5 Feb 2018

Economists, Amazon, and Corruption

In my view, these tweets are some of the most damning indictments of economics in recent times. They show the kind of corruption that is rife in the field. Economists are seldom free agents or objective. They are in the pay of the companies who they are commenting on. In the case below it is Amazon who are promoting this form of corruption.

The irony with Amazon, is that without the sales-tax exemption on internet sales in the USA, they would never have survived.

Amazon are in the news as they look for sweetheart deals to move their corporate headquarters and build new fulfilment centres. The left-wing US publication, Working In These Times, analyses this in a story titled: Cities Scrambling to Attract Amazon Because It “Creates Jobs” Are Being Sold a Lie.

They point out that Amazon's business model means that they have to build more warehouses anyway:
“If your business model is getting things to people within 24 hours, you have to be everywhere,” Jones said. In other words, paying a company to locate a facility they have to build anyway makes no sense."
The article also cites figures that show that the arrival of an Amazon warehouse has little or no effect on overall employment levels. They have a negative impact on wages and conditions:
A 2016 study from the Institute for Local Self-Reliance found that hourly wages at Amazon fulfillment centers are far below the typical warehouse worker, and employees work more hours to compensate.

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Keep is seemly & on-topic. Thanks.