JPMorgan Chase CEO Jamie Dimon warned that high-tax, regulation-heavy states are driving businesses and residents away, accelerating an exodus to pro-growth Sun Belt states like Florida and Texas.
Speaking at the America Business Forum in Miami Thursday, Dimon cautioned that the trend could “backfire” on states along the West Coast and in the Northeast as the rise of “Wall Street South” increases competition.
“My bottom line is, I think that everything, everyone has to compete,” Dimon started on the Forum stage. “And you know why New Yorkers are so depressed? Because the light at the end of the tunnel is New Jersey.
“It’s competitive between countries. It’s competitive among cities. It’s competitive between states. And you’re mentioning a bunch of these states that are driving business out, and it will backfire.”
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Dimon’s remarks followed comments from fellow financial leaders including Adam Neumann and Ken Griffin, who praised Florida’s pro-business policies for attracting new wealth and investment.
Dimon acknowledged the migration trend and said he supports those seeking a better quality of life and work.
“People vote with their feet. And some people act like they vote with their feet because they’re selfish. They vote with their feet because they see a better life for them and their family,” Dimon said. “I’m not mad at someone if they leave JPMorgan because they say they got a better opportunity. I’m like, ‘I understand. It’s your life. I want you to be happy.’
“A lot of people can work in different cities and be quite productive,” he added. “And, so, Miami and Florida compete. They compete with taxes. They compete with universities. … We have more employees in Texas today than we have in New York.”
Even after opening JPMorgan Chase’s new $3 billion global headquarters in New York City, Dimon noted stark regulatory differences between northern and southern states, citing how long it can take to implement something as simple as a bus route change.
“You go to other cities, you’ll be negotiating for 20 years, and I think they’re making a mistake. A lot of those cities do things in the name of good, which create bad. All of these bad policies, in my view, usually hurt the lower-paid people more,” Dimon noted.
“I’m not going to blame any particular group here, but if you don’t stand forward and say, ‘We have a problem. This isn’t working,’ you won’t fix it,” he said. “So, there’s a lot to do. And going back to Miami, Florida’s done a great job.”
Recently, both Florida and Texas launched their own in-person trading floors, solidifying the “Wall Street South” label.
“I don’t know if it’s gonna work, but it’s probably gonna be bad for [Institutional Shareholder Services] and Glass Lewis, and I think that’s great. I think those institutions are terrible and should be crushed,” Dimon reacted.
“We better start fixing these things because if we don’t, folks, in 30 years we’re going the way of Europe,” he concluded. “And if we do it right, it’ll help all of our citizens — all of them — not just the people who you think are well off.”
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