In an exclusive interview with CNN Business, CEO Jamie Dimon tells Poppy Harlow about JPMorgan Chase’s $350 million investment in the future of work. He also discusses what he thinks is holding back the US economy and why a comprehensive trade deal is needed.
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ValueWalk's Raul Panganiban interviews Joseph Cioffi, Author of Credit Chronometer and Partner at Davis + Gilbert where he is Chair of the Insolvency, Creditor’s Rights & Financial Products Practice Group. In the interview, we discuss the findings of the 3rd Annual report. Q2 2021 hedge fund letters, conferences and more The following is a computer Read More
JPMorgan just rolled out a huge initiative 350 million dollar investment in the future of work. What have you seen happening without this investment that you think makes it so necessary now.
So if you look at America we've grown at 20 percent last 10 years or even 40. We've identified one of the reasons is that kids are getting the education they need to get a job and I'm to a real job. We had a high school computer Community College could be at a college. It's probably been holding America back. I say possibly substantially which is why you have 17 open jobs in slightly less than unemployed. So we've seen this at the local level and you were those in Detroit that if you actually local work with the local companies in Detroit that me need machine Turow's or welders. The whole country needs automotive or nursing or some like that. Done right. You create kids jobs it creates dignity. So that first job that first rung on the ladder so we just think it's a critical thing to do.
But let's just hang on that word dignity for a moment. I mean I couldn't agree more. People want to work and they want to enjoy their job but has America forgotten about whether it's corporate America that insists many of them on these four year college degrees the government about the importance of the dignity of work and a path that doesn't necessarily mean an Ivy League or any four year college degree.
Yeah I think you're absolutely right so early. My grandparents didn't get a high school degree and they came in the the dishes like everybody else and it kind of moved on up in dignity work is dignity dignity creates a household better social outcomes household formation et cetera. And we did kind of go to Florida to get a college degree. So 70 percent of Americans don't. That's true. By the way in Switzerland Germany France 30 percent go on but you don't they need jobs they need the skills the community college level the apprenticeship level. We know what works apprenticeships Switzerland and Germany do apprenticeship programs these kids graduate 12 grade years old with certifications. Unemployment among 17 to 24 is like 3 percent. In France it's like 20 percent. And so we know a worker who is implemented at the local level with community organisations and governments who want to get on board.
So I mean there's only so much even a really wealthy institution like JP Morgan can do. I mean what about the government the onus and all this you've got a lot of 20 20 candidates talking about fighting over whether we should have four year college free for all. I assume you're in the camp that doesn't think America can afford that. But can America afford something America could afford almost whatever it wants.
The question of the status of what actually works you know slogans are not policy and so we actually know what works and I'm in favor of getting more kids college degrees but not they get there and they don't get a job. So you also mentioned like we are eliminating jobs where says college would be required which should not be required. And you know again the kids are still going to college. So we've trained here in New York City thirty five kids at a community college. All jobs as tellers. Thirty five thousand dollars a year full medical pension et cetera. And look may someday go on somebody go to college some may just move up the ladder here but I think they're actually happier because of college. We were quite a mature a lot of college kids because we want to actually become a teller was probably just a way station.
So what did JP Morgan ever make that mistake in terms of sort of the job description saying for your college degree when you didn't need it. Yeah.
We've been asking in our head of H.R. is removed from a lot of jobs but even words removed even words removed. My guess is the bureaucracy locally can easily say well it's easier it's easier screened as a job. Jobs required and we should eliminate that and so we need a lot to do to get the system that gets kids livelihoods out of high schools, community college and colleges and hasn't done very well particularly in inner cities. So for you and I it worked pretty well for our kids. Are you able kids but you know we're pretty well. But you go around the country simply doesn't work well as one of the reach of legitimate anger. Where's the opportunity that kid used to have. That's not quite what it was.
You also are tying this announcement about the future of work to the to the inmate population here. The prison system. What's going on with you with criminal justice in this country. What do you think this can do to actually reduce recidivism and real incarceration rates.
So we have 20 million phones here. That number is six times as a percent of the population that it has and a lot of those people probably never should be felons or they've paid their price and their right to return and try. I actually met with some ex felons in Chicago. They've got families they've got kids that can't get credit they can't get a home they will get a job and they deserve a second chance. So one of the things we're trying here is we do hire ex felons but in a lot of ways in the negatory industry the regulatory rules that make it very hard and we actually went to regulators I applaud them. They're going to they've changed the rules so we give kids people a chance to come back with the job. Household formation dignity and the people are.