Friday, June 30, 2023

Economics: The Crusade Against Amazon

 



(Drivebycuriosity) - It seems there is a crusade against Amazon. The campaign started around 2014. The firm was growing fast and became too big for the taste of those on the left side of the political spectrum.

Amazon`s growth lead to an attack by liberal magazines & newspapers including "New York Times", "The New Yorker", The New Republic", "The Atlantic & "Fortune". They claimed that Amazon is a monopoly and declared that the firm is exploiting her consumers. The critics ignored that Amazon grew fast because it is cheap & reliable and there were already a vast & growing number of competitors.

In 2014 Amazon dared to reduce book prices and tried to sell e-books cheaper than printed books (no costs for paper, printing, storing & transporting). The media sided with the monopolistic publishers (don`t try to print another Stephen King) and claimed that Amazon`s price cuts would be bad for the democracy ( theatlantic). And Bob Kohn, one of the founders of eMusic.com, a competitor to Amazon, declared on CNBC that Amazon`s prices "are too low" and that the firm uses "predatory prices" (techinsider ).

In 2017 Lina Khan, then a law student, plagiarized Kohn`s accusation of Amazon being "too cheap" and "predatory" ( truth). She complained that Amazon´s prices are "too low" (!), which will drive competitors out of business and will hinder potential competitors to emerge, ignoring the continuously growing number of Amazon competitors ( reason   yalelawjournal  driveby). 

 

             Jeanne d'Arc Of Anti-Business


The Amazon-Monopoly-Claim made the Khan to a kind of Jeanne d'Arc of the anti-business community ( itif.org). In 2021 President Biden made Khan chair of the mighty Federal Trade Commission (FTC), America`s trustbuster authority (inside nytimes).

The Khan isn´t alone. Politicians, especially on the left  side of the political spectrum, want to profile themselves by attacking Big Bad Amazon. Opportunistic senators like David Cicilline are building their careers on Amazon bashing ( wbur). Elizabeth Warren, Bernie Sanders and other politicians are getting a lot attention by harassing Amazon, supported by antifa activists like Alexandria Ocasio-Cortez.

Lisa Khan claimed publicly, that Amazon is "guilty of antitrust violations and should be broken up." (yalejreg.com wsj.com). The Khan uses her power and employs the FTC as weapon in her crusade against Amazon ( bloomberg). Media report that Khan`s FTC is working on a half dozens of complaints and law suits against the company (cnbc  politico slate ). 

Why does this woman hate Amazon so much?

 

                           30 Seconds

The FTC sues Amazon and alleges that the firm used deceptive practices to manipulate consumers into signing up for its Prime offerings and then "sabotaged" attempts to cancel their accounts ( netchoice). "Another day another frivolous lawsuit from Biden's FTC" tweeted CarlSzabo

Observers tested Khan`s accusation and were able to cancel Prime in less than 90 seconds, some needed just 30 seconds (twitter twitter  twitter). Anyway, Khan´s new law suit gets supported by at least 5  Senators & 26 State Attorneys! (twitter    twitter )

Bloomberg and other media report that Khan`s FTC prepares “the big one,” a major lawsuit targeting Amazon’s core business and plans to attack the firm´s market place (where others can sell on Amazon) and the 2-days shipment (bloomberg twitter cnbc  arstechnica).

 

             Hate On Successful Business

Biden Administration and accomplice are wasting the money of the tax payers for ridiculous law suites, feeding a huge industry of law firms. Khan & Co. try to harm a company which is popular for low prices - especially at low income groups (which reminds of the crusade against Walmart) - and they attempt to destroy a service used by millions. 

The crusade is based on ideology and not on facts: Big is bad if it is not Government. The campaign is based on hate  - on hate on successful business. The crusaders hate Amazon because it is big & successful - and more popular than the Biden Government ( stratechery).

No comments:

Post a Comment