Jeff Bezos: Neo-Liberalism's Favorite Capitalist
By: Kai Legette Gideon
Not every day, one wakes up and reads an article about someone becoming a trillionaire, actually never. According to Comparisun , Jeff Bezos, the CEO of Amazon, is posed to become the first trillionaire by 2026. While Amazon constitutes more than 90% of Jeff Bezos’s wealth, he also owns the Washington Post and Whole Foods. Bezos is an exceptional entrepreneur and businessperson. However, this does not justify the wealth accumulated, given the profane inequality in American society. Economic inequality is a constant feature in a capitalist society, but the concentration of wealth represented by Bezos is the result of the emergence of neoliberalism starting in the 1970s.
Neoliberalism is an ideology that emphasizes private markets, deregulation of financial and labor markets, individual responsibility, and limited government. Proponents of neoliberalism emphasize reducing taxes and cutting social services. It is the dominant ideology in American society and a reassertion of class power.
The emergence of neoliberalism resulted in reducing the highest marginal tax rate since the 1970s. From 1954-1963 the highest marginal tax income rate was 91%, 70% from 1971-1980, 35% from 2004-2012, and about 40% from 2013-2020. Over the last thirty years, the top 1% of income earners net worth increased by $21 trillion, while the bottom 50% of income earners net worth decreased by $900 billion. In 1965 , the average CEO made 20 times the average worker, whereas, in 2017, the average CEO made 312 times made by the average employee. Neoliberalism has redistributed wealth upward to the top 1%.
Jeff Bezos has benefitted from neoliberal policies in terms of a tax system that benefits the rich and deregulation of labor, permitting the exploitation of workers at Amazon.
Amazon is known for its quick delivery services, which come at the expense of workers. Many Amazon employees have reported that the company does not provide a healthy and safe environment to work. Warehouse workers have stringent daily quotas to meet. Workers at Amazon have reported they were required to pack packages at a rate of 700 per hour, while others stated they had to inspect and scan 1,800 packages every hour and a half. Employees work data are recorded; they are written up if they are not achieved and could be fired on two or three write-ups depending on the severity.
The strict quota system at Amazon warehouses contributes to the high injury rate compared to other companies. Workers have training on lifting and moving equipment but state they ignore safety protocol to meet quotas. In 2018, a report by The Center for Investigative Reporting, including 23 of 110 fulfillment centers nationwide, found that Amazon's fulfillment centers doubled the national average of severe injuries. These facilities had an average serious injury rate of 9.6 per 100 full-time workers every year, compared to the national average of 4 serious injuries per year.
Some employees work a mandatory 12-hour shift with a thirty-minute and two fifteen-minute breaks. Although some employees state this is not sufficient because it could take up to 15 minutes to walk to the break room. Jeff Bezos is the wealthiest person in the World. Currently, the average amazon wage is $16.27 an hour. Amazon started paying workers at least $15 per hour in 2018. In 2013, CNN reported on Amazon wages, but the company refused to comment on how much their workers made. A survey by glassdoor.com of 20,000 employees found the average Amazon worker made $24,000 a year in 2013. The same year Bezos made $22,745 per minute, only about one thousand short of his employee’s annual wage — $11.3 billion for the year.
Amazon’s low wages and unhealthy working conditions contribute to Jeff Bezos’ wealth. Many also criticize the company for not paying federal income taxes. From 2011-2016, the company paid $944 million in federal income taxes, totaling 11.4% of the company’s $8.2 billion in profits over the five years. In 2017, Amazon profited $5.6 billion, although it paid $0 in federal income taxes. Amazon nearly doubled its profit in 2018 , reaching $11.2 billion. The company paid $0 in federal income taxes and received a tax rebate of $129 million.
In 2019, Amazon paid $162 million of the company’s pre-tax income of $13.9 billion, at about 1.2%. The federal corporate tax rate is 21%, although the company pursues various tax credits and deductions to lower its tax obligation. The elite has accumulated economic and political power over the last 40 years. Jeff Bezos owns the Washington Post, one of the largest newspapers in America. Wealthy elites hire lobbyists and have access to politicians. Acknowledging that this much wealth is held by one individual, in a society with growing inequality, that is the wealthiest country in the World, is troubling. Recognizing this should lead one to advocate for more progressive policies to create a more even distribution of wealth. Higher taxes on the wealthy and ensuring workers unions are essential but only the start, but to get to an end, one must begin.
