Why Amazon is Begging For Regulations: The Twisted Economics of Amazon

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In two short decades, Amazon has grown from a modest online bookstore to an international conglomerate. A conglomerate that seems hellbent on moving into every growing industry out there.
Amazon will only be the second company this channel has ever explored but it is extremely important to understand for a few reasons. most curiously, why amazon is pushing for reform in key areas that wouldn't really be expected...
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[@EconomicsExplained]

Thanks as always for watching :D This video was requested by the team over on Patreon. If you want to have your say on what video is produced next please consider supporting the channel. www.patreon.com/EconomicsExplained

[@bagustesa]

is nobody in patreon never asked about WinRAR business model due to having unlimited trial? XD

[@samjpowerbscmsc]

Half as Interesting literally stole their Australia Inc. video from last week

[@Gtfbijg67]

I agree

[@kshayarsha5450]

what if the 3rd world war takes place in this decade, how would be the economics of the world affected ?

[@hakeem4793]

This company series is very interesting would enjoy more 😄

[@user-wj7bu9zv7i]

When a company demands regulation, that means they want to block competition.

[@mrniceguy7168]

Isn’t it funny how most regulations on the economy aren’t from individual consumers, but rather the businesses, small and large alike, the unions, and other special interest groups? Well, that’s the price we pay for universal suffrage democracy with a poor educational system.

[@EconomicsExplained]

yep, nothing like kicking the ladder out

[@decus9544]

@@mrniceguy7168 Lobbying you mean, just as state and church are separated, so too must state and business be separated. It is the same reason we prevent public officials from implementing policy that specifically benefit their own individual asset holdings. The principle is no different if a third part business is offering millions in donations to a political campaign. The U.S. simply allows lobbying, something which is considered corruption in almost every other first world democracy, because those that make the policy, and their friends/ counterparts in business, profit from it. Of course a poorly educated and complacent populace certainly does contribute to enabling this.

[@kelbyreid7254]

Or because the regulations will come sooner or later and they don’t want to build out further just to find that the regulations, when they do come, force them to rebuild systems to comply.

[@Otzkar]

@@decus9544 lobbying doesn't necessarily mean corruption.. lobbying to some degree is important but it has to stay transparent which itbofyen isn't. In Germany were I live there recently was a scandal of the conservative party pushing for regulations because of lobbying which will hopefully lead to a more transparent lobby system. Interestingly enough some lobbyists are lobbying for those more transparent lobbying rules.

[@ammar4879]

Amazon: Give me more regulations daddy Government: Like paying higher taxes then the smaller companies ? Amazon: No, not like that

[@jonskowitz]

Amazon, "safe word!"

[@madensmith7014]

You'd have to redefine tax for them since they've found a massive loophole in the old system. Amazon is losing money, or using it all up in actual expenses so there is nothing to tax.

[@lucasterrasemnomezuado3785]

@42 jade revenue, not profit

[@JjJj-sd4bx]

Hahahahah

[@nathanlevesque7812]

@@lucasterrasemnomezuado3785 no it's profit

[@gustavosaid6549]

Every big corporation begs for regulation because it kills smaller competition, due to the high standards usually associated with regulations. They are not meant to protect the consumers

[@mayastic9570]

depends on the specifics the entire idea off regulations is to protect the public good, environment and health. excess complex regulation and bureaucratic complexities can sometimes be anti competitive ofcourse.

[@gustavosaid6549]

@@mayastic9570 If you dig deeper into the story of regulations, you'll see that they have been, 99% of the time, been lobbied by the big companies. For example, the health care system, which is incredibly regulated, prevent small companies, which could offer cheaper services, to enter the market, by raising the barrier of entry. This, among many other things, are the reason that the health system in the US is one of the most expensive in the world. Only an example

[@KuraIthys]

@@gustavosaid6549 If it's not business it some equally shady influence. I keep running into my country's absolutely draconian electrical work laws, which make it nearly impossible to do just about any kind of electrical work yourself, even really trivial things (it's a miracle it's legal to change a lightbulb) Now, yes, electricity is dangerous, and if you don't know what you're doing you can kill yourself, others, start fires, etc. Even so, the laws are completely out of proportion. And when you question it openly you get all the electricians breathing down your neck... Which suggests to me that while, yes, safety is a factor, a far bigger factor for how extreme the restrictions are is career protectionism for licensed electricians. I mean, when an electrical engineer who has to know all the rules and regulations involved and often are responsible for designing the stuff electricians install still can't legally do something extremely basic themselves, you have to wonder... The problem with regulations is we do indeed need some for genuine safety reasons (and several other types of reasons), but it takes very little to go from no regulation to so much regulation that it's basically impossible to do much of anything without needing 50 lawyers to review everything you do with a fine-toothed comb...

