Automatically translated from Basque, translation may contain errors. More information here. Elhuyarren itzultzaile automatikoaren logoa

Amazon, the paradox of the digital economy

  • We think the essence of doing business is to buy cheap and sell expensive, to nuance nuances. That's how your apple fruit works, for example. But this simple model doesn't work for the tech companies that have appeared in the last 20 years. Amazon took 14 years to get its first notable benefits in 2015. Uber has never made a profit. And yet, they continue to grow. How do they work?
Argazkia: Denver Post
Argazkia: Denver Post

Amazingly, the real business of Amazon is not so much selling books, as the Alexa domotic device or selling online. Its real business is the control of the fundamental infrastructure of the economy, as is private electricity or water companies. The book was nothing more than the product that in its beginnings it prioritized, due to its profit margin and ease of transportation, and in order to obtain a website on the Internet.

A story that is happening frequently in the United States: a small company that has fewer and fewer sales in its traditional establishments decides to put its products for sale on Amazon to change the situation. The number of sales is increasing rapidly, but a few weeks later Amazon finds that it has put products similar to the best in this business on sale. Now, it doesn't have anywhere to sell your product over the Internet, except for Amazon. He realizes that he's fallen into a trap. Your business needs Amazon, but at the same time, you have to compete with it inevitably.

For example, the image that the village’s agricultural fair is controlled by a large agricultural company. The company has invited local farmers and farmers to sell their products. Subsequently, it has investigated its activity and started to sell identical products, but at a lower price, in addition to withdrawing the jobs of local producers to prevent customers from finding them. If someone complains, the company denies him permission to sell, and in the village there is nowhere to sell more than at the fair.

Amazon has under its control the only network market, all sales data, a broad advertising system and, at the same time, is capable of producing any product. It invites small businesses to their platforms, investigates their activity data, copies their products and leaves them out of business and without options. And for all of this to take place, it only takes a few weeks. In the event that companies express their complaint or object, Amazon kicks them out.

Also, Amazon has just purchased almost half of the cloud computing industry (i.e. the same internet infrastructure), a large part of the online advertising industry, one of the major supermarket chains in the United States. At the same time, it is spreading to the pharmaceutical industry, to real estate and to the distribution of packages.

All these services have been collected on the Amazon Prime. In this way, each product can help the other and keep customers inside the Amazon consumption bubble. Unlike the usual (and with the approval of Wall Street), the profits should not be given to investors: the company invests in continuously growing, which also serves them to pay less taxes. Some trillions have become a mere monopoly of dollars, secretly, but in plain sight.

Photo: The Independent

The fact that the U.S. economy
is “Amazonice” in the Amazon ecosystem has serious consequences for the lives of millions of people. Working for Amazon is a tremendous task, you know. Many former workers have reported in the New York Times that the working day never ends and that everyone has ever finished crying in their offices. One woman reported that if she had a son or daughter, she could not be raised at work due to the extension of the working day. Another didn't sleep for four days, the usual, they say.

And yet, they're all workers in Silicon Valley, who have their desires for actions, their holidays, the possibility of going out, their nice workplace, etc. But outside Amazon's headquarters, the situation is much worse. In product repositories, it has often been found that employees use diapers (as the required fees cannot be met if they go to the bathroom) and that this is a dangerous working environment. Extreme cases have also occurred: for example, once workers from an Amazon affiliated warehouse were forced to continue working even though a colleague's body was stuck on the ground, until the ambulance arrived. The cause of this death was probably related to the working pressure, which forced to move in a hurry for 12 hours a day, going around 24 kilometers, at a temperature of 45 degrees.

Just like in warehouses, the logistics companies that hire Amazon are forced to work at an impossible pace. These companies have been denounced on numerous occasions for breaching safety standards and for paying too low wages. This type of situation has led to half a dozen fatal road accidents, as well as the death of several domestic animals, by the hand of unsuspecting and overflowing workers.

In many towns and regions, Amazon is the only one to offer employment, and without the trace of trade unions or other workers’ powers, it will hardly change that situation n.Amazon exerts brutal pressure on workers and subcontractors to bring them to the extreme of resistance, both because of the company’s own culture and because the enormous challenge of keeping a business at such a high pace requires it. Working for a monopoly means excessively low wages and inadequate security measures, resulting in a terrible number of victims of physical and mental problems. Work insecure and hard or not.

At the moment, Amazon has
only small corners in the Basque Country, but its services are becoming more popular and the more people buy, the more economic value it has to transform the economy into its image and likeness. In Bilbao, for the time being, only work is being done on the construction of a warehouse of 8,000 square meters, almost without logistical activity at the moment.

With every product that Amazon sells in the Basque Country, the player takes a small step towards the system that sets the rules of the game. It has organization and power similar to a government, but without social contract or representation.

Amazon doesn't care too much about the cost or the benefit. He's fishing and he wins in big waters.

Reporting translated into Basque by Diego Pallés Lapuente

 


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