On his podcast, Peter Schiff talked about the Democrats' legislative agenda and concluded that the "Inflation Reduction Act" will do the exact opposite.

Last Thursday, the House passed the Chips Act, a law that will subsidize the domestic computer chip industry by handing out roughly $52 billion in government subsidies for the US production of semiconductors. Peter called the bill "completely unconstitutional."

There is nothing in the US Constitution that authorized the US government to pick winners and losers, and to decide to invest taxpayer money in particular businesses and hand over that money to industries like the computer chip industry."

Politicians call this kind of handout "an investment." Peter said he doesn't see how you can call it that.

There's no return to the taxpayer. It's simply a grant. The US government is giving $50 billion to private companies."

It's really just another example of government central planning. And it never works. As Peter said, capital needs to be allocated in the private sector.

If computer chips are viable, which of course they are, and if they're necessary, then there will be a profit associated with producing those chips. And because private investors are incentivized by profits to make investments, there will be private sector investment in this industry if that is, in fact, what the country needs. And so the government needs to stay out of it. This is not an example of capitalism. This is an example of socialism. And this is going to fail."