Category: Economics

The Customer Is Not Always Right. And We Need To Stop Over Catering To Consumers. For All Our Long Term Benefit.

When you have the Walmart’s and Amazon’s and The Uber’s and Lyft’s of this world over catering to consumers. It creates a distorted understanding of the true cost it takes to get products or services into our hands. Same goes for our food supply and large monopolistic suppliers. Small farmers are dropping like flies under mountains of debt because the pricing structure is far too skewed for them to survive.

When you only have a dominant few supplying all of our goods and services. Who are able to off set loses by borrowing billions of dollars. And who are able to pass on a price far below true market value in order to stomp out competition. It shifts the balance from the many to the few who have that access. And since this is the current model you have everyone bending over backwards to appease the consumers needs at a near loss and sometimes a loss to themselves. Instead of competing to create the most value we’re instead competing for losses. At the cost of the smaller business who actually has to pay true value for their offerings.

Sure we as consumers are passed the saving in some of our groceries and products and services we use. And getting anything has never been more convenient. We can argue that this is a good thing, we as consumers are winning but are we really? We don’t take into account cost of living has increased ten fold so we need the products we consume at the lowest possible rate.

What is the cost of that convenience? If a large company gouges its suppliers only to pass the the savings to the consumer. The producers will eventually stop producing. If cost of goods is below what it takes to get those goods into your hands there is a fundamental flaw in economic model. Quality suffers and only the small few own the market. Yet we’re all still in this race to lower. Big business needs to stop selling 100 dollar bills at 50 dollars a piece and price accordingly.

Amazon And The Tech World Are Fundamentally Changing How We Operate As A Society.

Depending on what edge of the financial spectrum you fall on. It could have great benefits or substantial cost. We see it all over the major cities along the West Coast. As software companies take over an area. Housing cost become astronomically high. And as mid range jobs can no longer afford to keep up with the pricing increases, homeless rates rise. And only the top earners can afford to live in the area. Yet even they still work hard for mediocre dwellings.

Amazon has created this microcosm of economics. Where they have employees earning top 1% wages. While other employees barely scrape by at near poverty wages in dystopic work environments. All the while trying to cohabitate in the same living quarters.

Trade Borders.

Years ago economics were controlled by trade borders. A shoe was manufactured in another country. Those workers were paid a living wage for their general economic output for that locale. Prices were low because cost of living was drastically lower then that of the consumer nations. Phil Knight the president of Nike once said he’d love to pay third world employees better but it would wreck havoc on the local economy.

Yet here we are trying too make it all work in tiny cities. Where a few blocks can mean the difference between million dollar earners to those living in tents. If you’re part of the software side you earn well if you’re part of the distribution side you’re living close to poverty. All so we can get everything delivered for free.

Which is another economical disaster waiting to happen. Amazon has to be taking a loss in delivery cost. All in order to stomp out competition. Competition that might be paying their employees appropriately and not exploiting workers that simply need a job to live. They also stomp out competition within their product selection and create algorithms to drive sales to amazon only products.

Are Our Taxes Subsidizing Free Delivery?

Amazon pays nearly zero corporate taxes. Tax payers foot the bill to have this economical hurricane come to gentrify their city. Only to find out later it throws everything out of whack. But hey, people have jobs right? Even if its soul crushing and barely earning a living wage.

That being said, Amazon is a great tool and the benefits are plenty. And if you can get on the high side of the industry. Use you mind rather then your body. We also just need to make sure we don’t give them all the keys to the castle.