Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Amazon Founder Jeff Bezos Advises What Consumers, Businesses Should Do As Recession Approaches – Finance Bitcoin News
Amazon founder and former CEO Jeff Bezos has offered some advice to consumers and small businesses on what to do given that the U.S. economy is either already in a recession or heading into one “very soon.” The billionaire said: “The economy is not looking good right now. Things slow down. You see layoffs in many, 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 recession and what consumers and small businesses should do in an interview with CNN last week.
In response to a question about whether the US is in a recession and what his advice would be for small businesses, the billionaire, who currently serves as Amazon’s chief, warned:
The economy is not looking good right now. Things slow down. You see layoffs in many, many sectors of the economy.
While admitting he doesn’t know “whether we’re technically in a recession,” noting that economists have argued on the subject, he emphasized, “The probabilities are that if we’re not in a recession right now, we probably will be in one. very soon.”
“My advice to people,” including small business owners, is to “take some risks off the table,” Bezos said, adding:
If you were to make a purchase, you might want to slow that purchase down a bit. Have some dry powder on hand, wait a bit and see. Try to reduce some risk in your business or life.
“If you’re an individual and you’re thinking about buying a big screen TV, you can lower it, keep the money and see what happens. Same thing with a refrigerator or a new car, whatever, just take some risk off the table, Bezos advised.
“If you’re a small business, maybe delay some capital purchases … have some cash on hand. Just a little risk reduction can make a difference to that small business if we get even more serious financial problems. You have to play the odds a little bit,” he suggested Amazon’s manager.
Bezos was also asked how long he thinks this recession could 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 sensible about it, take as much risk off the table as you can…. hope for the best but prepare for the worst.
In October, Bezos commented to Goldman Sachs CEO David Solomon that there is a good chance of a recession. The Amazon boss tweeted at the time: “Yep, the probabilities in this economy tell you to batten down the hatches.”
A recent survey shows that 98% of CEOs are preparing for a recession in the US. Some people expect a severe recession, such as renowned investor Jim Rogers who believes it will be the worst recession of his lifetime. Economist Peter Schiff warned that the Federal Reserve’s action could lead to a market crash, 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 is “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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