Economics

How Did Amazon.com Get so Rich and Powerful?

Amazon container trucks
Written by Graffiti Girl

Amazon.com, Inc. is the largest Internet retailer in the world. The company is valued at $1 trillion and founder Jeff Bezos is the richest individual in history, with a personal net worth of $150 billion. So, the average person might be surprised to learn that Amazon.com ran at a loss for many years — and that all the losses were according to plan.

Stacy Mitchell, co-director of Institute of Local Self-Reliance, outlines Amazon’s path to record-breaking wealth and power in the video below. It’s a “story about the failure of antitrust policy to protect competition.”

https://www.youtube.com/watch?v=4dnf55cUIV0
The Story of How Amazon Got So Powerful

…Amazon says its platform is a place where entrepreneurs can ‘pursue their dreams.’ But in reality, the relationship is often predatory. Studies have found that Amazon watches what sellers are doing and then often starts selling their most popular items itself…

~ Senator Bernie Sanders Youtube channel

In case you’re wondering how a company can run at a loss for years, without failing, take a look at the CNBC article linked below.

Both public and private companies often find that they can run at a loss, as long as they either generate cash or have a plausible plan for it. The key is to know where the money to cover the losses will come from and to understand the conditions, either formal or informal, that financiers are demanding in order to keep the credit or equity investment flowing.

~ Tim Mullaney

READ MORE: Be a Boss Like Bezos and Musk: 5 Reasons Losing Money Can Lead to Billionaire Success | CNBC


Antitrust Regulations are Good for the Little Guy

About the author

Graffiti Girl

Graffiti Girl (GG) is star curator at JoAnnChateau.com. She is progressive to the core, and also easily blown away by serendipity. (OK, GG is really JoAnn.) GG's posts signal that some great news or creative content from another website is worth a visit.

6 Comments

  • In addition to worker exploitation, tax avoidance plays an enormous role in Amazon’s wealth accumulation. And their spike in income for 2018 relates directly to Trump’s tax cuts for wealthy corporations.

  • Inability to pay a living wage while unprofitable makes one a hobbyist; refusal to pay a living wage while profitable makes one an ogre. No matter how many billions Bezos accumulates in this manner, he will always be unworthy of admiration.

    • Agreed. Profits made from exploiting workers and/or the environment are devoid of merit. Excessive profit and wealth accumulation are likely signs of large-scale exploitation — and most certainly “unworthy of admiration.”

  • Thanks for raising this issue, JoAnn. I remember those early days when Amazon only traded books, then upended the book industry. They succeed in gaining customers because they offer competitive prices, easy and speedy delivery, and a no-hassle return policy.

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