JPMorgan CEO Jamie Dimon has called for major reforms to fix the United States’ economy, failing which the nation could follow the path of Europe, which has been facing a long period of economic slowdown.
“In 30 years, if we don’t fix these things, we are going the way of Europe,” he said, pointing out how over-regulation, weak investment and stalled innovation has left the continent with slow growth.
Dimon made the remark at the America Business Forum in Miami, where he suggested that most of America’s modern-day economic problems are early signs of a system that is too ‘slow to respond’.
“All these bad policies usually hurt the lower-paid people more,” he said, urging the US government and authorities to lower regulations that, according to him, stall construction and hurt small businesses.
Dimon used Europe as a prime example and warned that the long period of slow growth could jeopardise the continent’s economy.
“Europe used to have a GDP per person of about 90% of America,” he said. “It’s now 65% of America — and it’s on its way to 50%. And if they don’t fix it, it will jeopardise the health of Europe itself over time.”
Dimon warned that many of the pressures that Europe faces now visible in the US, starting from housing shortages to sluggish permitting and uneven school outcomes.
“You look at affordable housing, education, small business — it’s regulatory. You can’t build a multifamily building, you can’t put something here, you don’t have enough parking, you’re stuck in federal, state and local permitting. It’s terrible,” he said.
“Good public policy is free,” he said. “We already spend the money. We just need to fix the system a little bit,” he added.
Dimon went on to call for private sector to increase US competitiveness, pointing to JPMorgan’s plan to channel up to $500 billion over the next ten years into AI capabilities, defence and engineering.