JPMorgan Chase CEO Jamie Dimon told CNBC Wednesday that he has "no problem paying higher taxes to address some of the fundamental challenges and inequities in our society," but that government spending must be efficient.
Flashback: Dimon told Axios he supported the 2017 Republican tax bill that lowered the corporate tax rate from 35% to 21% because he believed corporations would reinvest capital to create jobs. But a new survey from the National Association for Business Economics shows the $1.5 trillion tax cut package "appeared to have no major impact on businesses' capital investment or hiring plans," according to Reuters. The government's growing budget deficit, meanwhile, will force the Treasury Department to borrow $1 trillion for the second straight year.
Taiwanese electronics company Foxconn is reconsidering its plans to manufacture flatscreen panels at a $10 billion Wisconsin plant that promised to bring in 13,000 jobs, Reuters reports.
Why it matters: Foxconn's 2017 pledge to build the plant, which drew billions of dollars in subsidies from state taxpayers, has been touted by President Trump as one of the largest manufacturing investments by a foreign-based company in U.S. history. A Foxconn representative told Reuters that steep labor costs at the Wisconsin plant would make it impossible to compete with manufacturers outside the U.S., and that three-quarters of the plant's eventual jobs will be in research and design — rather than "blue-collar manufacturing jobs."
GameStop, a Grapevine, Texas-based video game retailer, said it has abandoned efforts to sell the company after failing to get an adequate bid, sending shares down more than 20%.
Why it matters: Because this seems to validate short-seller arguments that physical retail for video games is anachronistic, as more and more product is downloaded directly via mobile and consoles. There had been some hope that a buyer would bet on increased interest in things like VR hardware and collectibles, but apparently not.
The private sector added 213,000 jobs in January, topping the 178,000 that economists had expected, according to ADP's national employment report released on Wednesday, signaling that the labor market has yet to dry up.
Between the lines: Jobs growth surged despite the "severe disruptions" businesses saw during the government shutdown, Moody's Analytics chief economist Mark Zandi said in a statement. Friday's non-farm payrolls report, which includes government workers, is expected to be negatively impacted by the shutdown.
Almost 5,000 Bangladeshi garment factory workers who sew clothes for global retail giants such as H&M and Walmart have been fired for participating in strikes over low wages, AFP reports. The strikes turned violence earlier this month, and police used rubber bullets and tear gas.
The backstory: Bangladesh is the world’s second-biggest garment exporter behind China, and 4.1 million Bangladeshis are employed in clothing factories. The government said last September that the minimum wage would increase by up to 51% to around $95 per month — the first increase since 2013. But union leaders are demanding $215 due to rising costs of living.
Sen. Kamala Harris’ town hall with CNN’s Jake Tapper Monday night — the first of the 2020 election cycle — was the most-watched single candidate cable news town hall on record, CNN said in a statement.
By the numbers: There was an average of 712,000 adults between the ages of 25-54 tuned into CNN between 10-11 p.m. In total, Harris’ discussion with Tapper — during which she voiced support for Bernie Sanders' "Medicare for All" proposal, among other things — performed at least 75% better than the previous four town halls hosted by CNN.
The future of publishing belongs to those that focus on niche areas partly because the internet has reduced distribution costs to zero, according to Ben Thompson, author of the daily tech and media analysis note, The Stratechery.
Why it matters: We're seeing examples of that play out in real time, with niche publications touting success stories based on the loyalty of hyper-fans.
Ahead of this week's now-delayed report on U.S. GDP, think tank Prosperity Now produced an economic report it says shows how Americans are reacting to the economy.
The big picture: The situation for American families is improving, with increased levels of savings, higher wages and fewer people in dire financial straits. However, the organization argues the data shows many Americans are still hurting in a time of strong economic growth.
BuzzFeed CEO Jonah Peretti said Monday that all laid off workers in the U.S. will receive their unused paid time off and comp days as a part of their severance.
Why it matters: Buzzfeed said last week that 15% of its workforce, roughly 250 employees, would be laid off in an effort to achieve profitability. The layoffs caught employees and the media community by surprise, prompting debate over whether the company has a duty to better compensate its outgoing employees.
