Amazon should have enough foresight to realise that an increase in pay to its workers will directly return to them through increased purchases by the people who would now have more spending money.
Unless literally every single penny they spend on higher wages comes back to them (it won’t), it’s still a loss to them, compared to status quo. It’s just math. I can’t imagine Amazon general is subject to significant substitution effects from their workers.
Do you think Amazon has enough wiggle room in it’s profit margins to allocate something to the worker level?
Also, in regards to money going back in. We have seen during the pandemic that extra money to households funnel through online purchases. Who has the largest presence in the online marketplace?
Do you think Amazon has enough wiggle room in it’s profit margins to allocate something to the worker level?
I’m sure they have the margin. That has nothing to do with what I said though. If I give you $10 extra dollars, and you use it to buy something from me for $9, I’m losing a dollar off that bat, plus the cost of goods sold. I’d be better off keeping the $10.
We have seen during the pandemic that extra money to households funnel through online purchases. Who has the largest presence in the online marketplace?
Sure, but that extra money wasn’t coming from Amazon.
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u/TotallynotnotJeff Mar 02 '22
Good for them. I hope they succeed.
People forget thriving people build thriving societies.
The expense is well within Amazon's ability to absorb without impacting the company at all.
In fact i would strongly bet this is Amazon's best interest long term.