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Certain things are only possible at scale. Take Amazon as an example. Its vast scale and vertical integration means that I can purchase something often much mor
by MontyCarloHall 6y ago
Certain things are only possible at scale. Take Amazon as an example. Its vast scale and vertical integration means that I can purchase something often much more cheaply than any smaller competitor can offer it, and have it shipped and arrive on the same day for a nominal fee (something totally unthinkable even 10 years ago).
So while middle class jobs running mom-and-pop retail stores are lost, we may gain a commensurate decrease in the cost of goods. I’m not an economist, so I can’t begin to speculate whether this is a net economic gain. Is it better to have more higher paying jobs but more expensive goods, or fewer higher paying jobs and cheaper goods? Is this a false dichotomy? It’s interesting to note that inflation in the price of pretty much all consumer goods has dramatically lagged income inflation over the last 20 years[0], suggesting that net consumer savings have indeed been substantial.
[0] https://www.patientrightsadvocate.org/price-changes-on-selected-us-consumer-goods-and-services-wages https://www.patientrightsadvocate.org/price-changes-on-selec...
- john_moscow 6y agoIronically, the "trinkets in exchange for land" thing happened to the American natives 400 years ago. I think, most people would agree that it didn't pan out as a big win for them. Now a similar thing is happening to the middle class and I don't think enough people will see it this way before it's too late.