JPMorgan Chase (JPM) CEO Jamie Dimon has a plan to reduce America’s $35 trillion national debt—but it may not be welcomed by the country’s wealthiest.
America’s public debt is increasingly capturing the attention of economic experts who warn that Uncle Sam’s spending is unsustainable and the economy simply isn’t growing quickly enough to keep up with future rates of repayment.
Admittedly, administrations over the past five or so years have had to provide huge fiscal stimulus in the face of the pandemic and its aftereffects, but the fact remains that there is a bill to be footed.
Wall Street veteran Dimon has a dual-prong proposal to bring the deficit back into balance: Focus on growing the economy to bring the all-important debt-to-GDP ratio back into line and rebalance the tax system for middle-income families.
Dimon told PBS News in an interview released yesterday that it was “doable” for America to continue spending on the military while reducing its overall debt.
“I would spend the money that helped make [America] a better country,” Dimon said. “So some of it is infrastructure, earned income tax credits (EITC), military. I would have a competitive international tax system…and then I would maximize growth.”
On a number of these points, Dimon has previously been clear about what he wants to see.
He cites geopolitical tension as the biggest risk to the global economy and, as a result, believes there is a “growing need” to boost military spending.
On EITC, the 68-year-old has also been clear, saying a shake-up would give “much-needed income to the individuals and communities most in need of it.”