Jamie Dimon is defending capitalism in its hour of need.
In an interview with “CBS Evening News” anchor Tony Dokoupil, the JPMorgan Chase CEO rejects critiques of the country’s economic system as no longer benefiting a mass of Americans as “dead wrong.” Dimon acknowledged that capitalism has its drawbacks, but said it has helped lift “billions” out of poverty.
His remarks come as millions of Americans struggle with the high cost of living and with some polls showing a decline in positive views of capitalism. A recent CBS News poll also found that most Americans think it is harder to buy a home, raise a family and get a good job than it was for past generations.
Dimon spoke with Dokoupil following the launch of JPMorgan Chase’s new “American Dream” initiative, which will funnel tens of billions of dollars into local communities to support small businesses, affordable housing and job growth.
“Some people are selfish. Some are self-centered. Some are this. Some are that,” said Dimon, who is widely regarded as America’s most prominent banking industry CEO. “That’s true in a communist society or in a capitalist society. Some businesses do bad things, and it’s not because of capitalism.”
“Bad policy”
Still, while Dimon described the U.S. as a “prosperous nation” and said that Americans are better off than they were in the past, he acknowledged that the bottom third of income earners have seen less progress.
“Their incomes didn’t really go up very much,” he said. “They struggle more.”
The recent CBS News poll shows that 62% of Americans think opportunities are increasing for wealthy people, versus 16% who said the same for the middle class. Experts say such sentiments reflect the emergence of a so-called “K-shaped”economy in the U.S., which describes the divergent fortunes of wealthier people and those lower down the ladder.
Dimon blamed part of the affordability challenges many Americans face on “bad policy” that has failed to ignite economic growth, which he said has averaged around 2% for the last two decades.
“Had it been 3%, we [would have had] $20,000 per person more GDP. That would’ve paid for an awful lot,” he said, adding that growth is “what creates everything — capital formation, capital, R&D, investment, productivity.”
A need for affordable housing
To rev up economic activity, Dimon supports creating more affordable housing and boosting investment in local school districts.
Achieving those goals won’t be easy. To shore up the nation’s affordable housing supply, the JPMorgan CEO said the U.S. would need to rework the rules that dictate mortgage rates and remove barriers that make it more difficult and expensive to build homes.
“The reason we’re not building more affordable housing is because of local zoning requirements and mortgage origination — mortgage rules that made it so expensive to get a mortgage. We could reduce the cost of that mortgage,” he said.
Mortgage rates now stand at 6.38%, up 0.4 percentage points since the Iran war started on February 28. Meanwhile, the cost to build multifamily housing in states such as California is twice as much as in other states due to higher development fees and longer permitting processes, according to a report released last year by RAND, a nonpartisan research organization.
President Trump has called for a ban on institutional investors’ ability to buy single-family homes. But Dimon is skeptical that the proposal would have much of an impact.
“I hate to tell you this, it’s basically irrelevant…” he told CBS News. “Only 1% of the homes are owned by what you would call large companies. … I don’t think it’s gonna change any calculus.”
JPMorgan Chase prediction market?
Dimon also said JPMorgan Chase is assessing the growing demand for prediction markets, telling CBS News that “it’s possible one day we’ll do something like that.”
Still, JPMorgan Chase would draw the line at allowing customers to bet on sports and politics, as prediction markets do.
“There’s a bunch of stuff we won’t do. And obviously, we have strict rules around insider information,” Dimon said.
Asked by Dokoupil whether prediction markets are more for investing or gambling, Dimon said the platforms can be used for both purposes.
“I think for the most part, it’s more like gambling,” Dimon said. “But there are areas where you could say, ‘No, it’s investing.’ You are deeply knowledgeable. You’re taking the other side of a bet. And you think … you know better than the other person.”
AI will bring “huge benefits for society” — and risks
Dimon also touched on how he envisions artificial intelligence will reshape society. He predicts the technology could help develop treatments for disease, shrink the work week to three and a half days, and improve road and aviation safety, among other benefits.
“AI’s gonna cure cancers. It’s gonna come up with better materials. It’ll stop a lot of car crashes,” he said.
While the technology will improve people’s lives, AI could also disrupt parts of the job market, added Dimon, who stressed the importance of the public and private sectors joining forces to develop policies to address issues caused by AI.
“I do think AI in the long run will create huge benefits for society,” he said. “If it causes problems in the short run, let’s be prepared.”
Pain at the pump
With the Iran was entering its fifth week, Dimon admitted he is unsure if the conflict would tip the U.S. into a recession, saying that “what’s more important to the future of the world is that the war successfully conclude.”
He acknowledged that higher gas priceswhich on Tuesday hit $4 a gallon for the first time since 2022, are “very unfortunate” and will cause hardship for many Americans.
“The gas prices are gonna hurt some folks,” he said, adding that “the sooner it gets properly resolved, the better.”