JPMorgan CEO Jamie Dimon is betting on America, saying there are “huge” positives to look forward to even in the face of economic uncertainty and persistent banking turmoil.
In his annual letter to shareholders published on Tuesday, Dimon described 2022 as a year full of “significant challenges,” including the war in Ukraine, growing geopolitical tensions and a politically divided America.
Despite acknowledging that there were “storm clouds ahead”, Dimon said he was optimistic about America’s long-term outlook, noting the country was likely to have doubled its GDP within 20 years.
“When one talks about risk for too long, it begins to cloud your judgment,” he said. “Looking ahead, the positives are huge.”
He insisted that now was the moment for Americans to “put aside our differences and work with other Western nations to come together in defense of democracy and essential freedoms.”
“During other times of great crisis, we have seen America, in partnership with other countries around the globe, unite for a common cause,” Dimon said.
“This is that moment again, when our country needs to work across public and private sectors to lead while improving American competitiveness—which also means re-establishing the American promise of providing equal access to opportunity for all.”
Parallels with Warren Buffet's Berkshire Hathaway
Drawing on wisdom shared by his friend—and legendary investor—Warren Buffett, Dimon drew parallels between JPMorgan and Buffett’s Berkshire Hathaway.
“His company’s success is predicated upon the extraordinary conditions our country creates,” Dimon said.
“He is right to say to his shareholders that when they see the American flag, they all should say thank you. We should, too. JPMorgan Chase is a healthy and thriving company, and we always want to give back and pay our fair share.”
Dimon pinpoints two areas America needs to strengthen
Dimon also called for a comprehensive U.S. growth strategy to be implemented, which should address areas from soaring healthcare costs to what he described as ineffective education systems.
“Of all the policy errors we need to remedy in America, there are two that I believe will have a dramatic effect on growth and equality—and go a long way toward repairing the frayed American dream.”
The first of these policies was providing students and other individuals with skills in fields like advanced manufacturing, data science and healthcare, which he said would lead them into better-paying jobs.
The second step, Dimon contended, was to address income inequality.
“The gap between skilled and unskilled workers has been growing dramatically—so much so that unskilled labor has become less and less a ‘living wage,’” he said, noting that around 21 million working Americans were paid less than $15 an hour.
“It is hard to live on $15 an hour, particularly for families,” Dimon wrote. “But all jobs should be treated with respect. Jobs and living wages bring dignity, lead to more opportunity—in housing, education, childcare, health and overall well-being—and also help rebuild communities as that income is used to improve how people live.”
Dimon’s letter can be read in full here.
