Business

Black Friday Surprise: Jeff Bezos tells people NOT to buy cars, refrigerators, and other expensive items. Critics call him out.


Billionaire Jeff Bezos, founder of e-retail giant Amazon, has some spending tips as Americans prepare for the year-end shopping season – amid a four-decade high inflationary and recession fears.

Here’s what he said:

‘If you’re an individual and you’re thinking of buying a big screen TV, maybe slow that down, keep that money, see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risks off the table.’

Bezos makes the comment in a CNN
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the interview aired this week, the same interview he gave pledge to give away most of his wealth in his life.

Why does Bezos give advice to make it easier for consumers and small businesses to buy expensive items? He gave a big reason.

“If we’re not in a recession right now, there’s a good chance we’ll be in it soon,” he said in the interview. warning tweets last month that “the probabilities in this economy tell you to try to get through the trapdoors.”

Bezos is currently the executive chairman at Amazon
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moved into the role last year when Andy Jassy took over as CEO.

This weekend, Amazon confirmed it was fired some of its employees in its equipment and services business — join a growing list of technology companies, including parent company Facebook Meta
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– that’s firing people. Amazon job cuts could amount to around 10,000, according to report Wall Street Journal.

Critics have pointed to these savings coming from a man – now worth about $120 billion – who built Amazon into an online shopping paradise.

To be sure, Bezos is not alone in his worries about a potential recession as the Federal Reserve and other central banks counter higher costs by raising interest rates.

But his advice has caused some to chuckle on social media. In a nutshell, critics say these are savings coming from a man – currently worth approx. 120 billion USD — who built Amazon into an online shopping platform that allows consumers to spend money seamlessly.

Like Joshua Becker, a minimalist advocate wrote on Twitter: “I didn’t hear him mention curtailing Amazon’s Prime Day deals or Black Friday offers, but I recommend adding those to your list as well.”

Regardless of how people feel when they hear spending advice, especially from one of the richest people in the world, there are a few things to consider when approaching events like Black Friday and Cyber ​​Monday. .

First of all, there may be discretionary expenses that people can cut. Many Americans are still spending heavily, like Walmart
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third quarter income and october retail number has just been confirmed. Holiday spending forecasts paint a similar picture.

Americans will spend between $942.6 billion and $960.4 billion on sales this holiday season, according to projections from National Retail Federation. The trade association says holiday sales last year totaled $889.3 billion.

In the third quarter, Americans’ credit card balances rose to $930 billion, the biggest annual increase in more than 20 years, according to the National Retail Federation.

But Americans are planning for the holidays while their credit card balances are growing — possibly because credit cards are helping them keep up with rising costs.

In the third quarter, Americans’ credit card balances increased 930 billion USDbiggest annual gain in more than 20 years, according to Federal Reserve Bank of New York data.

While balances grow, so do credit card interest rates. The annual percentage rate (APR) for new credit card offers averaged 19.14% in mid-November, according to Bankrate.com. That beats the old record for APR for new cards, set at 19% three decades ago.

The year-end shopping season is typically when Americans accumulate credit card debt, pay it off early next year, and repeat the holiday debt the following year.

This year, the risk could be higher if credit card bills are high and job losses due to the recession hit.

“This is not the time to overspend and have problems paying your bills later,” says Michele Raneri, vice president of financial services research and consulting at TransUnion.
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one of the country’s three major credit bureaus, told MarketWatch before. “We know the economy is sending mixed messages.”

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