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Matthew Waterman

Force America To Be Great Again

I'm not a fan of slipperly slope reasoning, but..

Have you ever stopped to think about what the ultimate consequences would be if Amazon (AMZN) were to continue to grow to a point that they put every brick and mortar retailer out of business?

There is a known problem that exists at physical stores who carry the same goods as Amazon, which is that a person can go window shopping at the mall for example, and then just pull up the same item on their smartphone and order it from Amazon right there. If Amazon continues to sell at a lower price, then why wouldn't consumers just continue to do that? It's as if the face of the store actually looked like that to shoppers.

That creates a unique ethical dilemma for the government to figure out.

Should all of those stores vanish, there will be far less options available to compare goods to each other. It's simply not possible to get a good idea about what something is like online if you can't put your hands on it. Would consumers then be less likely to buy that good at all? 

The current environment has benefited the manufacturers of every product sold online, to my knowledge anyway. Book sellers have managed to sell electronic books, but could Coach (COH) continue to sell handbags, and could Estee Lauder (EL) sell makeup without a makeup counter to demonstrate the latest cream?

Macy's (M) and Kohl's (KSS) have already announced that thousands of jobs are going to be lost from store closures, and I'm certain that thousands more already have been. Less jobs means a shrinking economy. Once there is nobody to give Amazon free advertising, then it stands to reason that those same manufacturers could collapse as well. Amazon might have a large percentage of the pie by that point, but if the whole pie is shrinking, how does that help anyone else?

I say this is a government problem, because they would have to implement controls that equalize the advantages of selling items online. I'm not precisely sure how they could do this, other than taxing online sales at a higher rate, and then subsidizing the sales at local retailers.

President Elect Donald Trump has called Amazon a "Tax shelter" in the past. 
After all, he would know what one looks like. If he wants to really make America great again, then one way to help with that would be to keep American businesses in business. Or maybe the Amazon business model will change to have retail locations all over the country, that's a possibility too. They can't be a monopoly though, we just don't let companies do that. All I know is that we can't keep doing things the same ways we have been.

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