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I have mixed feelings about using Amazon as our model of success. On the one hand, Amazon monopolizes some product categories. It has had almost no net margin
by latj 12y ago
I have mixed feelings about using Amazon as our model of success.
On the one hand, Amazon monopolizes some product categories. It has had almost no net margin for two decades. In those 20 years it has failed to pay a single penny in dividends to stockholders. All of this is not to mention kindle and Amazon's relationship with literary world.
On the other hand, people are generally happy with Amazon. Customers like everything funneled into one interface and they eat prime shipping up like candy. I do too. Yum.
Its execs and white collar employees generally seem well fed and happy. There are some questions about the conditions of its fulfillment center workers but honestly I think they will all be replaced by robots in the next 10-20 years as robot prices come down.
Amazon is a giant corporation governed by an non-democratically elected board operating in very opaque ways.
But, Amazon is also essentially a not-for-profit organization that agrees not to get nonprofit tax protection in return for being allowed to operate with less oversight.
EDIT: Oh. I just looked it up, it turns out Amazon doesnt pay much tax...
- opendais 12y agoI think Amazon is a perfectly reasonable model of success. Even if I don't particularly like Amazon. They succeeded without doing anything unusually unethical in the marketplace. If be relatively average ethically and a corporation worth billions isn't a model for success in a capitalist society, what is? Honestly?
- latj 12y agoYeah, I think I agree with you. Here is how I score it. * Is the company good for workers? Some fulfillment center workers say "no". From what I know of the company and people who work there I'm going to say a solid "probably yes" it is good for workers. * Is the company good for the owners? I'm saying "no" on this one because the average amazon stockholder has only made money from Amazon by speculating the price would continue to rise as it always has and sold it off at some point. * Is the company good for the customers? It probably does squash out some competition (and thus choice), but overall I'm going to say "yes" it is good for the customers because people generally seem happy with Amazon. * Is the company good for suppliers / producers of content/goods? I honestly cant answer this one. * Is the company good for society? I think I'll say "yes" to this one because they offer competition to other industry giants with AWS, new phone, etc. I am not a fan of kindle or their work in that industry. By the way I like the phrase "unusually unethical".
- opendais 12y ago> * Is the company good for suppliers / producers of content/goods? I honestly cant answer this one. Producers? Yes. Wholesalers? No. Amazon will do its best to cut you out if it is a noticeable amount of money. > By the way I like the phrase "unusually unethical". Hah, thanks. I wish I had higher expectations but I think capitalism makes that hard. As for the rest, I mostly agree.
- greenyoda 12y ago"In those 20 years [Amazon] has failed to pay a single penny in dividends to stockholders." That's not very surprising. Public companies typically don't pay out cash dividends if they think they can get better a return for their shareholders by investing that money into growing their business. And for shareholders, getting returns in the form of long-term capital gains instead of dividends generally lowers their tax liability.
- bduerst 12y agoExactly. Execs actually try to avoid giving out dividends these days because: 1) It attracts investors who are looking for a short gain, and not interested in the long-term success of the company 2) It becomes a seasonal expense that investors expect. If dividends stop, it sends a bad signal to the market.