Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
What A War With North Korea Would Look Like - 25th Apr 17
Pensions Are On The Way Out But Retirement Funds Are Not Working Either - 25th Apr 17
Frank Holmes : Gold Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply - 25th Apr 17
3 Reasons Why “Spring Forward, Fall Back” Also Applies To Gold - 25th Apr 17
SPX may be Aiming at the Cycle Top Resistance - 25th Apr 17
Walmart Stock Extending Higher - Elliott Wave Trend Forecast - 25th Apr 17
Google Panics and KILLS YouTube to Appease Mainstream Media and Corporate Advertisers - 25th Apr 17
Gold Price Is 1% Shy of Ripping Higher - 25th Apr 17
Exchange-Traded Funds Make Decisions Easy - 25th Apr 17
Trump Is Among The Institutionally Weakest National Leaders In The World - 25th Apr 17
3 Maps That Explain the Geopolitics of Nuclear Weapons - 25th Apr 17
Risk on Stock Market French Election Euphoria - 24th Apr 17
Fear Campaign Against Americans Continues Nuclear Attack Drills in New York City - 24th Apr 17
Is the Stock Market Bounce Over? - 24th Apr 17
This Could Be One Of the Biggest Winners Of The Electric Car Boom - 24th Apr 17
Le Pen Shifts Political Landscape- The Rise of New French Gaullism  - 24th Apr 17
IMF Says Austerity Is Over - Surplus or Stimulus - 24th Apr 17
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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

Catching a Falling Financial Knife