Jeff Bezos Believes a Recession is Around the Corner
Amazon founder Jeff Bezos recently warned that the United States could soon be entering a recession and called on consumers and businesses to hoard cash in case this economic reversal gets nasty.
“The economy does not look great right now,” Bezos said to CNN on Saturday.
“Things are slowing down, you’re seeing layoffs in many, many sectors of the economy,” he added. “The probabilities say if we’re not in a recession right now, we’re likely to be in one very soon.”
Bezos advised Americans to hold off on expensive purchases such as new cars, refrigerators, and TVs as economic conditions continue deteriorating. On top of that, he urged small-business owners to postpone investments in new equipment, and shore up their cash reserves.
“Take as much risk off the table as you can,” Bezos suggested. “Hope for the best, but prepare for the worst.”
Andy Jassy, who assumed the role of Amazon CEO in the summer of 2021, shares Bezos’ economics fears. Amazon has been slashing costs, tapering off its spending, and freezing hiring for various roles in the past few months, likely moves taken in anticipation of a harsh recession.
Regardless of what one thinks about Bezos, his insights should be taken seriously. When someone attains such wealth, they definitely know a thing or two about the economy and where it’s heading.
Bezos and his cronies will be fine, whereas millions of Americans will have to put up with a precarious economic existence. That’s how the cookie crumbles in the economically dysfunctional polity that is contemporary USA.
A total revamp of economic policy — downsizing of the regulatory state, ending the Federal Reserve, and simplifying the tax code — is needed for the country to truly return to stable economic conditions.