MELAS: “We are in some tough economic times.”
BEZOS: “Yeah.”
MELAS: “Some people say that perhaps we’re already in a recession. Do you think that we’re in one? And what is your advice for small business owners?”
BEZOS: “I — I — I don’t know whether we’re technically in a recession. You know economists argue over that. They have certain technical definitions. What I can tell you is, the economy does not look great right now. Things are slowing down. You’re seeing layoffs, in many many sectors of the economy people are — are slowing down. The probabilities say, if we’re not in a recession, right now, we’re likely to be in one very soon. So my advice to people, whether they’re small business owners, or you know, is take some risk off the table. If you are going to make a purchase, maybe slow down that purchase a little bit. Keep some dry powder on hand and — and — and wait a bit and see how — try to reduce some risk in your — in your business or your life.”
MELAS: “You tweeted, batten down the hatches.”
BEZOS: “Mm-hmm.”
MELAS: “That’s what you mean by that?”
BEZOS: “That’s what I mean. If you’re an individual and you’re thinking about buying a new, you know, large screen TV, maybe slow that down, keep that cash, see what happens. Same thing with a refrigerator, or a new car, or whatever. Just take some risk off the table. If you’re a small business, maybe delay some capital purchases. Do you really need that new piece of equipment? Maybe it can wait a little bit. Have some cash 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.”
MELAS: “Any idea in terms of what you’re hearing or just with your expertise as to how long this recession could last?”
BEZOS: “I don’t think even the most experienced economists in the world can answer that question. It’s a very challenging thing to try and estimate. So I think you have to — you just have to try and be reasonable about it. Take as much risk off the table as you can for yourself. You know, hope for the best but prepare for the worst.”
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