Capitalism Doesn’t Cause Monopolies, Lack of Competition Does
Nothing pisses me off more than anti-capitalists, especially those who own book businesses and blogs. They may hate the label, but they’re capitalist. If you own something, you’re capitalist. If you’re using a laptop or an iPhone sitting at Starbucks complaining about capitalism, you’re a capitalist.
You can’t blame capitalism for every single little thing that’s gone wrong in society if you’re using products developed by private enterprise for your convenience. And you hate capitalism because you think it’s led to numerous monopolies over the past century because you were told this in school.
You were told government is the answer and the antidote to capitalism when government is in fact, a monopoly within itself. Now, government might by your answer and antidote, but it’s illegal for government to own property.
There’s one way government can even possess property: Taking it by force from private individuals. Government takes, taxes, and institutes regulatory laws all by using force. Its legislation, unconstitutional as it is, is passed by holding citizens at gunpoint.
In a way, I’m continuing the Amazon onslaught, because we’re going to take a look at the growing concern that the average pay of Amazon employees is roughly $12 per hour, per an article on Russia Today.
The article states Amazon Founder Jeff Bezos makes over $11,000,000 an hour; which if you multiply this by 8,760 (number of hours in a year) he makes $96 billion a year. If rounded off to the forty-hour work week, Bezos makes a far more realistic, in billionaire terms, 22.9 billion per year.
This is one reason why people are gravitating from capitalism and embarking in the ever-growing socialist movement sweeping America. Now, as I’ve stated before and I’ll state again, socialism simply doesn’t work.
If it worked, Venezuela would be one of the more prosperous countries in the world today, and the Soviet Union never would’ve fallen. Some point to Scandinavia, which is mislabeled as socialism; I’ll be sure to place some links to this claim after the article and upon reading them, you’ll find that the Nordic nations have more elements of capitalism than the United States; I hate to burst the socialist’s bubble.
As I stated last night, Amazon rules the book and e-book market by a wide margin, at least until Kobo struck a deal with Wal-Mart to place the Aura-branded ereader on their store shelves. This alone will be a major blow to Amazon.
Now, while Wal-Mart’s treatment of its employees is outright abysmal as well, it’s going to great some much-needed competition in the market. Not much, but it’s a start. As stated in my Truth About Labor Unions article last Monday, it was an increase in technology and competition that brought about change in the workplace, not labor unions as labor unions decrease the need for competition.
In other words, capitalism helped bring about change in the workplace. It’s a little-known secret labor unions wish you never came to find.
Labor Unions, Corporate Monopolies, and the Ohio Valley
Are corporations evil?
Is capitalism evil?
Okay, Todd, how?
Because corporations, per this video in the Ron Paul Liberty Report, hate capitalism as much as a socialist. Americans are often tricked we’re living in a nation whose economic inequalities were fueled by capitalism.
This is a lie; they were fueled by corporatism, which if one reads my article, The Beautiful Truth About Capitalism, I provide a nice scenario of the capitalist model versus the corporatist model.
Did corporatism cause the union epidemic we see today?
Yes. At least in the Ohio Valley. Let me give you a timeline:
1. Corporations, in this case, steel corporations, owned not only the business but also the local store, which was the nearest store. They owned the places of residence and everything their employees stepped foot on if they stayed local. As you guys can see, this is a monopoly.
2. These corporations set prices to the local store sky high, and unless one wished to drive into another town, where the same thing may occur, were forced to pay these prices set by the corporation employing them to feed their families.
3. They paid outrageous prices for their places of residence.
4. They were, however, able to walk to work, but many worked in harsh conditions.
5. Thus, labor unions were born.
However, what they’re not telling you, and what they don’t want you to know, is in this scenario, again, we’re talking about local regions in the Upper Ohio Valley, is lack of competition, in this case almost zero competition caused this fiasco.
Imagine had there been four, five, six, or seven competing companies?
That’s capitalism, and it’s something anti-capitalists need to know and understand.
As I stated in The Truth About Labor Unions, a highly sensitive topic to many, many individuals either pro or anti-union, competition is the key indicator forcing the following:
1. Fair prices at such stores.
2. Better work conditions.
3. Better pay.
4. Better benefits.
5. Better retirement plans.
6. Compensation for family if sole provider of income is injured or killed on the job.
How to Fix the Amazon Issue
I see and read about a lot of people complaining about how Amazon treats its employees, yet they continue to hit the buy button. They fall in love with Amazon’s convenience such as online shopping and Amazon Prime.
