What do you do when a lawsuit asks for $5 billion over a closed bank account? Follow the incentives.
Justin Wolfers breaks down why Trump’s lawsuit against JPMorgan and CEO Jamie Dimon doesn’t read like a serious damages claim—and why it *does* make sense as a political and business pressure tactic. If your goal is headlines, leverage, and intimidation, the numbers start to look less like accounting and more like signaling.
Wolfers also connects the episode to a bigger question: what happens to capitalism when government stops “setting rules and getting out of the way” and instead starts personally targeting firms and individuals? In that world, it can become individually rational for CEOs, lawyers, and university presidents to stay quiet—even if the public loses.
The stakes aren’t just Wall Street drama. A system where businesses fear retaliation can mean less honest speech, weaker institutions, and decisions driven by politics rather than performance—costs that eventually show up in the economy you live in.
Credit to : Justin Wolfers