Wednesday, October 22, 2014

Amazon is a monopoly? Hold on...

So you’re the proud parent of a beautiful, inquisitive 15 year old daughter. How sweet. You learn over the dinner table that she has a boyfriend. Oh no! So you kindly ask the name of said boyfriend, then immediately call the police accusing the unknown young man of raping your daughter. Because that’s the best way to make sure he never, ever rapes her. Right? Right? Yeah, didn’t think so.

So here we have this big business, Amazon, accused of being the nastiest thing to come along in decades. Monopoly! Monopoly! Death to Amazon! Because it’s going to get too big soon and it will destroy the world. Might as well curtail its power now so we won’t have to do it later. Right? Right?

The problem with a business like Amazon(or Netflix, or Google) is that we don’t really know where this IT market is going to end up. We’re in the infancy stage of a massive overhaul of the way we do business: with immaterial goods  constructed mostly of knowledge, maybe the old paradigms of governement intervention isn’t up to par in dealing with this new high tech world. Add to that the slow decline of the technologically-inept and the rise of the mulit-tasking nerd and there’s no way to predict where we’ll end up. Or if Amazon and it’s likeminded business endeavors will be good for the world or not. The only thing we know is we don’t know.

What we need to do is wait for the market to reach maturity, to stabilize at a point where we can study the impact of the new world order. Then we can ask if the governement should intervene. Not before. Because if we act now we may end up doing more harm than good, end up having to fix something that wasn’t broken in the first place. The marketplace is fluid, it will never be too late to change the rules later if we realize the marketplace is at the wrong equilibrium point. Wait and see.


Get to know the kid, and trust that your daughter is wise enough to chose a good boyfriend.

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