Now that Jeff Bezos has called on Americans to prepare for “difficult times”, he is giving new advice to consumers about how to manage their finances during an economic recession.
Bezos stated, in an interview with CNN that can only be seen here, from his home in Washington D.C., that people should think about delaying big buys for the next few months.
Last month, in a tweet, Bezos cautioned to “prepare for tough time”
Yep, the probabilities in this economy tell you to batten down the hatches. https://t.co/SwldRdms5v— Jeff Bezos (@JeffBezos) October 18, 2022
He noted that both business owners and consumers should follow this advice, as it would help free up resources. To elaborate, individuals should consider waiting to buy items they had been looking forward to, while companies should wait on acquisitions and reduce expenses related to capital.
“Taking a little bit of risk can make a difference for small businesses if we face more serious economic problems,” Bezos said. However, CNN reports that by reducing Amazon sales, Bezos risks his $124 billion fortune.
According to reports, the company is looking to let go of around 10,000 employees– which would be the largest amount in its history. Additionally, they have frozen their hiring process. Amazon stated that it sales for October were not meeting Wall Street expectations and predicted lower numbers for the rest of the year.
Because of the current state of inflation in the US economy and fears of an impending recession, Americans are focusing less on purchasing non-essential goods and more on traveling and dining out.
In a recent CNN poll, approximately 75% of those who are likely to vote said they feel as though they are in a recession- even though the US economy has not yet been announced as being in an official recession.
According to official figures, inflation has slowed down in October and is now at its lowest level since January 2022. Consumer prices increased by 7.7 percent last month compared to those in October 2021, according to the consumer price reference index which was published by the Ministry of Labor last Thursday. This increase that was recorded is lower than what was seen in September on an annual basis.
The recent decrease in activity may be due to the US Federal Reserve’s policies fighting inflation finally taking effect.
In the interview, Bezos also revealed his plans to donate the majority of his wealth during his lifetime. The majority will go towards fighting climate change and social/political divisions.