So, how to fix the Amazon Issue?
You need to fuel competition. Give Amazon something to compete against. Which is why, for us authors, we need to be ecstatic about Kobo’s deal with Wal-Mart. At the same time, we need to stop giving Amazon exclusive rights to our books, and open publish. Or, better yet, we could harness our own e-book stores right on our website.
Participate in the following:
1. Build Your Tribe
2. Build Your Email List
3. Build Your Reputation
As stated in my previous article, if you engage in these three avenues, your growing list of loyal readers won’t care if your book is for sale on Amazon, Nook, Kobo, Apple, wherever. They’re going to want to read your work.
They won’t even care if you sell your stuff on your own website if you’re that tech-savvy.
Better yet, Kobo is going to even provide competition toward Amazon’s Kindle Unlimited with its own devices, a monthly subscription for $10 per month; at least that’s what I’m reading.
It’s like the decision to indie-publish versus traditional publishing; at the end of the day, your readers won’t care how you publish. If your story is good enough, they’ll buy your work. Ditto for retailers.
In fact, Amazon’s price matching has declined in recent months, some articles even stating they no longer price match. I placed my open published work on Amazon for two weeks to see if they did price match (it’s listed for free everywhere else). Amazon refused to price match and after I took the book off (it was simply an experiment to see if they still engaged in price matching), I knew Amazon was on its way to getting exposed.
What Pisses Me Off About Peoples’ Anti-Capitalist Complaints
People are trained to hate capitalism because they think these corporate and even small business owners exploit their labor and their money.
However, when you place an order on Amazon, you’re fueling them. You’re contributing to the same thing you’re complaining about. I’m not saying it’s on the market, but at the same time, it’s on the market.
In a free market society, people decide the winners and losers. It’s not the other way around. Sure, corporations have lobbied for and received unfair subsidies while others get taxed disproportionately.
Yeah, barriers to entry have been built due to higher regulations corporate lobbyists have pushed for. Why? It deters competitin. There’s much less competition in the workplace.
In America, we’re free to spend our money, for the most part, anyway we want. If you’re complaining about corporate power yet continue to provide them the same thing that gave them that power in the first place, you can’t complain. You’re part of the issue.
Next time you, say, shop for books, see if you have a local bookstore in the area and shop there. Yes, you have to drive, but at least you’re supporting local business. Check other stores. Check Kobo, who I’ve been buying books from like a madman, check Nook, check Apple, check all other retailers.
Better yet, as an author, my plan is to place my books at cheaper prices when I open-publish Northern Knights, which is the book I experimented in KDP Select, with so-so results, but nothing that drastically boosted my ranking.
Will I keep Northern Knights on Amazon?
For the time being, yes, but I’m going to make a strong push for, and set the book cheaper, on other sites and hope Amazon doesn’t change its mind about price matching. If they do, I’ll likely take it off and continue to use the power of my growing blog to deter people from Amazon.
Capitalism is a great thing, a beautiful thing when used properly. Capitalism isn’t corporatism, but corporatists will tell socialists and other capitalist-haters it is capitalism all day long. Corporations love regulation, especially large ones, because they can afford them without having their profit margins affected while preventing serious competition.
However, in a capitalist society, we the people have the power to shop and spend our money as we see fit. As for me, Kobo will be receiving even more business, but it doesn’t mean I won’t shop elsewhere, too.
When it comes to clothes, per se, I’ll go local once more, in an effort to save the dying retail industry before Amazon borderline monopolizes on it. If I engage in online shopping, it’ll be from real retailers, not Amazon.
We can all do our part, we the people, can do our part, and put an end to Amazon’s growing monopoly in every single retail field. Remember, capitalism creates competition, corporatism does not and what Amazon loves, as well as its lodge buddies, is corporatism, which is what really created America’s Gilded Age.
Rockefeller, Carnegie, Morgan, and others were never capitalists. They were corporatists who fueled later unrest in the economy. Guys, it’s time to combat the corporate giants. Shop local. Shop at real retail stores. If you’re going to cyber-shop, do so on outlets where you see stores in your local area. Stop Amazon in its tracks before this becomes too big an issue.
I’d like to thank everyone for coming across My Freedom Flame, please come back soon.