JPMorgan Chase CEO Jamie Dimon Expresses Doubts About 'Bidenomics' "I think when they write books about this 10 years from now, it will be about how it didn't work," he told The Economist.
Key Takeaways
- Dimon said the $5 trillion government stimulus, including the $1.9 trillion American Rescue Plan, was "excessive" and is "causing inflation."
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In an interview with The Economist released on Tuesday, JPMorgan Chase CEO Jamie Dimon expressed doubts about President Joe Biden's economic policies, dubbed "Bidenomics."
Bidenomics is based on the idea that the economy grows best when focusing on the middle class. It has three main pillars: investing in public sectors like infrastructure and education, helping workers improve skills to become part of the middle class, and encouraging fair competition to lower costs and support small businesses and entrepreneurs.
President Biden asserts that "Bidenomics" is working. In a recent statement in regard to the June inflation report, he said: "Good jobs and lower costs: That's Bidenomics in action."
Dimon, however, remains unconvinced.
JPMorgan Chase's CEO categorized Bidenomics as primarily an industrial policy, which should be utilized with caution. He is in favor of some industrial policy, specifically for security reasons and competitiveness, but that it should be void of social and political implications.
"There shouldn't be social policy around that. I think that's a huge mistake. It shouldn't be political it should be purely economic," Dimon said. "I think when they write books about this 10 years from now, it will be about how it didn't work."
Jamie Dimon voiced caution regarding President Biden's economic theory, Bidenomics. Nathan Howard | Getty Images
The CEO also didn't hold back when discussing the $5 trillion government stimulus, including the $1.9 trillion American Rescue Plan, saying it was "excessive" and is "causing inflation."
He also argued that the country's economic expansion has been insufficient in recent decades.
Related: Jamie Dimon Says Soft Landing Possible for Economy, but Warns of 'Scary Stuff'
"We've done a terrible job in immigration, taxation, mortgages, affordable housing, healthcare," adding that "had we done a good job" the country would have experienced 3% more GDP growth over the past two decades.
"Three percent would mean the average American would have $15,000 more GDP per person this year," Dimon said. "That would have paid for better safety nets, more military, more schooling."
Despite swirling hints about Dimon potentially running for office, which has caught significant media attention over the past year, he admitted not being too keen on the job.
He told the outlet he "never believed" he was "suited for it." On the other hand, a cabinet position could be in the cards "one day."
