Amazon founder and former CEO Jeff Bezos has offered some advice to consumers and small businesses on what they should do given that the U.S. economy is already in a recession or headed for a major crisis.”very soon“. The billionaire stated, “The economy doesn’t look great right now. Things are slowing down. You’re seeing layoffs in many, many sectors of the economy.“
Jeff Bezos talks about the US economy and how people should prepare for a recession.
Jeff Bezos shared his views on the U.S. 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 U.S. is in a recession and what advice he would give to small businesses, the billionaire, who is currently executive chairman of Amazon, cautioned:
The economy doesn’t look good right now. Things are slowing down. There are layoffs in many, many sectors of the economy.
While admitting that he doesn’t know “if we are technically in recession“, citing the fact that economists have argued about this, he pointed out, “The odds say that if we are not in a recession now, we are likely to be in one very soon.“
“My advice to people“, including small business owners, is to “take some risks on the table“, Bezos said, adding:
If you were going to make a purchase, maybe slow that purchase down a little bit. Keep a little reserve on hand, wait a little while and see. Try to reduce some of the risks in your business or life.
“If you’re an individual and you’re considering buying a big screen TV, maybe you should slow down, hold onto that cash flow, and see what happens. It’s the same thing with a refrigerator or a new car, it doesn’t matter, just reduce the risk“, advised Jeff Bezos.
“If you’re a small business, maybe delay some capital purchases … have some cash flow. Just a little bit of risk reduction can make a difference for that small business if we’re facing even bigger economic problems. You have to play the odds a little bit“, suggested Amazon’s executive chairman.
Bezos was also asked how long he thought this recession might last. “I don’t think even the most experienced economist in the world could answer that question“, he replied, elaborating:
You just have to try to be reasonable about it, take as many risks as possible …. hope for the best but prepare for the worst.
In October, Bezos commented on Goldman Sachs CEO David Solomon’s statement that there is a strong chance of a recession. The Amazon executive tweeted at the time, “Yep, 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 U.S. recession. Some expect a severe recession, such as famed investor Jim Rogers, who thinks it will be the worst recession of his life. Economist Peter Schiff has warned that the Federal Reserve’s 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 stated that the U.S. economy is “strong as hell“.