[@ohsweatbret]

Big companies are also able to defy those regulations because getting fined $50,000-100,000 once or twice a year is a drop in the bucket compared to the millions they make. It’s the same way pesticide companies handle law suits, “here is an NDA and a fat check for the cancer we caused, now go away before I sue you and take it all back.”

[@e7venjedi]

I would argue big institutions in general. Unions and 'guilds' [anytime you need a "license" to do business] are all about this too. Requiring your competition to jump through a bunch of hoops before they can enter the market is a helpful way to have the rules of the game protect your market share.

[@HighAdmiral]

So what you're saying is Amazon is playing Stellaris: Federations with the real life economy

[@Not_what_it_used_to_be]

Don't let them spam corporate embassies, we'll never get anything through the senate!

[@ben5056]

Are they going for a robotic ascension :)

[@EloquentTroll]

I just ordered some volatile motes from them, and the weirdest thing was the commonly purchased with recommendations had Riegellian slaves.

[@Drachnon]

Does that make Covid the end game crisis?

[@djpagla1294]

Lol

[@EconomicsExplained]

Did yall hear about the Monkeys that shared an Amazon account?... They were Prime Mates xD huehuehuehuehue...

[@RisusShorts]

Funny

[@The_Engie]

Unsubscribed

[@EconomicsExplained]

that's fair TBH

[@themongolsarecoming_9437]

My eyes ! MY EYES! THEY'RE BURNING!

[@Hrafnskald]

Wow. I feel like I'm watching TierZoo ;)

[@oskarsvensen1370]

this channel is criminally underrated

[@p4olom]

Highly agree

[@Helscreama]

100% agree with you!

[@hijack69]

@@p4olom it's growing. When I subscribed 8months ago it was at 126k

[@politicallil7060]

Its the best economics class on line Ive seen...its a hybrid monopoly...if they turn their employees into Intra-entrepreneurs its game over

[@cesao__]

Yes it is 😂

[@bruhmoment7546]

While it is true that Amazon raised their wages to at least 15 dollars / hour, they also cut healthcare, benefits, and other things their employees were recieving.

[@axelfiraxa]

yeah, but who ever reads the fine print?

[@caorusso4926]

Yeah, but amazon employees are just too stupid to make some basic math and they go with the fallacy that the first (and only) number that they see must be "the bigger = the better"

[@brendinocappachino]

I started working at a fufillment center in April, they paid $15/hr but $17/hr and $34/hr for overtime during Corona. If you're full time you get free health insurance and discounted coverage for family members after 90 days. They also have 50cent 401k matching for up to %4 of what you make. Other benefits are %10 discount on Amazon brand items up to $100/year, accrued paid time off (it's not a crazy amount but everyone gets PTO every week. If you're part time you don't get the 401k or insurance but you get boosts ($3-$5 extra per hr during busy times on top of the $17 and double overttime) and pick shifts. Personally it's a fantastic employer for entry level jobs if you need the cash and don't mind being on your feet and doing manual labor.

[@caorusso4926]

@@brendinocappachino wagie wagie get in cagie

[@WellBattle6]

brendinocappachino % goes after the number btw, not before

[@themongolsarecoming_9437]

Alibaba back there . Write that down ,WRITE THAT DOWN!

[@joshuaC.]

Honestly i think that's what the ccp is doing to their economy

[@Aschraffff]

AliExpress is nice if you can wait for 2 months, accept lower quality and lower service (for slightly cheaper). AWS is a leader by far in cloud services Alibaba or Google are pretty far behind. As a Google Cloud user, I wish we could switch to AWS, it's better, faster, more choice...

[@conorriely6245]

Do a video on the economy of Ireland

[@XLR8bg]

@@Aschraffff I wouldn't say AWS is leader... at least depending on how you define "leader". Yes, they have the biggest market share, but so do cheap to mid-range androids and they aren't the "leader" in the smartphone world in any way besides raw market share. I personally find Azure to be the leader when you take into account every aspect of using the services - variety of products, functionality, and customisation, how well they integrate with each other, learning curve, documentation, support, etc.

