Features

Jamie Dimon: the wealth gap is a huge problem

America's wealthy have been getting wealthier, says Jamie Dimon, chairman and CEO, JPMorgan Chase. The rest of the population hasn't kept pace.

Jamie Dimon, chairman and CEO, JPMorgan Chase

The wealth gap in the US is "a huge problem," says Jamie Dimon, chairman and CEO of investment bank JPMorgan Chase. Dimon, who made $31m last year and has been singled out for criticism by Democrat Elizabeth Warren, told Lesley Stahl in an interview for CBS News: "The wealthy have been getting wealthier... middle class incomes have been kind of flat for maybe 15 years or so and that's not particularly good in America." One big issue, he argues, is that "we haven't done a good job growing our economy. That would've fixed a lot of that problem."

That said, he's not as concerned about recession as some are. "The consumer, which is 70% of the US economy, is quite strong. Confidence is very high. Their balance sheets are in great shape." Concerns about political turbulence are overdone too, he notes. "If you look at history and you take a newspaper and open it in any month, or any year, you'd have the same list of hugely unpredictable things... Human nature looks at fear and reacts to the short run, but there have been 50 or 60 international crises since World War II." Of all of those, he says, only the oil crisis of the 1970s impacted the global economy in the short term.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

In all, "this is the most prosperous economy the world has ever seen and it is going to be a very prosperous economy for the next 100 years." As for the wealth gap, he is in favour of the idea of raising the minimum wage, but not capping executive pay. "The problems are real. It does not mean free enterprise is bad."

Advertisement

Recommended

Visit/519858/how-long-can-the-good-times-roll
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
Visit/516944/why-wall-street-has-got-it-wrong-again
Economy

Why Wall Street has got the US economy wrong again

The hiring slowdown does not signal recession for the US economy. Growth is just moving down a gear, says Brian Pellegrini.
25 Oct 2019
Visit/502393/the-us-economic-downturn-its-only-a-matter-of-time
Economy

The US economic downturn: it’s only a matter of time

With the US economy facing headwinds from trade wars to slowing global growth, talk of a recession is picking up.
22 Feb 2019
Visit/economy/us-economy/600841/apples-coronavirus-warning-wont-be-the-last-but-will-markets-care
US Economy

Apple’s coronavirus warning won’t be the last – but will markets care?

If one of the world's biggest companies is feeling the pain from the coronavirus, then presumably others are too, says John Stepek. That can only lead…
18 Feb 2020

Most Popular

Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/commodities/gold/600874/gold-is-at-its-highest-level-in-years-heres-how-to-invest
Gold

Gold is at its highest level in years – here’s how to invest

Gold's rise at a time when the dollar is unnervingly strong isn't unheard of – but it is curious. John Stepek explains what's going on, and what it me…
21 Feb 2020
Visit/economy/uk-economy/600862/britains-economy-might-spring-a-surprise-on-the-doomsayers-this-year
UK Economy

Britain’s economy might spring a surprise on the doomsayers this year

The UK economy is looking pretty good – we’re more at risk of a boom than a bust, says John Stepek. Here’s why, and what it means for your portfolio.
20 Feb 2020
Visit/investments/commodities/600729/the-rare-earth-metal-that-wont-be-a-secret-for-long
Sponsored

The rare earth metal that won't be a secret for long

SPONSORED CONTENT – You can’t keep a good thing hidden forever; now is the time to consider Pensana Rare Earths and the rare earth metals NdPr.
31 Jan 2020