jamie dimon

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Bureaucratic red tape is hindering small businesses in the US with excessive paperwork and requirements, JPMorgan Chief Executive Officer Jamie Dimon said in his annual shareholder letter.

“We have a litigation and regulatory system that is costly, crippling small businesses with red tape and bureaucracy,” the CEO wrote. 

American capitalism is “bogged down in a maze” of red tape, he said. The US litigation system costs 1.6% of gross domestic product, which is a percent more than the average country in the Organization for Economic Co-operation and Development, he said.

“Take 10 small business owners out to lunch and ask them what they need to do to meet local, state and federal regulations, and you will understand the problem.”

Read more: Inside JPMorgan’s $30 billion push for racial equity in the economy — and within its own walls

Business owners must deal with an excessive amount of licensing, paperwork, and employment and insurance laws, which can be crippling and even limit the number of new businesses, he said. 

“Very often local regulations are simply a form of low-level corruption in which bureaucrats are paid to slowly … move … paper … around,” the long-time CEO said, noting that bad …read more

Source:: Businessinsider – Finance


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