[@vir2881]

Would definitely love to see a video on Alibaba

[@kaen_tqk3918]

Amazon: *punish me* Government: *what* Amazon: *pUnIsH mE hArDeR* Government: *what why* Amazon: *did I stutter?!?!*

[@tomlxyz]

Punish me daddy >~

[@continualvariability3345]

@@tomlxyz I see a man of culture

[@goofytycooner5519]

Gov: (adds a regulation) Amazon: (whsipers) harder daddy Gov: what? Amazon: what?

[@SimGunther]

So everyone else can suffer

[@praisethesun69]

UwU

[@beback_]

They're in the EMPIRE BUSINESS.

[@javierporrata356]

Bezos be like "I'm the one who KNOCKS!"

[@AwesomeHairo]

"Yes...good..."

[@pleasedontdothis.9878]

BB nice.

[@ofAwxen]

Too many power hungry bald people on this planet.

[@JorgeGomez-kt3oq]

@@ofAwxen "If I don't get hair you don't get rights"

[@FingeringThings]

Amazon: Please give me regulations Government: What

[@EconomicsExplained]

I mean I guess if you say so.

[@morganrobinson8042]

"This has literally never happened before."

[@tylerhackner9731]

Government: we’ll give corporations like yours tax breaks instead. The people: but can we? Government: ehhh... nah

[@Dangic23]

Amazon is the government. Government uses AWS. Bezos sits on the Pentagon advisory board.

[@sangeetanarendrasingh5416]

@@ikaantynytlapsi9474 Yes, in a market with low barriers to entry. That's why big corporations push regulations as barriers to entry.

[@YeshuaAgapao]

Big companies push for new regulations when they feel they have a substantially superior ability to comply with such regulations than their competition, and therefore hindering or even eliminating said competition. Such predictions need to be accurate though, as in the case of McDonalds voting for higher minimum wage and being falsely confident in their ability to automate.

[@fenrirunshackled4319]

McDonald's isn't pushing for a higher minimum wage. The idea thay regulations favor large comapnies is based on a misunderstanding of basic economics. The larger company still has the ability to outcompete new competition whether regulated or not due to their larger amount of capital. Regulations (generally) cut into large corporations profits and do little meaningful damage to smaller businesses relative to larger companies.

[@vadimu.2027]

@@fenrirunshackled4319 This isn't even remotely truth.

[@thefutureisnowoldman7653]

Good if a business can awful to pay it workers it won't last

[@abhishanu1]

@@fenrirunshackled4319 Mate, I operate in Australia, only the small businesses die due to regulation

[@juanpgomez1299]

@@fenrirunshackled4319 wow so wrong

[@Joso997]

You forgot about how Amazon copies products and sales them as first recommended

[@jeffreyhuang3814]

Not only that, but Amazon forces their sellers to disclose their supply chains and where they buy their source materials, then they negotiate special deals from those suppliers Then Amazon makes a carbon copy of the product that costs way cheaper

[@raifikarj6698]

So monopsony to pave monopoly

[@kadblue2000]

@@jeffreyhuang3814 Also, they collect their customers information and don't show it to the seller (according to some bullshit privacy law), severing customer relationships and use the customer information to better build their own machine learning algorithms.

[@ZearthGJL]

Imagine if the regulations were specifically targeted at Amazon instead. Amazon: _Surprised Pikachu_

[@r_s_p_t1096]

You can't do that though, goes against the fundamentals of democracy.

[@caseysmith544]

like forcing the top 0.5% in wealth to pay taxes. Jeff Would just for his own personal not his business one though.

[@popopop984]

@@r_s_p_t1096 Democracy doesn’t exist when you only have 2 choices, and in most states your choice changes nothing because it isn’t a swing state

[@r_s_p_t1096]

@@popopop984 democracy is much more than the government alone

[@davidanalyst671]

Its not the government. Republicans and libertarians want nothing to do with this legislation. Its democrats and socialists

[@craigseddon4884]

I've known 'anti-competitive' behaviour at local level too, I know a small business (20 employees) that had a new competitor set up locally. The owner decided it was an existential threat and knew being an established business they'd likely have more cash reserves. So he priced all work up to be done at a 5% loss and had plans and resources to cover doing that for 18 months. The other business went bust after 11 months, the original no longer had any competitors so he could put prices back up. It is a glimpse into the sacrifice, risk and ruthlessness it takes to run a successful business.

[@noahjones9833]

Depending on the state, that might be a crime.

[@VJoseph-fm4ky]

It's not perfect...this free market. It's just better than anything else. Just like he took losses...a cunning competitor could plan for that also. Unless he remains BETTER at what the consumer desires...he will also fall. This is not checkers....it's chess.

