In his annual shareholder letter, JPMorgan Chase CEO Jamie Dimon spoke on international politics and argued the U.S. should strengthen its place as the world economic leader.
Dimon said 2023 was a strong year for the company, in the letter published Monday, as it brought in $162.4 billion in revenue. But despite the company’s successes, Dimon called this “a pivotal moment for America and the Free Western World.”
He called for the continuation of American dominance, which he says requires a robust economy to back the military.
“In the free and democratic Western world, and, in fact, for many other countries, there is no real or good alternative to America. The only other potential superpower is China,” Dimon wrote. “America is still the most prosperous nation on the planet, which not only can guarantee our military strength but also positions us to help our allies develop and grow their nations.”
More:BlackRock CEO said ‘retirement crisis’ needs to be addressed for younger generations losing hope
Protect your assets: Best high-yield savings accounts of 2023
Jamie Dimon says we ‘slept’ while China bolstered economic power
Dimon evoked the post-World War II ideal of “Pax Americana” to argue that America’s hegemonic power is the best option for relatively widespread peace and prosperity, and it is necessary that the country to maintain its position.
In that goal, he said we underestimated China’s economic prowess.
“It is a valid point that the Western world — both government and business — essentially underestimated the growing strength and potential threat of China,” the letter states. “It’s also true that China has been comprehensively and strategically focused on these economic issues, all while we slept. But let’s not cry over spilled milk — let’s just fix it.”
He said the threat comes from three angles: First, the overreliance on China in the supply chain; Second, relying on potential adversaries for rare materials and supplies critical to national security industries like pharmaceuticals and electronics; Third, weakening other countries’ economic positions and making them reliant on adversaries as a result
He called on the U.S. to be tough towards China, but still engage with the country.
Dimon discusses AI, energy, inflation in shareholder letter
In addition to international politics, Dimon also touched on various other issues facing the company.
Here are some takeaways:
- Dimon says that AI will bring changes comparable to “the printing press, the steam engine, electricity, computing and the Internet.”
- He called the notion that oil and gas projects should be stopped “naïve,” arguing that the best way to drop CO2 in the atmosphere is to replace coal with gas.
- He believes inflation may be stickier than markets, which are anticipating a soft landing, are currently predicting.
You can read the full letter here.
Who is Jamie Dimon?
Dimon is the chairman and CEO of JPMorgan Chase & Co. He is worth $2.2 billion according to Forbes.
At a World Economic Forum event in January, he called himself a “full-throated, red-blooded, patriotic, unwoke, capitalist CEO,” according to Fortune.
He had previously publicly encouraged Democrats and businesses leaders to support former Republican presidential candidate Nikki Haley in a bid against former president Donald Trump.
Contributing: Francesca Chambers, USA TODAY
