Amazon: A Threat To The American Economy

Amazon’s motto is “Work hard. Have fun. Make history.” Over the past decade, tech giants such as Google, Facebook, Apple, and Amazon have emerged to become successful money making businesses. One of these companies, specifically Amazon, owned by fifty-four year old Jeff Bezos, has risen up to become one of the top ten largest tech companies in the United States, and it is expected to create a trillion dollars in sales this year. Amazon has a net worth of a whopping 125.7 billion U.S. dollars. Although many consumers find Amazon convenient and enjoy the cheap bargains, this electronic commerce is a threat to the American economy. Amazon is bad for the American economy because it is shutting down other companies, destroying jobs, and stopping

Retail stores such as Barnes & Noble, Macy’s, and Footlocker have been forced to close down stores because of e-commerces such as Amazon. Macy’s, a victim of Amazon, had suffered a 39 percent drop in profit and a 19 percent decrease in stock price subsequent. Other types of markets such as grocery stores like Costco, Walmart, and Target are also being destroyed by Amazon. On August 28, 2017, Amazon had acquired Whole Foods. Amazon is now a threat to supermarkets because of the changes added to Whole Foods. Going out to shop for groceries may now be replaced with the click of a mouse. Therefore, Amazon is bad for the American economy because it is shutting down other companies.

Furthermore, Amazon is bad for the American economy because they are exterminating jobs. Because many retail stores have been forced to close, the jobs these stores have produced are now gone. Although Amazon plans to create 100,000 jobs, this effort is meaningless though considering the amount of jobs Amazon destroys is much greater. Fewer jobs are bad because it affects the economy. A good economy has many jobs in order to be successful. Henceforth, if Amazon closes retail stores, they are eliminating jobs which is bad for the American

Usually people associate inflation as a negative object, but a healthy economy needs inflation when it is low and stable. If there were no inflation, there would be deflation which causes slower production and economic growth. Amazon stops inflation though with their cheap bargains. Inflation is when prices go higher, but the value of money goes down. Deflation is the reduction of prices in an economy, so inflation is good because it helps the economy grow. Moreover, if Amazon stops inflation, the American economy cannot grow. Ergo, Amazon is bad for the American economy because it stops