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Capitalism | How 'Amazon Prime Day' saves you money, even if you don't use Amazon

Updated: Aug 20, 2019

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It's that time of year again. It's Amazon Prime Day. As a Free-Market Capitalist, you have to rejoice in the fact that this day exists. 

You can literally buy everything you need on Amazon, and have it delivered to your house in two days. Sometimes, you can have it delivered in as little as two hours. 

We have to sit back and ask the question, "Why does this exist?" Well, put simply, it exists because someone wanted to make money. Maybe that sounds selfish or greedy, but that's only if you have a negative view of money, itself. 

Money, as always, is a representation of value that you have provided to others. In a free-market system, that is. Remember, Teachers, Firefighters, and Police officers do not operate in a free market economy. Those professions operate in a completely government controlled economy.

If you pay $1 for a cup of coffee, it is only because you value that cup of coffee more than you valued the dollar. On the flip side, the vendor only sold you the coffee because they valued the dollar more than they valued the coffee. As simple as it is, that small example works for all things in a free-market economy. 

If you hold the above view of money, then you are less likely to look down upon the desire to make money by starting your own business. As long as you are operating in a free economy, you would only be able to make money by providing products or services that the population value. If it wasn't deemed valuable, you would never make the money in the first place. 

So now we arrive back at the fact that someone started Amazon to make money. Good! 

As a study on the effects of Walmart found, the average American family saves over $2,500 per year simply because Walmart exists, whether they shop at Walmart or not. How? All of the competing retailers and grocery stores must find ways to lower their costs/prices so they remain competitive with Walmart for your business. 

We see the same effects with Amazon. In our podcast episode, we detail out the amazing fact that today and tomorrow, not only do you have the option to shop at a large discount at Amazon, but Target and Walmart are both running massive online sales to compete with Amazon for your business. This means that Amazon is saving you money, even if you don't have a Prime membership, or shop at for any of your goods. 

That's the amazing part about Capitalism and the Free-Market. No government issued an order today stating that Amazon must lower their prices, and no regulative body issued an order stating that Walmart and Target must lower their prices to match Amazon. That's the power of a free and competitive market. 

So who wins in this scenario? Well certainly Jeff Bezos and thousands of other Amazon investors, but also the hundreds of millions of people that use Amazon, Walmart, and Target. The economy as a whole wins because the opportunity to allocate dollars to more efficient uses has now presented itself. 

The rest of the beauty? You don't have to shop at Amazon today, or tomorrow. You can spend more elsewhere, make your own products, or buy from a local vendor. Amazon is not forcing you to use their services. They want you to use their services, and they are offering you a better quality of life for doing so. 

That's Free-Market Capitalism- and it's freaking beautiful. 

Subscribe to the podcast by hitting this link, or by searching "Good Morning Liberty" on your podcast app.