3 6 min read

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Economist Peter Schiff criticized President Donald Trump's promise of a $5,000 payout to adult voters, warning it could cause a significant inflation spike.

Schiff took to X to express his concerns over Trump's pledge to lure voters ahead of the November midterms. He referred to the proposed payout as a "bribe," that requires domestic spending and would force the Federal Reserve to print money.

He warned that it would result in "massive inflation," even exceeding anything seen under former President Joe Biden.

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In another post, he added, "The craziest part is that Treasury Secretary Scott Bessent actually clapped following this ridiculous promise."

The craziest part is that Treasury Secretary Scott Bessent actually clapped following this ridiculous promise.

— Peter Schiff (@PeterSchiff) September 10, 2026

Besides Schiff, Rep. Jamie Raskin criticized Trump's proposed $5,000 "Trump Dividend," calling it a political bribe that could add $1.3 trillion to the national debt.

He further accused his administration of fueling debt, wars, tariffs, corruption and loss of health insurance coverage.

So after adding trillions of dollars to the national debt, driving it over an unprecedented $40 trillion, Trump now offers everyone a $5,000 political bribe ("the Trump Dividend") if we elect Republicans to run Congress. So add another $1.3 trillion to the wreckage of this…

— Rep. Jamie Raskin (@RepRaskin) September 10, 2026

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Trump Ties $5,000 Payout to Midterms

Trump's pledge, made at the Republican midterm convention on Wednesday, promises a $5,000 "dividend" to every adult U.S. citizen if Republicans retain both the House and Senate in November.

The payout, tied directly to the GOP's midterm performance, could cost an estimated $1.35 trillion, according to a Reuters report.

The President said the proposed payment would be possible because of strong U.S. economic performance, comparing it to a corporate dividend. He also said recipients would be required to spend the money domestically, though no enforcement mechanism has been detailed.

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Inflation Risks Remain Elevated

Schiff's warning comes at a time when inflation fears are already high. July PCE inflation rose 0.2% monthly, while annual inflation held at 3.7%. Core PCE remained elevated at 3.3%, well above the Fed's 2% target.

TD Securities expects headline CPI to rise 0.37% month over month, driven by a 4.2% jump in gasoline prices, while core services inflation is forecast to increase 0.26% month-over-month.

However, the bank expects overall August inflation to remain relatively contained. Household goods and apparel are expected to drive the decline, indicating limited tariff pass-through on consumer prices. However, it sees upside risks because its forecast depends on large declines in tariff-sensitive categories.

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