Mynopsony of Amazon

As everyone knows, Amazon is a very popular company. There is, however, a much darker and sinister side to the company that many choose to ignore. A ‘mynopsony’ is a company that supplies most or all of the jobs in the region and also dominates a single market, driving down consumption prices and has advantages in paid wages. For more on the definition, I found Investopedia to be good for describing. They are also a very dangerous place to work. I have people I know who worked there, that are now in their walkers by age 40.

Personally, I no longer order from Amazon and haven’t since 2018, when I found out how scummy the company is. As an investor, I will not touch the company with a 20-foot pole. This was around the time that I started finding out about their horrific worker treatment. Stories from injury and death on the work floor, to being told to keep doing deliveries and not being allowed to go home during dangerous and deadly natural disasters. I also heard stories of Bezos asking for government handouts to keep the company going and his workers paid during during this Pandemic. Never mind the face that he made enough during this pandemic to pay each worker a 100,000 bonus and still be richer than he was before it started. They are now facing strikes and unionizations.

It’s almost as if you don’t pay your employees a living wage while worker them harder and harder that they will eventually have nothing left to lose. Who knew? As a business man myself (investor) and one that is looking to go into more structured business, I’ve learned that the first rule to business is to treat your employees well and pay them a living wage and good benefits. Saves an extreme amount of stress and time in the long run, not to mention money. Amazon is a dangerous company, because they are not an outright monopoly.

Amazon chooses to dominate many markets but refuses to pick just one part of the economy to identify as, which makes this even harder and how they are able to dominate so many markets. For more on this, read the interview transcript at the top as well as this final link on the bottom. If Amazon is not regulated, we are looking at dystopian future for more small businesses coming into the market, further stagnating it, and decreasing innovation. Lack of competition does that. No competition, no reason to get better.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: