Amazon: The Most Successful Charity In The World?

January 30, 2013 in Daily Bulletin


We’ve previously looked at the absurdity of Amazon’s business model. After Amazon announced its fourth quarter results, Matthew Yglesias thought of a theory as to why the company does things the way it does. He writes:

“Amazon, as best I can tell, is a charitable organization being run by elements of the investment community for the benefit of consumers. The shareholders put up the equity, and instead of owning a claim on a steady stream of fat profits, they get a claim on a mighty engine of consumer surplus. Amazon sells things to people at prices that seem impossible because it actually is impossible to make money that way.”

Read more here.

Source: Slate