This is how Jamie Dimon would fix income inequality

In an exclusive interview at the launch of the Chicago Entrepreneurs of Color Fund, JPMorgan Chase CEO Jamie Dimon tells CNN's Christine Romans that he would implement a negative income tax and declare a national emergency on infrastructure and education.

Posted: Jul 24, 2018 5:58 AM
Updated: Jul 24, 2018 6:18 AM

JPMorgan Chase CEO Jamie Dimon is worried the economy's momentum could be derailed by President Donald Trump's trade wars.

"If you do another $200 billion of tariffs and this national security thing about cars, I think that you're getting pretty close to reversing some of the benefits you've seen in the economy," Dimon told CNNMoney's Christine Romans.

Trump has announced pending tariffs on Chinese goods worth $200 billion, as well as potential tariffs on imports of autos and auto parts.

Dimon is probably America's most influential bank CEO. He is the longest serving chief executive on Wall Street and heads the powerful Business Roundtable. Dimon spoke with CNNMoney last Thursday in an interview that touched on trade, education, immigration and Trump.

On China, Dimon said, Trump has "raised serious issues that are pretty accurate." But his tactics pose risks, and have the potential to dial back gains from corporate tax cuts, he said.

"I would remind folks that the president's team has already said, 'There will be no retaliation.' They've already been wrong," Dimon said. "If I was the president, I'd be a little ticked off at some of my advisers, to tell you the truth."

On trade: 'Our next step' is not clear

Dimon said it's too early to know whether tariffs will undo the economy's gains, but that such a reversal is "possible."

Earlier this year, the United States imposed steep tariffs on steel and aluminum imports, angering allies such as Canada, Mexico and the European Union, which retaliated with tariffs of their own. The United States and China have swapped tariffs on billions of dollars of each other's goods, and Trump is threatening to strike again at even more Chinese exports.

Dimon said issues like Chinese intellectual property theft would have been better addressed by forming a "common front" with US allies such as Mexico, Canada, Europe and Japan.

"Now we have a little bit of a trade war, [a] trade skirmish — however you want to define it — with all our allies and China," he said. "That's complex. It raises the uncertainty a little bit."

While China will probably stick to "measured, tit-for-tat retaliation," it's not clear what the United States will do next, Dimon added.

"I just don't know what our next step is going to be," he said. "We're all anxiously waiting to see."

Dimon also said he wants the United States to wrap up negotiations on the North American Free Trade Agreement.

"We want NAFTA done," he said. "To be torturing Mexico in this way, in my opinion, is dead wrong, and it should be fixed."

On immigration: Worried about the brain drain

Dimon reiterated his support for DACA, the Obama-era program that allowed undocumented immigrants brought to the United States as children to live and work domestically without fear of deportation.

"Most Americans like the immigrants they know, who help them and work with them," he said. "We need the jobs."

He also expressed concern about a US brain drain. Foreign nationals who go to college or graduate school in the United States should be awarded green cards after graduation, Dimon said.

"In Toronto, Vancouver, they're saying, 'We'll take them all,'" he said. "So you have these new research centers, new AI centers, and new [engineering] and design centers that are being built in Vancouver and Toronto, and not in Seattle. That can't be smart."

On infrastructure and education: 'Declare an emergency'

The United States remains the best place in the world to do business, Dimon said. But he believes the country has lost its way on infrastructure and education.

"We have a national emergency in inner city schools," Dimon said, adding that he would "do infrastructure and education like World War II" and "declare an emergency."

"It isn't like we haven't been trying a little bit, but we need success at this point," he said.

In recent years, JPMorgan has focused a good chunk of its giving on economic development in underserved communities.

On Thursday, the bank announced that it would invest $4 million to provide minority entrepreneurs on Chicago's South Side and West Side with the money and resources necessary to get their businesses off the ground, replicating funds the company set up in Detroit, San Francisco and New York City.

"We know what to do, and we have to do more of it," Dimon said.

