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>“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” said Amazon CEO Jeff Bezos in the announcement. “We’re excited about this change and encourage our competitors and other large employers to join us.”

Ha ha. This shouldn't have taken much thinking Jeff. It's a no brainer, no? The more you pay your people, the more they can spend on your stuff.



> The more you pay your people, the more they can spend on your stuff.

This is the economics equivalent of a perpetual motion machine.


Isn't that what an economy is?

Are you telling me that if your employer stopped paying you, you would keep spending the same as you do now?


No, that's not what the economy is.

Here is how it works. Let's say Amazon doubles someone's salary, from 30k a year to 60k a year.

And let's say that previously, this person was spending 1k a year on Amazon.

Since the worker now has double the salary, let's say it doubled the amount that they spend at Amazon, from 1k to 2k.

Doing simple math here, you see that Amazon is now spending 30k more, only to get an extra 1k in revenue, for a total decrease of 29k.

Arguing that this person will spend all 30k of this additional money at Amazon is ridiculous.

And even more ridiculous would be arguing that this perpetual motion machine actually creates value, above and beyond 30K.


If I paid my employer more than they pay me, I would be broke and insolvent.


But do they also get free Prime membership?




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