Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

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