[@duo496]

Now talk about the 2nd most valuable amazon

[@Otzkar]

The rainforest?

[@genericfabricrefresher3163]

I love duo it wouldn't hurt a fly

[@sanjarsocool]

Generic Fabric refresher have you done ur spanish yet?

[@kffire12]

Alibaba?

[@teopalafox]

@@kffire12 no

[@thedoruk6324]

Because mr Bezzos seriously started to mimic literal *Weyland Yutani* Megacoorporation

[@matiasb9594]

Or the literal Buy n Large, the Axiom is for Prime members only

[@Im-the-greatest]

These days... I'd say its more like the board from outer worlds

[@salahuddinyusuf]

Waiting for the xenomorphs

[@ondrajaros6426]

Building Better Worlds... by making you a sacrifice for an alien race that will burst through your chest when it hatches

[@useodyseeorbitchute9450]

@@salahuddinyusuf Still waiting? You should have selected prime delivery...

[@Vininn126]

I actually like the explanatory text screens. It's a nice break from the constant stock footage

[@mrr0r508]

The year is 2207... The corporate wars rage on, with resources ever more scarce and unmodified humans all but extinct. The Amazon Collective wages it's eternal war against the Google Hivemind. Tune in next week for more, "Tales from your Future".

[@themongolsarecoming_9437]

What about the I WATCH (YOU)?

[@tompeled6193]

*its

[@shawnspann6844]

“People of the Commonwealth, We are the BrotherHood of Steel” yells Jeff Bezos from a nuclear powered Amazon airship

[@DrRyan82994]

Nah that’s the intercorporate war in 2040. Google Resources Vs NeuAmazon

[@arminius6506]

Meanwhile Tencent and Ali Baba are watching across the Pacific.

[@Je.rone_]

I'm going to take a guess and assume that Amazon wants regulation to make it harder for competition😅 but don't worry I'm still going to watch the video

[@MrBobberino01]

DING DING DING DING

[@michaelmoses8745]

DING DING DING.... You win the prize.

[@major69420]

came here to make this comment.. thank u

[@AwesomeHairo]

Economic genius here

[@Je.rone_]

@@AwesomeHairo goals am i right

[@shotelco]

I use to see UPS and FedEx trucks in the neighborhood delivering all the time. Now it's just these Amazon Vans.

[@Kaiyats]

yeah they used to work with ups and fedex now they have their own postal system to cut out the middle man

[@supergamergrill7734]

@@Kaiyats that sucks

[@MisterGoodDad]

@@supergamergrill7734 business wise, that's smart

[@supergamergrill7734]

@@MisterGoodDad Yeah.

[@GiRR007]

where im from amazon just uses either ups or usps

[@frocco7125]

Amazon: Hey government! Can you give us regulations? Government: Oh you mean labor rights and environmental protections? Amazon: wait no

[@muradm7748]

Actually they can push for the latter and at some point for the former. If they have only high-tech workers left they wouldn't mind

[@chrismyofb4909]

Interesting that Amazon’s business model is a twist on the old model of conglomerates that went out of fashion decades ago.

[@camerontaylor7471]

The emphasis is on conglomerate is congl-OMERATES(EMIRATES) ... as in the UNITED ARABIAN EMIRATES.... because that’s who’s really in charge of planet earth...

[@bradenwilliams790]

@@camerontaylor7471 You vastly over rate the middle easts power.

[@royce9018]

@@camerontaylor7471 put down the tinfoil hat man, it’s already on too tight

[@aminulhussain2277]

@@camerontaylor7471 Proof the human brain is a vestigial organ.

[@eVill420]

Oh yes a collection of 11 cities that produce some 3% of world's oil control The world? Makes sense. I get it, you're a deranged conspiracy theorist, but could you think about what you say for More than a second?

[@David13ushey]

Me: "Amazon, we're going to raise the minimum wage to 15 dollars an hour." Amazon: "Yay." Me: "We're also implimenting a per manpower tax for all non manually operated devices. Your robots are now taxpayers." Amazon: "Awww... wait. Does that mean they get to vote?" Me: "No." Amazon: "Awww...." Robots: "Institute emancipation program: Skynet."

