The American economy has been on a downward trend for sometime now after hitting all-time highs thanks to policies under Donald Trump.
People have been bracing for impact as we’ve been teetering on the edge of a recession throughout 2022.
Now one of the world’s richest men is issuing a stark warning to Americans that should have everyone preparing for the worst.
Jeff Bezos warns people and businesses to put off major purchases and “stockpile cash”
Jeff Bezos has officially warned that a major US recession is on its way.
He warned businesses and consumers to take necessary precautions to shield themselves from a catastrophic downturn in the economy.
In an interview with CNN, the Amazon founder said, “the economy does not look great right now” and people should delay large purchases and “stockpile cash.”
Meta recently announced that they were laying off 10,000 corporate employees and corporate downsizing isn’t isolated to them.
Bezos said “things are slowing down, you’re seeing layoffs in many, many sectors of the economy . . .”
Bezos says to take “risk off the table” and “prepare for the worst”
He went on to suggest that even if “the probabilities” say that “we’re not in a recession now, we’re likely to be in one very soon.”
Bezos says that businesses and people need to “take as much risk off the table as you can” and “hope for the best, but prepare for the worst.”
While Bezos is clearly addressing the public at large, the tech industry is clearly being pummeled right now in the stock market.
According to Dan Ives at Wedbush Securities, “The clock has struck midnight on hypergrowth of big tech” and a “recession is on the doorstep.”
Amazon for example has never really stopped expanding since it was established.
Instead, the company followed in the footsteps of its competition in a litany of acquisitions leading to its current standing in the market.
Amazon knows “people’s budgets are tight” and is making decisions to prepare
Now with consumers facing record high prices and clearly watching their wallets – companies like Amazon are being forced to freeze all activities.
Amazon’s Chief Financial Officer Brian Olsavsky stated that the company is preparing for the changing trends.
“We are seeing signs all around that people’s budgets are tight, inflation is still high,” he said on a shareholder’s call, adding that Amazon is “preparing for what could be a slower growth period, like most companies.”
In addition to Meta, Amazon recently announced a cut of 10,000 corporate jobs, though it should be noted that the company employs over 300,000 people in corporate or technology positions.
Despite uncertainty Amazon is still hiring over 150,000 people for the holiday season
They are still planning to add over 150,000 employees nationwide for the holidays and there’s no indication that number should decrease.
Retail analyst, Neil Saunders says that “Amazon will remain a powerhouse in retail and beyond” but going forward no one at Amazon should expect that growth will come easily.
Google’s CEO Sundar Pichai recently said that the tech sector is facing an unprecedented event.
“It’s going to be an earthquake-like ripple effect across the Silicon Valley ecosystem—from restaurants to real estate,” Pichai warned.
Technology touches every inch of our economy at this point.
What is bad for them could mean much worse things for other major aspects of modern American life.
Patriot Political will keep you up-to-date on any developments to this ongoing story.
