US economy is at risk of 'European-style' decline: JPMorgan CEO
What's the story
JP Morgan Chase CEO Jamie Dimon has warned that the US is heading toward a European-style economic decline if anti-business policies continue to drive companies out of major cities. Speaking at the American Business Forum in Miami, Dimon said, "In 30 years, if we don't fix these things, we are going the way of Europe." He cited Europe's declining GDP as proof of what happens when governments impose excessive regulations and taxes on businesses.
Business competition
Need for growth-friendly environments
Dimon stressed that US cities and states need to create growth-friendly environments or risk losing businesses to other regions with more favorable policies. He said, "Everyone has to compete, between countries, between states, and between cities." The banking titan warned that jurisdictions creating hostile business climates will suffer severe consequences as companies move to more favorable environments.
Policy critique
Dimon criticizes anti-business policies
Dimon criticized anti-business policies, saying they don't help average Americans. He dismissed proposals like free busses and childcare funded by higher taxes on corporations and the wealthy. "This notion of somehow being anti-business is going to help average American citizens, even the lower paid," he said at the Saudi Arabia-backed summit. "I don't agree with the concept," he said.
Regulation advice
Advise against excessive regulations
Dimon also advised Democrat-led cities to cut excessive regulations, which he called "blue tape," to avoid economic decline. He left a voicemail for newly elected New York Mayor Zohran Mamdani, suggesting he consult Detroit Mayor Mike Duggan. Mamdani is set to implement a progressive agenda including higher taxes on the wealthy and expanded social programs.