Jamie Dimon, Prophet of Profit, Warns Against Capping Usury
📰 THE STORY: JPMorgan CEO Jamie Dimon asserts that capping credit card interest rates at 10 percent, a proposal floated by Donald Trump, would be an 'economic disaster' that would cause consumers to lose access to credit. He suggests such a move would drive lenders away from the lower-income and subprime markets, leaving working-class Americans stranded. 🔍 WHAT THEY'RE NOT TELLING YOU:
Historical Context: Dimon's 'disaster' rhetoric echoes a long history of financial institutions fighting consumer protections. For instance, the US effectively abolished usury laws through the 1980 Depository Institutions Deregulation and Monetary Control Act, leading to a massive increase in credit card interest rates and consumer debt. Prior to this, many states had strict caps, some as low as
5-10%, which did not 'destroy' access to credit, but rather ensured more equitable lending. Double Standard: While Dimon decries a 10% cap as catastrophic for lending, global south nations are routinely subjected to IMF and World Bank 'structural adjustment' loans at rates that necessitate crippling austerity. These institutions, often backed by US financial power, frequently impose conditions
that devastate public services and concentrate wealth, often with JPMorgan benefiting from the resultant financial instability or 'restructuring' opportunities. There's no 'economic disaster' concern when it's the Global South paying exorbitant interest to Western creditors. Follow the Money: JPMorgan Chase reported over $49.6 billion in net income for 2023. Their 'Card & Merchant Services'