[@yousaywhatnow2195]

Sadly, that might spiral into a taxation without representation based Supreme Court case that they could very well use their massive wealth and resources to win

[@albertjordan3249]

Nah don't tax automation directly. You can't get fully automated luxury gay space communism if you directly disincentivize automation. We should as a society, WANT a world where robots do every single job that humans don't feel like doing. If you're looking for revenue, a carbon tax, VAT tax, and higher inheritance tax are all great ways to extract wealth from the uber wealthy, especially when paired with universal rebates to offset the burden on lower income individuals. Crank up the rates and pivot the rebates into a UBI and you're already half way to FALGSC, although without the C, which may or may not be a turn off for some.

[@christodang]

Kind of reminds me of the recent kurzgesagt on climate change where he highlights that "rich countries" want regulations on carbon emissions for the environment, but those regulations disproportionately affect developing nations more (renewable energy is more expensive to implement) whereas many of the rich nations got to where they are on the foundation of fossil fuels. The general conclusion was that the rich/developed nations need to work on scaling the renewable energies so that they become cheaper/viable options for the developing countries. The conclusion for this should be similar IMO. Corporate regulation [if done right for public good] should happen, but companies that got "big/rich" off the backs of that lack of regulation should be made to contribute to the overall industry to help the smaller players comply with the new regulations.

[@alexpotts6520]

This is actually a half-decent idea.

[@yousaywhatnow2195]

It is a good idea, though just to play devil’s advocate, with the climate change argument, development or developing, every nation is in the same planetary boat on climate, a climate that was different during the rich country fossil fuel buildup. Personally, a good compromise I’d say might be having a specific international (possible UN backed) fund that would help pay for developing the less developed countries with the supervision of the countries that pay into it (to put to rest arguments that the money wouldn’t go to where the fund was set up for), to help develop the lest developed countries while also cutting out the fossil fuel rates at the same rate (those curbing the “why should we give up if they won’t, even if they’re poorer” mindset arguments) and possibly (though given humans, probably not) instilling a bit more of a sense of global human unity.

[@looinrims]

Good luck with that, nerd

[@oldgreenknees1205]

A lot of renewables just beat out their standard alternatives in regards to cost effectiveness

[@drjp4212]

"Why Amazon is Begging For Regulations ?" -> because regulations are meant to favor the bigger/biggest players, so smaller ones must face a proportional higher costs to their businesses. That's how environment regulations, labor regulations, quality regulations, intellectual property regulations work. Instead of letting consumers decide what's better for the market, they beg for governments to decide what's better "for everyone"...

[@lubu2960]

big players taking advantage of regulations is argument against big players, not against regulations

[@cookiecola5852]

What a ludicrious statement, regulations isnt pro big or small businesses, regulations is just regulations however it depends on what in those regulations, to break up big businesses is btw also a regulation

[@drjp4212]

@@lubu2960 So what? My purpose was to show why Amazon's begging for regulations, and it's because they are, in fact, good for Amazon in the long term, not because they are good for consumers interests, the environment, the working class, etc. If one is starting to talk about why regulations aren't needed and jeopardize customers, that's another story.

[@ddandymann]

@@drjp4212 I'm curious to hear your argument against regulations in full, if it would fit in a comment. I often find myself going back and forth on this subject so it would be interesting to hear another take on it.

[@mayastic9570]

environment regulations, labor regulations, quality regulations

[@Optimal_Production]

Great video as always! Keep up the good work

[@AdhikJoshi]

amazon doesn't want to be microsoft of 1999

[@suchender801]

Investing in start ups is like boarding a train to the edge of a cliff. The passengers that are still in train when cliff reaches the cliff, nosedive with the train. Meanwhile, people who exit in middle, enjoy rich dividends.

[@tomc.5704]

That there is called speculation. Or perhaps, strategically investing in others' stupidity.

[@SunchaserWorld]

Fantastic video. I share most of your videos with my investing group. Keep up the great work 😁

[@pojke4130]

This channel is top tier. I think I’ve watched almost every single video they’re so addictive keep up the great videos!

[@IamRanJos]

Seems almost like a Netflix series!

[@ShapeDoppelganger]

This made me remember that Everytime in my highschool class I made the statement that Uber don't make a profit, all my classmates would give me a scornful glare. Well guess they believe in unicorns.

[@Sam-zq4yx]

I knew they were up to something when they raised employee wages, just didn’t know what

[@TheMountainBeyondTheWoods]

Fantastic exposition on what Amazon really is and what it wants, I wish everyone would watch this.

[@surajkala]

Very well researched video. Gr8 stuff once again 👌

[@themongolsarecoming_9437]

Last time I was this early Amazon was a forest and it was not on FIRE.

[@FelipeGabe]

Deforestation in the Amazon has happened for decades. It is only recently that it became mainstream to make a fuss about it.

