After urging Americans to prepare for ‘tough times’, American billionaire and e-commerce giant founder Jeff Bezos addressed new advice to consumers amid existing fears of an economic downturn.
Bezos said, inside an interview He told CNN exclusively from his home in the US capital, Washington, that consumers and businesses should consider postponing big purchases in the coming months.
Last month, Bezos advised in a tweet to “prepare for tough times”:
Yes, the odds in this economy tell you to close the hatches. https://t.co/SwldRdms5v
—Jeff Bezos (@JeffBezos) October 18, 2022
Bezos explained in the interview that the advice was aimed at both business owners and consumers, noting that people should consider postponing buying the big items they were looking forward to, and that companies should postpone acquisitions and downsize. capital expenditures.
“A little risk-taking. A little risk-taking can make all the difference for these small businesses if we face more serious economic problems. You have to play the odds a little bit,” Bezos said.
And “CNN” said Bezos risks this advice by cutting sales of Amazon, the main source of his $124 billion fortune.
Recent reports said the company is seeking to lay off about 10,000 employees, in the largest job cut in its history, as well as freeze the hiring process.
Amazon said in October it expected sales for the last three months of the year to be well below Wall Street expectations.
The expectations came with the state of inflation experienced by the US economy and fears of a recession impacting consumers’ purchasing decisions as Americans focus more on traveling and dining abroad and less on purchasing non-essential goods .
While the US economy is not officially in a recession, nearly 75% of likely voters in a recent CNN poll said they feel like they are in a recession.
But official data indicates that inflation slowed in October to its lowest level since January 2022.
Consumer prices rose by 7.7% in October compared to October 2021, according to the benchmark consumer price index, released on Thursday by the Ministry of Labour. This increase is lower than that recorded in September on an annual basis.
This slowdown could be an indication that the measures taken by the US Federal Reserve to curb inflation are paying off.
Bezos had also stated in the interview that he intends to donate most of his wealth during his lifetime, with the majority dedicated to fighting climate change and tackling social and political divisions.
