New York CNN –
Jamie Dimon is not convinced by “Bidenomics”.
“I’d be wary of that,” said Dimon, CEO of JPMorgan Chase, referring to President Joe Biden’s economic theory, which rejects “trickle-down” policies and instead focuses on the middle class.
The President claims that the focus on the middle class is the driving force behind the US economy’s success, but Dimon is not convinced. “It’s a difficult question to answer,” said the head of the country’s largest bank when asked if bidenomics was as successful as the president made it out to be.
In an interview with The Economist published on Tuesday, Dimon largely classified Bidenomics as an industrial policy — a strategy that specifically encourages or subsidizes specific industries, such as manufacturing. He said he recently, for the first time in his life, advocates some industrial policy, but only in terms of national security and competitiveness.
“It shouldn’t be social policy,” he said, adding, “It shouldn’t be political, it should be purely economic.”
And the $5 trillion stimulus packages approved by the government, including Biden’s $1.9 trillion American bailout plan to counter the economic impact of Covid, are overblown and “causing inflation,” Dimon said.
Although Dimon said he was concerned about Donald Trump’s possible second term as president, he said he had no plans to run for the office. He said that “one day” a cabinet post is possible.
But if Dimon were given the opportunity to shape the country’s economic policy, he said he would implement a “growth policy” of free enterprise.
The county hasn’t grown as much as it should have over the past two decades, due in part to poor immigration, tax, health care and housing policies, Dimon said.
However, the “large storm clouds” that Dimon warned about last year had only “partially hit,” at least for now, he said. But he doesn’t rule out a recession in the next six months.