So in the end Amazon is actually saving a bunch of money as well on top of killing mom and pop shops.
For the many low wage Amazon workers – both full time and temporary – set to receive a raise thanks to the just announced boost in minimum pay to $15/hour, the news is certainly a big plus. It should also be noted that had Amazon not been subject to intense scrutiny and criticism from the likes of Bernie Sanders and others, Jeff Bezos never would have responded with such an aggressive move. That said, if you think a little beyond the surface level about why he’s doing this now and what his real motives are, it becomes clear nobody should take this move at face value.
The real tell here is Bezos’ immediate emphasis on raising the national minimum wage to $15 an hour under the law. Pushing for a forced across the board wage hike everyone knows Amazon can cope with better than current or potential competition, makes his company look good while likely harming other business models in the process.
This is how Bezos rolls, he’s willing to take short-term losses to dominate a market. What sacrifice is a wage hike if he assumes everyone else will have to do it as well? He knows Amazon’s got the resources and capability to automate in a way others simply can’t. Bezos see this as a win-win if he can also get everyone to pay $15 an hour. He gets to look like a leader, while also positioning Amazon for even greater market dominance in the long-run. You really think Bezos is advocating for a national minimum wage increase because he’s suddenly a Bernie Sanders populist? Don’t be stupid.