Jamie Dimon says the US is 'leaving growth on the table' — and it's costing each and every American $20,000 a year. Here's what he's seeing

In an op-ed posted on the JP Morgan Chase website (2), Dimon posited that for the past few decades, America has left growth on the table. Instead of growing the GDP by 3%, they have grown by 2%.

Admittedly, that may seem like a small sum, but Dimon says that's $20,000 per person, per year that Americans are missing out on, all because of policy.

"The wrong policies and bureaucratic red tape can stifle growth and progress. It already has, for too long," Dimon wrote, in the May 4 post. "We must all remember that, despite our extraordinary blessings, the United States does not have a divine right to success."

Bad policy is choking economic growth

For Dimon, good policy can create jobs, lift wages, protect the public and "ensure everyone has a fair shot".

The post was less about criticizing politicians and more about opening the floor to senior business leaders to share their ideas during the Sturm und Drang in a new forum called "From the Desk of," which will emphasize public policy, issues, and the context that shape certain decisions.

"As with all we do, we will focus on substance, details and facts backed by rigorous analysis," Dimon wrote. ​He went further into detail in his April 6 letter to shareholders, where he acknowledged the "unsettling landscape" of current politics and the resilience of the American economy.

Dimon's critique of the Trump administration's economic policy is measured and walks the line between outright challenge, like former Federal Reserve chair Jerome Powell (3), and the partisanship of Kevin Hassett (4), the director of the National Economic Council.

But he is still pointed, finding fault with policies like a 10% cap on credit card interest rates, and speaking in defence of Powell in January (5).

"It would be an economic disaster," he said of the 10% cap (1), noting back then JP Morgan would survive it, but "you have to have a drastic reduction of the credit card business. I mean, drastic."

His commentary has not gone unnoticed, as Trump filed a lawsuit against JPMorgan Chase and Dimon for at least $5 billion, accusing them of debanking him in the fallout of the January 6 Capitol Hill riot.

"It is important to note that our economy has been fueled by large amounts of government deficit spending and past stimulus and that increased expenditure on infrastructure remains a growing need," Dimon wrote in his letter to shareholders (6). "Now, because of the war in Iran, we additionally face the potential for significant ongoing oil and commodity price shocks, along with the reshaping of global supply chains, which may lead to stickier inflation and ultimately higher interest rates than markets currently expect."

How families can respond to a $20,000 hit

Inflation, a war in Iran and high borrowing rates on everything from the Fed's benchmark policy rate (3.5%–3.75%), 30-year fixed loan mortgages (6.22%–6.37%) and prime loan rates (6.75%), have financially exhausted many Americans (7).

For households already struggling with those added costs, Dimon's estimate comes at the most inopportune time. A prolonged period of weaker economic growth could translate into slower wage gains, fewer job opportunities and higher costs for essentials like housing and groceries.