Nobel Prize-winning economist and New York Times columnist Paul Krugman explains that Amazon is not our friend in his latest column. Amazon, which offers you the world delivered to your door seems great, sure. But it’s like the instant gratification in the dessert you can’t stop eating–you’re ultimately going to pay the price.
Basically, Amazon is the main buyer of books. It has no real competition. Many of the niceties Amazon offers consumers are possible because it squeezes its suppliers–publishers. Because of that, Amazon has “undue influence” and hurts free market. Readers and writers will pay the ultimate price, even those who currently enjoy their convenient Amazon Prime accounts. Amazon “has too much power, and it uses that power in ways that hurt America.” And the company doesn’t even have its US drones working yet.
