Scott Bessent’s ‘Economic D-Day’ Gets Slammed by Economists: Justin Wolfers Compares Strategy to Failed Cuba Embargo, Peter Schiff Questions Credibility

On Monday, economists Justin Wolfers and Peter Schiff raised concerns about the effectiveness and broader risks of the Donald Trump administration’s sweeping new economic pressure campaign against Iran.

Justin Wolfers Compares Iran Strategy To Cuba

Wolfers described Treasury Secretary Scott Bessent’s campaign as an "economic D-Day" and questioned whether the strategy can achieve its political objectives.

In a video posted on YouTube, Wolfers compared the administration’s approach to the U.S. strategy toward Cuba during the 1960s, when Washington sought to use economic pressure to weaken Fidel Castro’s government.

"The sanctions … have not met any of their objectives," Wolfers said, citing a historical assessment of the Cuba policy.

Wolfers argued that broad sanctions can hurt ordinary citizens without necessarily forcing an authoritarian government from power.

Instead, economic hardship can give governments a foreign adversary to blame and potentially strengthen nationalist sentiment.

My insta-analysis of Operation Economic Outcast — economic D-Day — asks what the U.S. can learn from its past adventures with sanctions (ahem, Cuba), and what careful studies say about the likelihood that the Administration will achieve its goals.https://t.co/S3PRyhn2Vf

— Justin Wolfers (@JustinWolfers) August 24, 2026

Peter Schiff Questions Trump’s Iran Strategy

Schiff took a different but equally critical view, questioning the credibility of the administration’s threats.

Schiff said Bessent’s explanation that Washington does not want to "blow up the global financial system" by immediately imposing the harshest secondary sanctions could undermine the threat itself.

Bessent said the reason Trump is only threatening secondary economic sanctions and not actually imposing them now is that he does not want to "blow up the global financial system." Since the U.S. is the primary beneficiary of that system, no one will take this threat seriously.

— Peter Schiff (@PeterSchiff) August 24, 2026

When challenged on his criticism of Trump, Schiff responded: "If I thought his efforts would actually succeed in making America great again, I would support him."

If I thought his efforts would actually succeed in making America great again I would support him.

— Peter Schiff (@PeterSchiff) August 24, 2026

El-Erian Says Secondary Sanctions Are Key to Iran Pressure

Economist Mohamed El-Erian took to X and said Bessent’s remarks made clear that secondary sanctions are central to intensifying pressure on Iran, with "no one above the reach of US sanctions."

Secretary Bessent’s remarks just now made it clear that secondary sanctions are central to intensifying US economic pressure on Iran, with "no one above the reach of US sanctions."
When reporters pressed on whether China and its entities would be targeted, they were told to wait…

— Mohamed A. El-Erian (@elerianm) August 24, 2026

Bessent’s Operation Economic Outcast targets nearly 60 Iran-linked entities and expands pressure across shipping, aviation, technology, gold and digital assets.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock/ Maxim Elramsisy