Tech's Big Four Are Destroying Capitalism

Submitted by: normalfreak2 8 months ago in Lifestyle Misc News & Politics Tech


Scott Halloway goes into the argument FOR breaking them up. What say you?  You can read the article here

Here's an Excerpt from the piece:

Over the past decade, Amazon, Apple, Facebook, and Google—or, as I call them, “the Four”—have aggregated more economic value and influence than nearly any other commercial entity in history. Together, they have a market capitalization of $2.8 trillion (the GDP of France), a staggering 24 percent share of the S&P 500 Top 50, close to the value of every stock traded on the Nasdaq in 2001.

How big are they? Consider that Amazon, with a market cap of $591 billion, is worth more to the stock market than Walmart, Costco, T. J. Maxx, Target, Ross, Best Buy, Ulta, Kohl’s, Nordstrom, Macy’s, Bed Bath & Beyond, Saks/Lord & Taylor, Dillard’s, JCPenney, and Sears combined.

Meanwhile, Facebook and Google (now known as Alphabet) are together worth $1.3 trillion. You could merge the world’s top five advertising agencies (WPP, Omnicom, Publicis, IPG, and Dentsu) with five major media companies (Disney, Time Warner, 21st Century Fox, CBS, and Viacom) and still need to add five major communications companies (AT&T, Verizon, Comcast, Charter, and Dish) to get only 90 percent of what Google and Facebook are worth together.

And what of Apple? With a market cap of nearly $900 billion, Apple is the most valuable public company. Even more remarkable is that the company registers profit margins of 32 percent, closer to luxury brands Hermès (35 percent) and Ferrari (29 percent) than peers in electronics. In 2016, Apple brought in $46 billion in profits, a haul larger than that of any other American company, including JPMorgan Chase, Johnson & Johnson, and Wells Fargo. What’s more, Apple’s profits were greater than the revenues of either Coca- Cola or Facebook. This quarter, it will clock nearly twice the profits that Amazon has produced in its history.
There are 14 comments:
Male 1,124
Amazon was cute but now it's going to swallow b&n and toys r us. Not cute anymore. Scary spiral 
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6,906
I have lot of complaints about Google. Why do they racistly think I speak Spanish?

And why does YouTube hate free speech and only defend the social justice Warriors.
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Male 18,342
dm2754 you have to play within their terms of service. If you can make a conservative argument without false facts, racism and death threats, you can stay. Alex Jones and his ilk struggle with that and his opponents gleefully flag his videos.

You guys need to make a YouTube rival that embraces racism, false facts and threats and right thinking people will leave you to your echo chamber.
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Male 18,342
dm2754 LOL, they think I an read Chinese. I can't even find the button that says "change language".... because it's in Chinese.
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Male 913
Read the article. In my opinion, it is riddled with logical inconsistencies and misses the big picture which may be more ominous depending on your world view. These companies don't threaten capitalism, they are the pinnacle of global capitalist theory. 

We, as people, chose these companies to have our money. They invested in technology to lower costs and corner the market in their specialties. Google-information. Facebook- socialization. Amazon- consumption. Apple- hardware to access the other 3. 

As for the periphery of accounting tricks and employment choices, that too is the capitalist algorithm come to fruition. Afterall, the point of a corporation is only to profit without regard to civics, ethics or consequence. 

Scared? Don't be. Remember who the 5 biggest companies in 1900 were? Me neither, but there were times when the West Indies Tea Company ruled the world, there was a time when US steel was king; heck, even Microsoft was untouchable 20 years ago.

These manifestations of capitalism will come and go and all will be equally derided, feared, praised, endorsed and otherwise analyzed. Its all just a little bit of history repeating.
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Male 918
toetagmodel2 slightly disagree. A well regulated market allows competition. The regulations,  copyright and enforcement laws stop competition on these companies. Its a result of corporatism not capitalism. They regularly break laws ans get away with it and they say opps my bad. Examples include refusing court orders, illegal collection of data by maps cars, underpais warehouee staff etc.
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Male 913
jayme21 Fair enough. 
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Male 2,755
Despite what these company make I don't think they are monopoly's so there is not a legal way to break them up. 
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Male 45,596
Okay, so they are Big companies. In what way are they destroying capitalism?  Do they prevent anyone from shopping?  Are they communistic?
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Male 7,267
How would you even go about breaking up facebook and amazon?

I could see how you could break up apple and google pretty easy.  Not sure that it would be best for the consumer but when has that ever mattered.
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3,655
Heres an easy way to get started. 

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Male 9,620
skypirate smartass
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Male 2,194
I thought monopolies were determined, not on how much worth that company has, but on whether or not other players in the market are able to compete given time and a normal amount of resources. When the monopoly leads to higher prices and inferior products, or when the totality of the circumstances leads a government to believe that higher prices and inferior products are an inevitable consequence, then the government needs to step in.

The fact that they make oodles of money is a bit attenuated from that, dontcha think?

The article does hammer home the point that, ZOMG, they avoid paying taxes up the wahzoo. We really need to close our corporate tax loopholes.
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Male 18,342
They're wiping out American capitalism so I'm OK
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