3,090 karma · joined December 11, 2009
Before: Accel. Dropbox. Accel. Founded Chartio, YC S2010. TechCrunch.
twitter.com/daniel_levine
It's not that Amazon is giving its money to customers. Bezos is very cleverly taking advantage of a loophole in how taxes/accounting works. Over long periods of time, cash flow and income will generally converge. But in the short term, they don't have to. Bezos runs the business around cash flow while minimizing income. Corporate taxes are based on income. The reason for that is because the tax code wants to make sure a business actually has the cash to pay taxes, before owing them. Straightforward enough.
As Bezos bluntly states publicly, he focuses on free cash flow. That number is going through the roof, and while portions of it go into lower prices, a lot more of it goes into investments in new products/infrastructure that will further grow cash flow while effectively deferring net income. That balance is extremely difficult to manage, and Bezos is probably the best the world has ever seen. All that said, it's not quite right to say that they're donating profits to consumers.
"Reliable cars" have built in positives for the consumers productivity (they're reliable).
Yes, the majority of economists have considered that and it's why they love automation so much! As costs to produce goods come down, competition (in a competitive market) forces the end price down. Then the end consumer saves money! In your example if the costs hit zero while the consumers still have money then it's a complete miracle!
For a capitalist, the best state of affairs is when everyone can consume her products with enough margin to beat other possible places to invest capital! If automation is adopted, it's because it gets a factory closer to that point.
I think it's fair to say that there are instances of technology causing variable effects on the labor market over time (particularly variable effects on different parts). That's not a particularly interesting result though :)
More broadly, economists overwhelmingly think that increases in productivity lead to improvements in quality of life of people over time. Either by improving their labor situation (better, safer jobs) or their consumer situation (cheaper goods, more choice etc).
The logical counterexample would be technology we wish we would not have created, of which I can come up with a few examples, but far fewer than the reverse.
Heck, I'd be interested in seeing the ratio between total employment numbers before the advent of the car in the late 1800s and automobile-related jobs at their peak (US only).
And I know even more where there isn't a clock. You can always pay dividends instead of selling or going public.
Too much hyperbole. For some examples see my previous comment.