US Billionaires to be Hit by Buffett Rule to Overcome Rp546,282 Trillion Debt

JAKARTA – CEO of JPMorgan Chase (JPM) Jamie Dimon has a plan to reduce United States (US) national debt which swelled to USD35 trillion or equivalent to IDR546,282 trillion (exchange rate of IDR15,608 per USD). However, the solution from the top banker will likely make billionaire in Uncle Sam’s country – the nickname for the US – is disturbed.

America’s public debt has recently come under scrutiny from economists who warn that Uncle Sam’s spending is unsustainable and the economy is not growing fast enough to keep up with future payments. Admittedly, the US government has had to provide massive fiscal stimulus over the past five years to deal with the pandemic and its aftermath, but the fact remains that there are bills to pay.

Wall Street veteran Dimon has at least two proposals to bring the deficit back into balance. The first is to focus on economic growth to restore the debt-to-GDP ratio and rebalance the tax system for middle-income earners.

Dimon told PBS News in a recently released interview that America could cut its overall debt while continuing to spend on the military.

“I’m going to spend money to make (America) a better country,” Dimon said.

“So some of them are infrastructure, earned income tax credit (EITC), military. I hope to have an internationally competitive tax system… and then that will maximize growth,” he said.

At several points, Dimon, who leads the largest US bank by assets, noted geopolitical tensions as the biggest risk to the global economy. The impact has been an increase in military spending.

He also said the overhaul would provide “much-needed revenue to individuals and communities who need it most.”