JPMorgan CEO Jamie Dimon called the Coronavirus epidemic a “wake-up call,”
JPMorgan CEO Jamie Dimon called the Coronavirus epidemic a “wake-up call,” which sheds light on the imbalances in the US economy.
In a note to his team, Dimon expressed his hope that this time would be used to reconstruct the economic structure in a very fairway.
COVID-19 deepens America’s wealth inequality
As the impact of the COVID-19 epidemic began its global spread, a historic, decade-long bull market abruptly ended in early March. In the months that followed, the economy crashed, leaving 36 million Americans out of work.
The national unemployment rate is now 14.7% – the highest rate since the Great Depression – and 40% of Americans who identify as working people are now unemployed.
Dimon on economic inequality
Investment bank billionaire Dimon surprised many by focusing on economic inequality that has become more apparent since the onset of the current health and financial disaster.
“This crisis is a wake-up call, and action must be made to create, implement, invest and face structural barriers to the common goods of the enterprises and the government, including long years of economic growth,” Dimon wrote to his staff in his note.
“I’m very convinced that if we use this crisis as a catalyst for the reconstruction of an economy which dramatically gives more people a chance, in particular those who have long been excluded,” the JPMorgan CEO Jamie Dimon said.
Dimon says that addressing inequality methods that “prevent the creation of an inclusive economy and fry our social fabric” will be beneficial for all. He said, “A holistic economy — in which the opportunity is widely accessible — is a strong, resilient economy.”
The line of thought in Dimon’s memo parallels the school of thought won by the liberal philosopher John Rawls.
According to Rawlsian theory, an economy must be measured only by the welfare of its lower levels of well-being, rather than the average of each person’s income or consumption. Otherwise, an exaggerated wealthy can hide the plight of low-income individuals.
A Rawlsian economy will improve those left before the current epidemic, making the opportunity more accessible and making the organization better for all participants.
Walking the Walk
Dimon now puts his money where his mouth is, making sure JP Morgan doesn’t contribute to an unbalanced recovery. The bank offers late payments and refunds on business, home loan and credit card accounts.
JPMorgan is also working to accelerate small businesses. As part of the wage protection program, the bank has provided $30 billion to more than 250,000 small businesses.
While the BPP has applied itself to businesses with 500 employees, half of the companies that JPMorgan has helped have fewer than 5 workers.
With even the most conservative forecasters now predicting that the economy will take years to fully recover, JPMorgan has already demonstrated its commitment to overseeing the new system.
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