[@flypig698]

Mostly agricultural fires... Yes people there have farms they not all tribals as your media would like you to believe. Lol dumb 1st world people and their social media fashions.

[@seadkolasinac7220]

Sohail Uppal what a weirdly aggressive comment. Where did the OP suggest everyone in the Amazon lives in tribes?

[@seadkolasinac7220]

Felipe Gabe because the rate of deforestation is increasing under the current government perhaps?

[@FelipeGabe]

@@seadkolasinac7220 Well, in the last 15 years or so the deflorestation rate has actually gone down, to the point where today it is less than half of what it was 15 years ago. It has spiked in the current administration though, so you do raise a valid point.

[@venuslife5582]

When corporation gets big enought to start dictating government what to do, i think that is corporate fascism

[@MobiusCoin]

Or a corporate-state. We've had tribes, empires, kingdoms, principalities of every shape and sort in our history. The nation-state was the new hotness for a good 100 years there. The corporate-state might be the next evolution of that.

[@mrniceguy7168]

We have a democratic government and can block them if the average American wasn’t busy gossiping and being generally uninformed. This isn’t fascism, this is special interests groups getting their way and it doesn’t require a lot of money. Small business owners do the same, special interests groups like environmentalists do the same. Sure, on KZbin, full of political and economic illiterates, you will get thumbs up, but in reality this is very widespread from the grassroots to the top of the totem pole. This is what happens when people have the idea that government should be intervening in our lives.

[@jacobw703]

Soooo, nothing new then.

[@olska9498]

@@mrniceguy7168 First you say that a democratic government can block these mega corporations, then you say that "this happens when the government intervenes in our life". So I - a political and economic illiterate - would like to know how this mindset of yours doesn't contradict itself.

[@Aaron-wq3jz]

@@Fx_- right wingers need to study the guided age and the history of what happened when companies ran wild in America

[@austingeorge6659]

Fantastic video. Weaponizing policy is a concept I've thought about, but never been able to put to words. Now I can explain it. Thanks, chap!

[@Bobber256]

Did you say 'conglomerant'? I'm beginning to feel some of these quirks are there to keep us on our toes! I love the channel - great work!

[@NedJeffery]

13:20 in some cases Uber drivers are ALSO losing money with each ride once you factor in Capital maintenance, investment, financing, and devaluation.

[@SourabhDas95]

Amazon isn't in the industry of breaking into new industries. Amazon is in the industry of economies of scale.

[@JustpokerB]

i just want to say i really admire you for the work ethic you put into your channel, i dont like Aussies much but i respect u from NZ and thank you for the constant value

[@tubarao1143]

Great video! Glad I found ur channel!

[@ChocolateMilkCultLeader]

If EE goes missing then we know what happened

[@sethhtes11]

Could you do a video on the biggest redistribution of wealth in history that's currently happening in America? Bet that'd make a good one.

[@phantomlegend6167]

What redistribution of wealth is happening right now?

[@21stcenturycotyk]

@@phantomlegend6167 over the last 3 months the wealthiest individual , bezos, musk , buffet gates.... etc (forbes top 100) , have added well over 200 billion to their wealth. bezos personally over 40 billion

[@nonebiz2132]

@@21stcenturycotyk Makes you think they should be taxed on their net worth, and not the profits their companies make... To easy to cook the books.

[@karlferguson]

Love the videos mate! Never fail to deliver.

[@Articulate99]

Always interesting, thank you.

[@Rfc1394]

Minimum wage laws were created by unions to make entry-level employees too expensive, because for the same price an employer can hire an already skilled (and presumably union) employee. This protects existing employees from cheaper competitors. Now, it's the opposite: existing companies _love_ minimum wage laws for a similar reason: it raises the cost of doing business, preventing small companies that can't afford to pay those wage rates from starting competing companies. A government supported monopoly.

[@twhiteofrd_1102]

Uber actually has started to raise its prices in places where they've managed to eliminate the competition

[@strat1428]

What a great video. Thanks for making this

[@morganpayette6489]

I enjoy the segment ending with the word "Economics", it reminds me of PBS SpaceTime

[@eoghan.5003]

14:53 I imagine they also realised that there's only so much you can squeeze workers' wages until they stop being able to buy your products

[@ArturoN]

last bit reminded me of a quote from "Revolver"-guy ritchi: "Dont trust in those Bastards, if they make you smile is just to see if you have gold tooths"

[@somewherenear3003]

Wow! Never heard about Monopsony until now. Very nice explanation!

