Thursday morning saw the unleashing of President Trump’s wrath upon Amazon
Straight from the president’s Twitter:
“I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”
For those unfamiliar with Amazon’s business practice, the company subsidizes partial payment of most products by fronting costs to lower individual prices.
This is great for consumers, but disastrous for independent retailers, Walmart not excluded.
By now, everyone is familiar with Trump’s “fake news” slander, but here’s a little known fact to much of America: The founder and chief executive officer of Amazon just so happens to also own The Washington Post.
Only yesterday, Axios released a report labeling Trump to be “obsessed” with the online retail mega giant, causing shares to fall over 4%. And upon publicly criticizing Amazon’s ethical practices the following morning on Twitter, stocks continued to fall an additional 3.8%. Collectively, that’s a loss of more than $50 billion of value following Axios’ statement and the president’s tweet.
Though there is little evidence supporting the Trump’s claim that Amazon pays “little or no taxes to state & local governments,” it’s a well-known fact that the U.S. Postal Service is heavily subsidized by American taxpayers.
Correspondingly, it’s easy to understand, without seeing spreadsheets, how Amazon’s notorious Prime Shipping could in effect cause taxpayers even more capital!
Meaning: It may initially seem fiscally wise to purchase on Amazon, though ultimately, the costs add up through the USPS and Americans ultimately must front the bill themselves.
Caleb Fernandez, writer at The Daily Lev.