Inequality Will Eventually Hurt the Rich, Too - Most people spend whatever extra money they earn. The rich, however, are disproportionately likely to save any additional income, which means that income concentration saps consumer demand and threatens the viability of new investments

And how did his business grow so large? Do you concede that Amazon is a monopoly? If not, tell me who their competitors are. Since you’ve obviously taken a basic economics class, you’d know that a free market economy functions the best when there is competition in the market. Competition makes commodity prices affordable and increases wages since labour demand increases.

Amazon has no competition, in fact Amazon has not been making any profit for a long time. According to economic theory, they should have gone under a long time ago. They haven’t because investors keep throwing cash at them since they have a surplus of it. This is how all these tech startups function now. They are able to undercut their competitors keeping their margins extremely thin or even suffering losses for long periods of time because they have so much cash.

What happens eventually? There is no competition left since all the local businesses die out. Look at Uber and Airbnb, they’ve killed local taxi companies and hotels because they’re backed by investors who have infinite money. In the long run, the investors who are already rich make all the money while local business owners become poorer. Even the people who work for these companies get worse off because as corporations get bigger, the bargaining power of the workers get weaker.

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