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The economy is not a zero-sum game. If you look at the amount of value created by Amazon, it vastly surpasses that 30 billion. Amazon has driven down the pric
by aeternus 8y ago
The economy is not a zero-sum game. If you look at the amount of value created by Amazon, it vastly surpasses that 30 billion.
Amazon has driven down the price of goods substantially and made a huge variety of products available worldwide. That is of significant value to society, the price-pressure alone benefits all consumers, especially those with low incomes.
There are also significant competitors both nationally and internationally (Walmart & Alibaba) to name a few.
- mantas 8y agoLower prices on Amazon don't happen just because. Somebody didn't earn those money that they'd otherwise do. In the end, it's the same society that earned less. Majority of consumers are providers at the same time. Aside from pensioners and ids.
- aeternus 8y agoThat's not necessarily true. Amazon may provide cheaper distribution/shipping thereby reducing the end-user price even though the supplier is paid the same. Amazon is also increasing the overall reach of each supplier thereby increasing demand and sales volume. It also opens up new arbitrage opportunities. For some people, the convenience of Amazon is worth paying a higher price for certain items. Due to those consumers, sellers like this can make substantial profit: https://www.youtube.com/watch?v=vzrtdUCsYTQ https://www.youtube.com/watch?v=vzrtdUCsYTQ The behavior shown in the video is a great example of the 'pie' actually expanding. The arbitrage seller is creating demand at Walmart and other local businesses, Amazon is making some profit, and the end-buyer is also better off since they gained the convenience which they likely value > the original price + arbitrage margin.