The JUST Report: Whoever Wins, This Is the One Thing They Must Get Right

One of the greatest challenges facing the next president, regardless of who it is, will be getting the country’s finances under control. Federal debt has spiraled over the last 8 years and now sits north of $28 trillion (99% of GDP). The 2024 budget deficit alone will be nearly $2 trillion. Interest payments already exceed defense spending and will soon surpass Medicare. If we continue on this path, the CBO predicts total debt will equal 122% of GDP by 2035.

What has this got to do with building a more just economy? Everything.   

First, it feels inevitable that if and when efforts to cut government spending target discretionary transfer payments – social security benefits, support for veterans, government assistance for training and education, food assistance, children’s health programs, and such – the onus is going to be on the private sector to step up and do more, particularly for their lowest paid workers and the hardest hit communities.  

Second, there’s the issue of growth. The best way to increase the Treasury’s revenue base is to spur companies to invest more in creating value for all their stakeholders, particularly their workforce. A decade of JUST’s work, including our most recent Americans’ Views on Business Survey, shows this is not only what the American people want, it’s the best path to improving productivity, driving innovation, and generating superior returns for shareholders. 

Finally, there is the small matter of confidence in the future. Belief in the full faith and credit of the United States government, and the health of the economic system underpinning it, is what holds everything together. History teaches us what happens when that unravels – from the third century Roman Empire to imperial Spain to pre-revolution France. It must not be taken for granted. 

JUST Capital’s work is critical on many levels. Safeguarding the health and wealth of future generations is at its core.  

Be well, and be sure to vote!

Martin

QUOTE OF THE WEEK

“I think ahead of any crisis, and we’ve seen, and I’ve encouraged companies to do this, and leaders, we need to develop a framework for deciding how and when to engage. At the highest level, how does it fit with your purpose as a company? How does it fit with your values? And how does it impact your stakeholders? ”

• Former Best Buy CEO (and JUST board member) Hubert Joly, speaking to Harvard Business Review on how CEOs need to develop frameworks to determine when a company should actually speak on a social/political issue. 

JUST In the News

Forbes elevates Alison Omens’ insights from Future Forward’s recent Win-Win Report in a piece about why nearly half of employees are fearful to apply for disability accommodations. 

JUST AI

Fast Company asks business leaders, including Martin, if A.I. has a role in defining a company’s purposes, of discovering a part of “a company’s soul”? We’ll let you decide. 

CNBC reports that companies are testing Microsoft’s copilot A.I., but many are stopping short of full deployment. Read why. 

MUST Reads

The American Opportunity Index was released this week, revealing the companies that are leading in creating career advancement opportunities for their employees. 

The Gamer reports that despite mass layoffs (particularly on the Xbox side of the house) and recent cybersecurity issues, Microsoft CEO Satya Nadella’s will see a pay increase of nearly $30 million. 

JPMorgan Chase is suing customers for exploiting a glitch earlier this year that allowed them to draw out far more money than they actually had in their bank accounts. CNBC has the story. 

The Wall Street Journal reports that despite cooling inflation, most Americans are still seething over prices and looking for relief. 

A new survey from Bloomberg reveals that companies may be dropping DEI language, but not the actual programs. 

Chart of the Week 

This chart comes from a New York Times story diving deep into how American’s wages have recovered (or not) across income brackets as we approach the election. Above, you can see the median weekly earnings in the U.S. compared to the pre-pandemic trendline.