US driving toward a cliff
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JPMorgan CEO Jamie Dimon warns US driving toward a cliff as debt snowballs
JPMorgan chief warns US must address debt before it becomes a crisis
JPMorgan Chase chairman and CEO Jamie Dimon says the U.S. is speeding toward a cliff as the nation's runaway debt continues to mount, sounding the alarm that the situation needs to be tackled before it results in a crisis.
The chief executive of the nation's largest bank issued the warning during a panel discussion at the Bipartisan Policy Center on Friday, when he was asked for his take on what it means for the economy if the federal government fails to address the issue.
Dimon began his response by recalling how the economy looked back in 1982, with inflation around 12%, the prime rate around 21.5% and unemployment somewhere around 10%, and the debt was around 35% of gross domestic product. He noted that today, the debt-to-GDP ratio is above 100%, and said it is projected to reach 130% by 2035.
"And it's a hockey stick," Dimon said, describing how the debt growth would appear on a chart.
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JPMorgan CEO Jamie Dimon sometimes say the darndest things; e.g., https://fortune.com/2024/01/26/jamie-dimon-taxing-wealthy-little-bit-more-jpmorgan-ceo/
Jamie Dimon says lower-income people need more help and he'd 'pay for it by taxing the wealthy a little bit more'
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For Chase CEO Jamie Dimon, taxing the rich more to help support the poor is “as much of a no-brainer policy as I have ever seen.” … -
If you can show exactly how more help will improve their chances for financial independence rather than just subsidizing poverty, I might support taxing the wealthy a little more. I see no evidence the money would be spent wisely.
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If you can show exactly how more help will improve their chances for financial independence rather than just subsidizing poverty, I might support taxing the wealthy a little more. I see no evidence the money would be spent wisely.
@Mik It can work, but I agree that is not easy.
Interesting case study that I knew someone who was involved in it.
http://www.bignam.org (This was started in 2009, so they have 10 years of data)
There are some very cool things being done with micro loans, etc. in developing countries. I told the story before about a lady I was involved with that got a micro loan to start a laundry business.
The basic income, which includes the money for her seven children, provides Katangolo with 800 Namibian dollars a month (NOTE: this is about Euro 70 or USD 80/month). She calculates that after deducting the tuition, she will have 600 dollars left to feed her children. She smiles.
She wipes away the numbers in the sand and walks into her hut. Inside, there is a makeshift kitchen that comprises a wooden board and a few plastic bowls. The hut smells of rancid fat and an open fire. Katangolo counts her supplies. It has been 10 days since the last payment date, she still has two sacks of flour, and she shakes a bottle of oil to show that there is enough left. She also gathers dry spinach in the bush, which, now that the people here have a little money left over, she is sometimes even able to sell. "And if it still isn't enough," she says, "I'll just sell a chicken." Katangolo used her first BIG payment to buy two chickens for 25 Namibian dollars apiece.
Within a year, the two chickens had produced 40 offspring. Nowadays she sells one chicken for 30 dollars. If she were to sell all her chickens, she says, she would have turned a profit, after deducting the cost of feed, of about 1,000 dollars (€87). Through the use of capital and investment, she has generated economic growth and profit, and has even managed to reinvest her capital. Thanks to the basic income program, Katangolo is now a businesswoman.
She used her initial revenues to buy seed corn, and she now has a few healthy-looking rows of corn growing in front of her hut. She has purchased new corrugated metal to expand her hut, she is able to pay her children's tuition regularly, and sometimes she can even afford the luxury of macaroni instead of corn porridge, or a bus ticket to visit relatives in the north. "I would never have dreamed that this was possible," she says, giggling a little
