Jamie Dimon thinks Warren Buffett is right about America.
In an interview with CNBC’s Andrew Ross Sorkin Thursday morning, the CEO of JP Morgan said that while the US has its problems, it’s never been better.
“For all the people out there, this country is going to be fine,” Dimon said in an interview Thursday morning with CNBC’s Andrew Ross Sorkin.
Dimon added, however, that though the US could be better it has also never been better.
Dimon directly cited numbers from Warren Buffett’s latest letter to shareholders released over the weekend about how much the US economy will grow if we manage only 2% growth for the next generation.
In his letter, Buffett said:
America’s population is growing about .8% per year (.5% from births minus deaths and .3% from net migration). Thus 2% of overall growth produces about 1.2% of per capita growth. That may not sound impressive. But in a single generation of, say, 25 years, that rate of growth leads to a gain of 34.4% in real GDP per capita. (Compounding’s effects produce the excess over the percentage that would result by simply multiplying 25 x 1.2%.) In turn, that 34.4% gain will produce a staggering $19,000 increase in real GDP per capita for the next generation. Were that to be distributed equally, the gain would be $76,000 annually for a family of four. Today’s politicians need not shed tears for tomorrow’s children.
Dimon added that while maybe America’s wealth should be spread differently.
And while technology may eventually take some jobs from American workers, the advancement of technology is “the best thing to ever happen to mankind,” Dimon said.
“People have got to be very careful not to kill the golden goose,” Dimon said.