Amazon founder Jeff Bezos said people should consider postponing large purchases and avoid unnecessary expenses during the holiday season because an economic recession is in the making. He advises consumers to keep their cash safe.
He recommended that American families do not buy expensive items like cars and TVs in the coming months. "Take some risk off the table. Keep some dry powder on hand. Just a little bit of risk reduction could make the difference for that small business, if we do get into even more serious economic problems. You've got to play the probabilities a little bit," said Bezos to CNN.
"If you're an individual considering purchasing a big-screen TV, you might want to wait, hold onto your money, and see what transpires. The same is true with a new automobile, refrigerator, or whatever else. Just remove some risk from the equation," he added.
Reflecting several predictions, the billionaire said that the economy does not look good right now and things are slowing down. "You're seeing layoffs in many many sectors of the economy." Amazon CEO Andy Jassy recently said the company will continue layoffs till 2023. Reports have been speculating that the company will cut around 10,000 jobs.
According to the National Retail Federation, Amazon's holiday sales are projected to reach as high as $960.4 billion. A popular minimalist Joshua Becker criticised Bezos' advice and tweeted: "I didn't hear him mention refraining from Amazon's Prime Day deals or Black Friday offers, but I recommend adding those items to your list as well."
Bezos also said that he will be donating a majority of his net worth to charities fighting climate change and supporting efforts to unify humanity. He did not specify how much money he is planning to donate.