JPMorgan CEO Jamie Dimon declared that “San Francisco is in a much worse situation than New York,” saying major U.S. cities are failing to “do the right thing” when it comes to safety and housing shortages. I accused him of being there.
““I think every city and every country should think about what makes a city attractive, including parks and art, and that's definitely safe,” Dimon added. Fox.
Dimon also spoke at JPMorgan's 2nd Annual Healthcare Conference in San Francisco from January 8 to 8, saying, “Cities that don't do good jobs are going to lose population.” and praised the San Francisco-based company. .11.
“They are [companies] According to Fox, Dimon argued that unless employers can get permits to build affordable housing, they can't hire higher-paying employees.
For example, Google plans to build a 15,000-unit residential campus around its San Francisco headquarters that will include four master-planned Bay Area neighborhoods worth a combined $15 billion across Sunnyvale, San Jose, and Mountain View. It is predicted.
However, the tech giant ran into trouble late last year when developer Ledlease pulled out of the contract, citing “current market conditions”, even though construction was not scheduled to begin until 2026.
San Francisco-based companies aren't the only ones facing housing issues. Bay Area residents have faced a housing shortage in recent months, coughing up $700 a month for sleeping “pod” spaces 4 feet tall and 3.5 feet wide. Because they can't afford an apartment.
The pods are less than half the size of Candlestick Point RVs, which the city opened for homeless people in January 2022. He has 30 of his RVs in a “secure parking lot” called the Bay View Triage Center, which costs him $12,000 per month per vehicle in San Francisco, but residents can use his 24/7 parking lot. Live rent-free with security.
Meanwhile, New York City is worried about a mass exodus from Wall Street and “has to worry about its finances,” Dimon told Fox.
“If you always tax individuals and businesses more and more and think that the majority of taxes are paid by a small number of people and that is pushing people out, you can't have budget deficits this high. ” he said. outlet.
About 160 Wall Street firms have reportedly moved their headquarters out of the Big Apple since the end of 2019, with most setting up shop in havens like Dallas and Miami to avoid tough taxes. .Data on 17,000 companies collected by bloomberg.
Dimon proposed a solution: “Every department needs to send in a report. I think the press should be more demanding. How much are we going to give to this department? What are they going to do? What do they say they're going to do? What did you do?'' he told Fox.
The cost of living in New York is already 30% higher than the national average, but the corporate income tax rate is extremely high at 6.5% to 7.25%, according to apartment listing service Rentcafe.
On average, the combined state and local tax rate is a very high 8.52%.
For reference, corporations doing business in the tax-friendly state of Florida are subject to a 5.5% income tax, while LLCs, sole proprietorships, and S corporations doing business in the Sunshine State are exempt from paying state income tax. .
Dimon also told Fox from a JPMorgan conference that a so-called “Goldilocks” economy, with growth that is neither too hot nor too cold, will pull the U.S. out of recession because the government faces “massive deficits.” He warned that there might not be.
“I'm a little skeptical of this Goldilocks scenario. I still think there's a better chance than most that it won't be a soft landing,” Dimon said.
He pointed to a number of issues that could disrupt the economy. [consumers] The trillions of dollars gained during the coronavirus pandemic are running out. It has been postponed for various reasons, but it will expire this year. ”
“government [also] is running a huge deficit and it will affect the market,'' the 67-year-old boss of the world's largest bank also warned.
The country's debt has increased and recently reached an all-time high of more than $34.1 trillion.
