In about a decade, the U.S. will have no choice but to take action to address a “tragedy that we can see coming,” according to JPMorgan CEO Jamie Dimon.
In his annual letter to the company, Dimon laid out his “key concerns” about the future of the U.S. economy and the "serious issues" that need to be fixed:
“The long-term fiscal and tax issues (driven mostly by healthcare and Social Security costs, as well as complex and poorly designed corporate and individual taxes), immigration, education (especially in inner city schools) and the need for good, longterm infrastructure plans.”
Dimon, who said he is not looking at the issue in a “partisan way,” argued that only “early action would be relatively painless.”
"I do not believe that these issues will cause a crisis in the next five to 10 years, and, unfortunately, this may lull us into a false sense of security. But after 10 years, it will become clear that action will need to be taken," he wrote. "The problem is not that the US economy won't be able to take care of its citizens — it is that taking away benefits, creating intergenerational warfare and scapegoating will make for very difficult and bad politics."
He reiterated, "This is a tragedy we can see coming."
Dimon also offered policy makers four key tips for identifying a solution on what he sees as an impending crisis.
• “DON'T paint everything as black and white”
• “DON'T attack an entire class or society of people”
• “DO compromise”
• “DO reconsider existing policy and institutions”
Read more of the letter here.