PPP likely saved 35 million jobs, says Jamie Dimon, CEO of JPMorgan Chase

The government’s emergency paycheck protection program has saved an estimated 30 to 35 million jobs by providing loans to small businesses affected by the coronavirus, Jamie Dimon, CEO of JPMorgan Chase, told NBC’s Stephanie Ruhle .

“I will give credit to [Treasury Secretary] Steven Mnuchin, [Federal Reserve Chair] Jerome Powell, the administration and the Democrats and Republicans in Congress, ”Dimon said. “Who would have thought they could move so fast?” And you can chat with PPP, and it’s been redesigned a few times, but they’ve evolved really quickly. “

The PPP has been marketed as a lifeline for struggling small businesses forced to shut down in order to stop the spread of the coronavirus. But the program’s focus on covering wage costs with forgivable loans raised questions about how large firms with higher payrolls benefited more from loans compared to smaller firms with smaller payrolls. number of employees and minority-owned businesses.

Dimon told NBC News there should be an extension of the program for “people who need the reboot money or those who didn’t get it in the first round,” including business owners colored.

“A lot of the media is saying that, you know, minority companies got a lot less than they really needed,” he said.

Economists say the pandemic has widened the wealth gap and exacerbated inequality, with low-income workers most likely to lose their jobs.

“Those least able to bear the burden were the most affected,” said Fed Chairman Powell said after last month’s monetary policy meeting. “In particular, the rise in unemployment has been particularly severe for low-wage workers, women, and African Americans and Hispanics. This reversal of economic fortunes has turned many lives upside down and created great uncertainty about the future. the future.”

Dimon, along with 26 other CEOs across the country, including Google’s Sundar Pichai, Amazon’s Jeff Bezos, and Microsoft’s Satya Nadella, have launched an initiative to bridge the racial divide in business and promote economic prosperity “no matter what. Postal code”.

The New York Jobs CEO Council is a partnership with the Department of Education, local government, and community-based nonprofits that plans to train and hire 100,000 traditionally underserved New Yorkers by 2030. L The initiative will support student learning, connect participants with professional resources, and equip students with the skills they need for the changing workplace of the future.

“A lot of companies are doing great individual things, but they’re isolated,” Dimon told Stephanie Ruhle in an interview that aired Tuesday on NBC’s “TODAY”. “We hope this is a force multiplier, that it is an exponential.”

Dimon, who is also chairman of the Nonprofit Business Roundtable and served on President Donald Trump strategic and political forum now dissolved, told NBC News that an economic recession resulting from the coronavirus is expected to occur later this year or early next year.

“We’re in a recession, but you’re going to have a delayed effect of seeing the normal effects of the recession,” he said, referring to the government’s fiscal stimulus plans and the series of emergency actions implemented by the Federal Reserve. “But that will ultimately affect income.”

The longer the country remains closed to business, the greater the economic impact on the country, Dimon said, adding that he believes the country can ask people to return to work safely.

“We can’t do this in a year and think it won’t wreak havoc in the economy,” he said. “The health effects, the negative health effects in terms of depression and drugs can be really bad.”

He said the government must do more for small businesses and unemployment insurance for the unemployed to get the country through the next three to six months.

“There’s going to be scar tissue of it, but we have a chance to recover,” he said. “We are not going to jeopardize our employees,” he said of his employees. “We give a lot of flexibility, especially if schools don’t open… But we’re going to be fine.”

Dimon said he was sympathetic to families where parents are encouraged to return to work while their children must continue to attend school with virtually no community centers open to work. He said people in this situation need “special help”, such as unemployment insurance. JPMorgan could offer child care allowances to its 240,000 employees, he added.

“Most of the companies I know are trying to help their employees get through this. Most of them,” he said. “They can’t all do this, but most of them are trying.”

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Pia Miller

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