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Looking at revenue is completely meaningless. You need to look at margins to see the effect on a company. Imagine you take a loan of $1000 to buy $1000 of gizmo
by TangoTrotFox 8y ago
Looking at revenue is completely meaningless. You need to look at margins to see the effect on a company. Imagine you take a loan of $1000 to buy $1000 of gizmos and then sell them to me for $1300. You don't have $1300, you have $300 after covering your overhead costs. And in the case of Amazon you have far more overhead costs than just the costs of goods. And the government also attaches significant tax increases when you pay employees more -- paying an employee $10 more is substantially more than $10 in cost to the employer.
Amazon's 2017 financials showed a final net income of $3 billion. They do reinvest aggressively in their company so a fair chunk of their costs are going to be 'voluntary', but that voluntary expenditure is the very action creating all these jobs. In any case, this is going to be a very substantial cost to them.