On Trump

Dimon said he doesn't agree with all the president's policies, but believes he has an obligation to engage. "You can't take yourself off the playing field," he said.

Businesses can work with an administration without supporting all its policies, he added.

"I think it's a mistake to say that because business is trying to work with government that they're supporting every policy of the government," he said. "That just is not true."

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 1097128

Reported Deaths: 17438
CountyCasesDeaths
Marion1437882222
Lake712531225
Allen65537867
Hamilton50147482
St. Joseph48760639
Elkhart39461538
Vanderburgh34221495
Tippecanoe30237271
Johnson27179463
Hendricks25845379
Porter25014381
Madison20656444
Clark19898275
Vigo18764308
LaPorte16857260
Delaware16425291
Howard16408311
Monroe16379217
Kosciusko13936163
Hancock12841185
Bartholomew12686188
Warrick11995189
Wayne11879265
Floyd11869225
Grant11701235
Morgan10252188
Boone9675120
Noble9069121
Henry9002165
Marshall8907146
Dearborn881799
Dubois8710139
Shelby8054128
Cass8014127
Lawrence7922182
DeKalb7591106
Huntington7448108
Jackson743893
Gibson7002118
Montgomery6910123
Harrison685296
Knox6827113
Steuben654186
Miami6477107
Whitley642260
Putnam631982
Clinton618976
Wabash6060108
Jasper601791
Jefferson5689103
Ripley549192
Adams532381
Daviess5003116
Scott480378
Wells471799
White468767
Greene461799
Clay457462
Decatur4529109
Jennings439666
Fayette435694
LaGrange419290
Posey403244
Washington384154
Randolph3818107
Fountain368362
Spencer355846
Fulton355572
Starke348772
Owen346276
Sullivan344954
Orange324470
Jay318650
Rush298332
Carroll289438
Franklin286744
Perry283253
Vermillion280458
Tipton247365
Parke246330
Pike244144
Blackford218044
Pulaski205658
Newton179052
Brown171850
Crawford167929
Benton163217
Martin150819
Switzerland145112
Warren132216
Union117816
Ohio91413
Unassigned0585

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1683472

Reported Deaths: 26483
CountyCasesDeaths
Franklin1766331826
Cuyahoga1641462636
Hamilton1122641528
Montgomery794721387
Summit702171199
Lucas618431017
Butler55878803
Stark525841170
Lorain41058639
Warren35404412
Mahoning35095769
Lake31445493
Clermont30711362
Delaware26682182
Trumbull26664611
Licking26200335
Medina25291351
Fairfield24173287
Greene24051369
Clark21653387
Portage20709280
Richland20587336
Wood19626246
Allen18542320
Miami17031348
Columbiana16502331
Muskingum16416206
Wayne15432304
Tuscarawas14086357
Marion13054194
Erie12423198
Ashtabula12314225
Scioto12235182
Pickaway12070151
Ross11487223
Hancock11256173
Geauga10666174
Lawrence10504171
Belmont10259231
Huron9588155
Jefferson9462225
Union939175
Sandusky9068166
Seneca8692156
Knox8618169
Washington8613156
Athens827396
Darke8270179
Ashland7840147
Auglaize7741115
Shelby7337132
Defiance7210114
Crawford7082150
Brown7052115
Fulton7016111
Logan6857108
Mercer681697
Guernsey680283
Highland6615117
Madison641389
Clinton6388106
Williams628798
Preble6171139
Putnam6089120
Jackson572396
Champaign568286
Perry558879
Coshocton5552103
Ottawa553599
Morrow506464
Fayette483170
Hardin477899
Gallia462978
Pike459076
Van Wert454691
Adams4514109
Henry424976
Hocking401493
Holmes3939137
Wyandot367973
Carroll351578
Paulding319349
Meigs302457
Monroe231860
Noble216447
Morgan210138
Harrison205152
Vinton183937
Unassigned05
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The warming trend is expected to continue through Thursday before cooler air returns to the Midwest.
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