Riddhika Parmar, Week 10: Money and Power
Riddhika Parmar
Week 10 - 2/2/22
Money and Power
Online shopping has become a staple to modern living, for a few key reasons: it’s less expensive, it requires less work, and it’s easy to see if the item you want is available.
However, with so many people relying on online shopping, smaller in person businesses are losing customers and shutting down, while companies like Amazon are becoming more and more powerful . . . and rich. I really noticed it in the pandemic.
My family had started to regularly order everything on Amazon rather than go out to a store to get it. As the pandemic continued into its second year, I began noticing empty shelves in stores. Some of my favorite items have disappeared completely, because stores were no longer stocking them at all. I know some of this is due to supply chain issues, but it also has to do with the fact that certain things are not bought very frequently so the store is just deciding that if some people really want it, they should find an alternative way like shop online. Often, the item can easily be found on Amazon - sometimes it’s even cheaper. But, sometimes it’s much more expensive. So, it’s not always clear if a consumer wins by shopping online or not. Nevertheless, it’s hard to ignore that Amazon does have too much power, in general.
Capitalism is considered to be a good thing for our economy and for consumers, but shouldn’t we be trying to envision and put into practice something called “Ethical Capitalism?” Ethical Capitalism refers to a concept that can bring about long term, sustainable growth of an economy. Capitalists don’t have to be purely greedy or solely focused on self-interest for capitalism to be successful. In fact, a capitalist may even be happier internally by considering the environment or paying fair wages, etc. There has to be a good balance. We should think about the present (i.e. maximizing profits) and the future (creating profit sustainably) at the same time.
One doesn’t have to be sacrificed for the other: capitalists can focus on a higher purpose that helps society rather than harms it. Currently, Amazon has terrible working conditions, especially for drivers and warehouse employees, with not enough training and unsafe environments. Furthermore, Amazon also treats their online sellers poorly, forcing restraints and even dominating the market by producing their own brand products at a lower price.
As many people have said before (i.e., Spiderman’s uncle, Ben Parker), “with great power comes great responsibility.” Companies like Amazon are already wealthy many times over and hugely successful; they should now be focusing on how to become safe, efficient, and worthy of the power that they have.
photo credit: https://www.pymnts.com/
Credit
https://amp.cnn.com/cnn/2021/04/05/business/store-closings-retail-malls/index.html
https://www.thebalance.com/the-pros-and-cons-of-online-shopping-939775
https://www.huffpost.com/entry/ethical-capitalism-its-wo_b_4666325
https://www.workers.org/2021/07/57307/
https://rexroth-us.com/blog/does-amazon-have-too-much-power-over-manufacturers/.
Amazon has definitely profited greatly from the pandemic, but I am honestly not willing to give up the convenience of ordering something on Amazon. I think the ideal scenario would be robots replacing delivery drivers and other workers at Amazon so that we do not have to overwork Amazon workers to extreme and inhumane extents to get our desired packages. I know that Amazon buys out small businesses so that they can sell their items through Amazon which may help small businesses, so maybe if they can value these small businesses more, we can create a better society.
ReplyDeleteThere has definitely been a lot of contriversy around Amazon, especially in the last few years, as it becomes a monopoly. This company has been using unethical monopolizing oractices since the very beginning to shut fown opposing bookstores at first, and then other competing stores as Amazon gree. A lot of people claim that there is no way to accumulate that much power without using unethical practices, so as much I hope that Amazon changes its monetized goals, it is hard to umagine that they will actually change their ways. More power just drives the need for more power; it almost never prompts leaders to look elsewhere for satisfaction.
ReplyDeleteIn life, every living thing has to adapt to its surroundings to survive, but this rule is especially significant when it comes to business. Many companies like Block Buster and Toy R Us have died because they could not adapt to new online standards. Likewise, the only way small business can succeed today is to either to list products on amazon or create an experience that is unique to them. However, consumers also should be mindful of the small business crisis and try shopping real stores when time frees up.
ReplyDeleteHi Riddhika,
ReplyDeleteThat last part of your blog is key. It got me questioning whether such big businesses or monopolies are morally "worthy of the power that they have." Sure, they have earned it and the economy has benefited from their business, but when we delve into the economics of how the company works, often we find a lot of morally questionable systems in place. It is hard to guess the long-term consequences of such companies continuing to grow. With intentions of greed or power, innovation and research can lose priority, preventing the economy from becoming more efficient. On the other hand, overtime, small companies may begin developing greater technology that advances those made by the current monopolies years ago. I would like to think that Capitalism is structured to encourage innovation and check poorly established or monopolistic businesses, but, as we can see, that is rarely the case.
Hey Riddhika! I loved the perspective of power you took up. Honestly, we have all learned that we have to adapt to our surroundings. Likewise, for business, they have to adapt to the conditions they are put through. Over the pandemic, like you said, the longer the pandemic went, the emptier the store shelves got and the store numbers began to decrease. Amazon most certainly gained a lot more profit over the pandemic while popular stores such as Target and Walmart lost profits. It’s crucial for consumers to not only do what's convenient for them but to also realize the loss smaller businesses are facing and hopefully donate or go shopping when they feel safe. I feel like the majority of us will most certainly keep shopping on Amazon because the pandemic showed us how much less effort it takes for us to do so. Amazon and online websites such as them buyout small businesses. If Amazon was to promote the small businesses they are buying, I feel like it would be a win win for them both.
ReplyDeleteHi Riddhika! To be honest, my family does not frequently order things on Amazon. Even through the pandemic, we go out to stores to buy our groceries, even if it does mean that we need to sanitize every single thing we buy. I find going out to stores physically to be a leisure activity (which might be quite odd). I personally agree that Amazon has too much power and there has been much talk about the way Amazon treats their workers. I must admit that the only time I really appreciate Amazon is when I look at their stocks.
ReplyDeleteHey Riddhika! I'm in the same boat, especially at the beginning of the pandemic, when it seemed we would get an Amazon box or an Instacart delivery for literally everything. Amazon has profited so much off this current pandemic, but at what cost? Like you mentioned, there are immense problems with large corporations sacrificing ethical solutions for maximum profit. I do think that we, as a society, need to push for this more, rallying ethical and ecological solutions for large companies to implement. For sure, I think online shopping is easier and convenient, but we need to put our morals in front of us for once, and try to move our current economic landscape towards ethical capitalism. Amazon has earned double or triple the amount of money they need to continue their business, so I think it's time for humanity to push for change in Amazon's workplaces and strategy, so it is safe and efficient for society.
ReplyDeleteHi Riddhika! My family has also shifted to shopping on Amazon considerably more over the pandemic. It's sad to see smaller businesses struggling, especially ones that are family owned. We've been seeing a lot of newer online shops pop up as well over the pandemic. The concept of ethical capitalism sounds very intriguing and improving Amazon and other big businesses' working conditions is a responsibility that should be implemented immediately.
ReplyDelete