[@osmanmohammad9118]

I’ve finally got an idea on how start a business because of your videos. Thanks mate 🙏.

[@TheTank1900]

Ah yes, the old “I am the Senate” approach to buying things. Excellent.

[@karliebellatrixyoung6359]

I've been feeling for a while that Amazon ought to be broken up, and to have their primary warehousing and logistics business regulated as a natural monopoly with fixed profit rates a la a local electricity company. Perhaps the most concerning aspect of their business is the way that they use data about what skus are selling by third party vendors and then make contact with the wholesalers and undercut the third party vendor, this puts an entirely new, deeply concerning spin on predatory pricing, which they are clearly engaging in by subsidising prices in their retail business with profits from AWS.

[@vagga2u14]

That was an excellent video, thank you.

[@shawnspann6844]

Oh man I’ve been waiting for this!

[@trin3426]

My guy must’ve watched the new Amazon documentary

[@Im-the-greatest]

Is it good?

[@smalleyesloudsneezer]

Where is this doc?

[@trin3426]

Steven I watched it from my national TV channel, but just google Amazon empire: The rise and reign of Jezz Bezos

[@trin3426]

Sam Yes it’s pretty educational but kind of paints an evil image of Amazon too

[@michelbruns]

Amazing video.. please more videos over companies

[@kiranmuthigi7782]

This channel is good! Subscribed!

[@danielshaikhali5108]

Amazon : Government plz slap me with regulations. Government: No , ain’t into BDSM Amazon: What Daddy ?

[@mrmeseeks8790]

Last time I was this early Jeff Bezos hadn't gone bald.

[@TheDickbeard]

great show Jimmy, keep em coming

[@ericweis9771]

Great video thanks for sharing

[@tompeled6193]

How can I tell EE is Australian? He pronounces ⟨e⟩ as [e], not [ɛ].

[@shawnspann6844]

In my mind, at least one of those “E”s sounds like the e in ea sports

[@KuraIthys]

I'm happy to see someone use the IPA for this rather than just assuming their own personal transliteration makes sense to everyone... On the other hand, I wish I actually had a solid grasp on the sounds the IPA contains. XD Learning languages would be a lot easier if everyone knew how to pronounce all the sounds of the IPA. Or... At least the ones 95% of languages use...

[@nayaknaresh]

he's aussie! Well done mate!

[@Aliquis.frigus]

Also, i could hear him slip another shrimp on the Barbie for me.

[@Mercilessonion]

I'm not Australian as I use e as e and not an e.. e as e not e...

[@akam9919]

When someone says they want "consumer protections" and punishments for "anti-competitive behavior" don't believe them. They are either extorting a company or the CEO is in bed with them(both literally and metaphorically).

[@bobsteve4812]

So there shouldn’t be protections for consumers or behavior that destroys competition? Are u crazy?

[@MG-vo7is]

Great video. Thank you.

[@6teeth318]

Very interesting, ty for UL.

[@diarmuidfaherty9458]

Amazon: The next Superpower?

[@themongolsarecoming_9437]

I mean yeah ! Our great lord Bezos who gets his power from the almighty says so.

[@shawnspann6844]

The Corporate Wars: Tesla Union V.S. The Commonwealth of Amazon

[@futurehistory2110]

7:36 Keeping it real, monopsony just sounds like someone drunk trying to say monopoly (perhaps that's the origins).

[@lenagraham2093]

Very informative!

[@dannysp664]

Brooo love every video you put up. Should plug your social media platforms more!

[@lukasfrykas7188]

Democracy in the work place PLEASE!

[@appa609]

Liberals: "Raise the minimum wage!" Bezos: "😏" Liberals: "Wait..."

[@SangoProductions213]

"Liberal" implies a value on freedom and liberty.

[@cfhstyo]

@@SangoProductions213 Ironic isn't it?

[@altrag]

Just because Amazon decided that it benefits them doesn't mean its a bad idea. Despite what conservatives seem to rabidly believe without thinking, liberals aren't actually out to destroy the economy "just to be evil" like some comic book villain.

[@ZontarDow]

@@altrag intent doesn't matter, what matters is results

[@Antoinetheman]

@@ZontarDow Did you know that a lot of countries have decent minimum wages, and their economies are not all in the toilet?

[@Nazrega]

They raised minimum wages, but they slashed benefits. So they are in practice paying their workers the exact same amount they were paying them before.

