Amazon founder and former chief executive Jeff Bezos has advised consumers and small businesses on what they should do given that the US economy is either already in recession or heading there “very soon” . The billionaire said: “The economy is not doing very well right now. Things are slowing down. You are seeing layoffs in very many sectors of the economy.
Jeff Bezos on the US economy and how people should prepare for a recession
Jeff Bezos, founder and former CEO of retail giant Amazon, shared his views on the US economy heading into a recession and what consumers and small businesses should do in an interview with CNN last week.
Responding to a question about whether the United States is in a recession and what his advice would be for small businesses, the billionaire, who currently serves as executive chairman of Amazon, warned:
The economy is not doing very well right now. Things are slowing down. You see layoffs in many, many sectors of the economy.
While admitting that he doesn’t know “if we’re technically in a recession”, citing that economists have argued about it, he pointed out: “The odds say that if we’re not in a recession right now, we will probably be in one very soon.”
“My advice to people, including small business owners, is to “take some risk off the table,” Bezos said, adding:
If you were going to make a purchase, maybe slow down that purchase a bit. Keep some dry powder handy, wait a bit and see. Try to reduce some risks in your business or in your life.
“If you’re an individual and you’re thinking of buying a big screen TV, maybe slow it down, save that money and see what happens. Same with a fridge or a new car, whatever, just take a little risk off the table,” Bezos advised.
“If you’re a small business, maybe delay some capital purchases…have cash on hand. Just a little risk reduction can make a difference for this small business if we run into even bigger economic problems. You have to play the odds a bit,” suggested the executive chairman of Amazon.
Bezos was also asked how long he thinks this recession will last. “I don’t think even the most experienced economist in the world can answer that question,” he replied, adding:
You just have to try to be reasonable about it, take as many risks on the table as possible…. hope for the best but prepare for the worst.
In October, Bezos commented on Goldman Sachs CEO David Solomon saying there was a good chance of a recession. The Amazon executive tweeted at the time: “Yes, the odds in this economy are telling you to batten down the hatches.”
A recent survey shows that 98% of business leaders are preparing for a recession in the United States. Some people expect a severe recession, like renowned investor Jim Rogers who believes it will be the worst recession of his life. Economist Peter Schiff has warned that Federal Reserve action could lead to stock market crashes, a massive financial crisis and a severe recession. However, the White House is not preparing for a recession. President Joe Biden recently claimed that the US economy was “strong as hell”.
What do you think of Amazon founder Jeff Bezos’ comments? Let us know in the comments section below.
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