GOP Presidential Candidate Says Jamie Dimon Discussed US National Debt Crisis With Her

In a recent revelation, Republican Presidential candidate Nikki Haley shared details about her discussion with JP Morgan Chase CEO Jamie Dimon on the state of the U.S. national debt.

What Happened: Haley, in an interaction on CNBC, expressed her concurrence with Dimon and billionaire investor Stanley Druckenmiller regarding the urgency to curtail the national debt, The Hill reported.

Haley said, “The idea that a Jamie Dimon or a Stan Druckenmiller would be supportive, we'll take it. … These are men that see what's happening. They see that in a couple years, our interest expenses are going to be higher than our national defense budget. They see what's in the future."

She raised alarms about the impending bankruptcy of Social Security and Medicare systems within a decade if no action is taken. Haley underscored the need for entitlement reform, proposing changes like raising the retirement age and linking increases to inflation.

See Also: US Inflation Eases More Than Expected In October, Cements Expectations For End Of Interest Rate Hikes

With a national debt of about $33 trillion, equivalent to 120% of the GDP, the choices are to either increase taxes or cut down on social spending. In 2022, the government’s expenditure on Social Security was $1.2 trillion and a total of $1.3 trillion on Medicare and Medicaid.

Wharton School Professor Kent Smetters warned that under the current policies, the U.S. has a window of 20 years for corrective measures, beyond which no tax hikes or spending cuts could prevent the government from defaulting on its debt.

Why It Matters: Dimon’s involvement in the discussion is notable, considering his earlier statements about the potential persistence of inflation. Dimon expressed concerns about the enduring impact of inflation, warning that people may be reacting prematurely to short-term figures.

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Photo: Courtesy of FORTUNE Global Forum from flickr