Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Amazon is a Destroyer of Jobs and the Merchant Economy

Companies / Amazon Apr 04, 2017 - 05:29 AM GMT

By: BATR

Companies

If this is progress, just how much more can our economy afford? The myth of cheap prices, conveniently seldom factors in the structural costs to society. Building an all inclusive monopoly based upon minimal employees and predatory prices ignores the long anti-trust history that helped create the middle class. The last fifty years has demonstrated the systemic retreat from family prosperity, which has produced a vast disproportionate of wealth among the fewer haves and the growing have-nots. The enormous accumulation of market share that Amazon has steamrolled under the hypnosis of ease in selection of products, placing orders, timely deliveries, and most of all; cheapest pricing has caused the demise of much of traditional retail commerce.


This is not a replacement of horse buggies with a model T car. Henry Ford introduced a dramatic increase in pay for his workers, so they could earn their way to prosperity. No, Amazon is applying the Chinese model of coolie labor practices to stamp out the competition with advanced technology that is based upon eliminating jobs from the work force. 

Even that ultimate monopolist John D. Rockefeller, fueled the industrial revolution with Standard Oil. The economy flourished, run on cheap energy. However, with Amazon, the consolidation of online purchases is mostly a discretionary choice. Sadly, by selecting to buy from Amazon, the consumer is putting a dagger in the backs of the main street economy.

Yes, this is the same result that for decades has seen Wal-Mart close down the mom and pop retailer. Now Amazon is bent on fracturing the sales from your friendly greeter in the blue vest. Some may say, it is about time that the Benton Supercenter gets it come-uppins, but the big difference is that all those retail jobs will become just one more statistic in the unemployed reports.

Now some will say that the Seattle behemoth is becoming a major employer. Amazon soars to more than 341K employees — adding more than 110K people in a single year. Wal-Mart employs 2.3 million associates around the world, of which 1.5 million in the U.S. alone. Market Watch reported on some most disturbing news, Amazon is going to kill more American jobs than China did.

"But for retail workers, Amazon is a grave threat. Just ask the 10,100 workers who are losing their jobs at Macy’s. Or the 4,000 at The Limited. Or the thousands of workers at Sears and Kmart, which just announced 150 stores will be closing. Or the 125,000 retail workers who’ve been laid off over the past two years."

A sample of some of the List of Amazon.com products and services does not fully account for the cloud-based products including compute, storage, databases, analytics, networking, mobile, developer tools, management tools, IoT, security and enterprise applications. Jeff Bezos is hardly a job creator when he can find a technocratic method to data mine the remains of the shrinking and often part time work force. His fascination with a Blue Origin Rocket Space Program, while his personal political propaganda and Fake News, Washington Compost publication seeks to explore the final frontier for the uber rich and keepers of the Transhumanist elites.  

Why would you become a Prime subscriber using the Echo surveillance system? Millennials may be oblivious to destructive economic consequences from a culture, who values personal immediacy satisfaction over a rational profit floor on business transactions. If the retail game is to see just how low one can sell, only a guarantee price war will result.

The fallout from the deliberate assault of Amazon on the American supply chain is undeniable. Amazon and Walmart are in an all-out price war that is terrifying America’s biggest brands foretells an ominous and intentional destruction of a valid profit centered consumer based retail commerce.

"In some instances, Amazon is willing to lose money for some period of time on a product it feels it has to have. Jeff Bezos’s company knows, after all, that it has to continue to increase its selection in non-perishable grocery goods if it is going to really challenge Walmart in the $800 billion category.

But, more so than in the past, Amazon is ratcheting up the pressure on manufacturers of goods that the online retailer is unable to sell for a profit, executives say. Separate from the algorithm, brands are also facing the realization that their products that are sold profitably in stores may become unprofitable online when shipping costs are factored in."

When such a street fight drains the life blood from the chain of supply relationships, the risk is that the merchants and providers will not be able to cut their margins and remain in business. Allowing an egomaniac like Bezos to, in effect blackmail, the product mass-producers; highlights the absurd reliance on destroying thousands of companies for the fleeting gratification of pumping the Amazon stock price. 

The merchant economy is grounded on hundreds of thousands of product/supplier/retail outlet relationships and billions of consumer selection choices. At each level, a viable margin markup is needed to afford a final profit to remain in operation. Just how long will all those dedicated Amazon consumers be happy when the Bezos crew of greedy buyers are no long able to deliver their favorite items, because the makers or producers have stopped supplying?

There is an old saying in the consumer mass marketing, "selling at a loss is made up by volume". Amazon is a pillaging predator and should be prosecuted under anti-trust laws. If Standard Oil could be broken up (for the good of the country) Amazon needs to be broken up into hundreds of independent ventures that will dissipate the corporatist power to fix prices and eliminate competition.

Consumers need to buy local and protect the jobs of their regional economies. Globalists like Bezos are not innovators as he wants others to believe. He is a robber baron using cyber algorithms and below-cost pricing to control and corner markets that will only result in ruining the economy.

James Hall - April 4, 2017

Source: http://www.batr.org/corporatocracy/040417.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2017 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules