Written by Seth Gellman
As Congress has been deadlocked over a stimulus package, they have attracted many critics. One of them, JPMorgan Chase CEO Jamie Dimon, had some less than flattering words to describe them.
On Wednesday, November 18th, Dimon told New York Times journalist Andrew Ross Sorkin, “You gotta be kidding me, I mean, just split the baby and move on. This is childish behavior on the part of our politicians.”
Congress has failed to deliver a second relief bill after key parts of the first bill, the CARES Act, expired in July. Top leaders haven’t met since the November 3rd election.
Dimon called for a fiscal stimulus package to last until mid 2021, when a vaccine would likely be out to curb cases. The damage that the pandemic is doing to small businesses and specifically the “Bottom 20%” is set to grow if the country goes back into lockdown due to rising cases.
Dimon said, “It has zero to do with Democrats and Republicans”, and, “If stimulus doesn’t come, the probability of having a good economic outcome drops.” Dimon acknowledged that the U.S. government does need to raise revenue, but economic output should be priority right now.
Dimon also mentions that he supports certain taxes, saying that some taxes hurt the economy and others don’t. He uses the example that taxing his income won’t affect the economy much but taxing capital formation over time would hurt growth.
As one of the leading financial leaders in the world, Dimon is using his position to call for a relief package. He is one of the most prominent business executives to call out Congress for their inaction, and as one of the most respected business minds, there is a chance that he may sway some minds in Washington.