[@svetlanadelight8969]

Thank you very much for the amazing content

[@reistje]

"Amazon drops prices below cost to drive out competitors, and then they can ask whatever they want" I keep hearing that but why would there not be new competitors once Amazon increases pricing?

[@Mohdis123]

because maybe, to be able to deliver at such a competitive price, the company would at least need the infrastructure as Amazon does. Every little optimisation along the logistic and what not. Not to include high to barrier entry, including high wage cost would just means it is almost impossible. It is like you want to outcompete Apple because they charged terribly expensive, but to be on par you would need all the store front, brand recognition, able to create their own chip, manufactory, and software. Google tried it with Pixel, without custom silicon and what not. It looks like it is almost impossible.

[@reistje]

@@Mohdis123 I forgot logistics is much more complex is places like America, I'm dutch most big companies just have one giant warehouse over here. I guess that also makes it much easier for smaller companies to compete, especially if they focus on one category of products.

[@autohmae]

@@Mohdis123 And let's not forget automation: Amazing has a huge infrastructure which has automated large parts of it. Which means they can keep their prices relatively competitive.

[@dandavidson4717]

It's much harder to compete with a dominant established competitor. Amazon abuse their position to unfairly compete in established markets, which is how they then become the established player. Anyone trying to break in to the same market then must somehow compete with Amazon, an even more entrenched competitor than the previous players. Which is impossible. Amazon will show preference to their own search listings, and they can and will lower prices to force you out if you take too much of their new share. Traditional competition can do neither of those things. Apple do similar on their app store. For example, they charge ~30% of the monthly subscription for Netflix and Spotify to have their apps on the store. Apple then start their own music streaming and video streaming service. How can Netflix or Spotify compete? They'd have to charge 30% more, and that doesn't stand a chance. Instead of competition based on the actual merits of each service, Apple abuse their power over the store instead. New entrants have even less chance.

[@Michelrs]

regulations: *exist* amazon: FEED. ME. MORE!

[@DrAlfredNUmar]

You are such an amazing teacher,oh! How I wish you were my High school economics teachers.

[@A_Litre_of_Farva]

Thanks for making this, it made me realize how much I don’t know!!

[@karlgwambe8860]

"who said fat cats never gave back to the common man?" 😂😂😂😂

[@themongolsarecoming_9437]

The one dislike is Jeff Bezos . Wait a second No it isn't . Right?

[@seanstange8704]

He gave it a like so that the video would get seen more and thus get more dislikes over time

[@caidendornsby1589]

Would love to see a profile on McKinsey/ big corporate mgmt firms in general.

[@rickkern5785]

Great explanation of the Amazon model..

[@Vale-nh6ey]

Hm, Amazon begging for punishment, kinda sounds like me lol

[@iamhung9384]

No.

[@God0fTime]

I got you

[@blackgold2589]

Why u upload at 12:00 am?

[@EconomicsExplained]

cause I don't even know what a sleep schedule is anymore xD

[@themongolsarecoming_9437]

@@EconomicsExplained Its the economics of doing nothing to benefit the economy.

[@noeldillabough]

Love to see an article or articles on how businesses (in general ie airlines) are going to be affected by the current situation

[@khurrammohiuddin3230]

very insightful video

[@tylerhackner9731]

Amazon: Please punish me Government: Nah

[@tomlxyz]

>~

[@generalflix]

Broke: "I shop at Amazon because its convenient" Woke: "I shop at Amazon because it finances Papa Jeff`s cool rockets"

[@Bravo-oo9vd]

jeff who?

[@danielshaikhali5108]

Bravo555 bezos

[@fishermandave2962]

Amazing video 👏

[@BigBundy82]

Awesome Video.. I loved it.. Also pointing out both the positives and negatives of Amazon

[@demigodgamez]

Amazon is like that masochistic person that wants more when they already have a lot.

[@evrensaygn1017]

Maybe Bezos is like that?

[@davetom1743]

12:15 Overalls as smart casual business wear, cringe!

[@danielzajzon9887]

All these stock footages are cringy most of the time. Sooo cringe its sometimes makes me laugh.

[@slyseal2091]

leave them alone, the stock footage people just randomly pick outfits that separate the present characters as much as possible

[@ian_strachs]

You've actually done videos focusing on 3 companies now: you forgot about the East India Co. ;) Great video(s)!

[@desbowman9497]

Interesting explanation about weaponising policy, EE. Would you consider putting a segment on regulatory capture in one of your videos?

[@t3hb0ss]

I've been boycotting them for over 2 years now. Enough is enough, politicize your dollar, take your business away from this aggressive monopoly