Monopolies are sucking up everything in their vortex as the concentration of wealth continues. Examples of monopolies are Amazon, Google, Apple, and Facebook.
Amazon is destroying retail and it’s expanding into the food industry now. Amazon brings in automation technologies which will keep adding pressure on other low wage sectors. When Amazon announced the buyout of Whole Foods, we saw Amazon’s stock go up but everyone else in the grocery industry went down.
Amazon will layoff thousands of employees of Whole Foods and replace them with self-serve electronic cashiers. The move to layoff workers and automate has caused bubbles in higher education debt, automobile loans, consumer debt, and a new round of mortgage debt. Meanwhile, state and local governments remained strapped, and the ordinary services of everyday life are rapidly diminishing.
The trend of a few companies dominating everything at the expense of all others continues and it’s the driving force behind income inequality in the U.S.
As monopolies like Amazon continue to eliminate smaller businesses, wealth becomes more concentrated as it flows to corporate officers and shareholders.
The market cap of tech giants is already greater than the GDP of large U.S. cities. Google is bigger than Chicago and Amazon is bigger than Washington DC.
Facebook, Amazon, Apple, Microsoft and Google parent company Alphabet are the top five contributors to the S&P’s 500 gains this year. In other words, these monopolies are sucking investing dollars away from other companies thus the S&P 500 keeps rising even though the economy is slowing. In this scenario, the S&P 500 is more a gauge of the growing concentration of wealth than it is of the economy.
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