Thursday, March 17, 2011

Retailers Wal-Mart (WMT) (TGT) (BBY), (HD) (SHLD) Using Government to Attack Amazon (AMZN)

Amazon (NASDAQ:AMZN) is under ferocious attack by competitors like Wal-Mart (NYSE:WMT), Target Corp. (NYSE:TGT), Best Buy (NYSE:BBY), Home Depot (NYSE:HD) and Sears (NYSE:SHLD) who are working with the government in an attempt force the online retailer to collect state taxes even though they don't have a physical presence in a state.

The giant retailer is working within the confines of existing law according to a 1992ruling of the U.S. Supreme Court.

There are two major things happening here. One, is Amazon.com has created a better business model and its competitors know it. They've been battling for years to use the government to force Amazon to collect sales tax in states because of that.

Also involved is the strong affiliate program run by Amazon, which its competitors has been unsuccessfully trying to duplicate for years. They're using the current economic crisis and out-of-control spending by federal and state governments, seeing Amazon is vulnerable at this time.

secondly, it doesn't deal with the issue at all of government spending which swept Republicans into the House in the last election. The people have said they want government to be smaller and limited by their vote, and so far politicians, including most of the Republicans voted in, refuse to take that mandate and deal with the outrageous and unsustainable pet projects and programs they have distributed to people in order to garner votes.

Amazon is just a distraction to make it appear it's somehow their fault that state budget in particular are falling short.

The solution is simple: cut spending. Cut programs. Europe has had to get involved with austerity for the very reason they can't afford it. How hard is that to understand?

We should all support Amazon.com and the attack on its fantastic business model which has helped it become a premiere retailer.

As usual, a group called the Alliance for Main Street Fairness to battle the Amazon monster, and whenever you hear fairness in a name, you can be sure it's a lie, as business is built on competition and offering something better than someone else at a price people are willing to pay.

There's nothing fair about business, it's meant to operate in a competitive atmosphere where the better companies win, which make the consumer a winner.

Amazon.com has done that, and the ferocity of the attack on them by their competitors using the government as a rod against them shows how desperate they are, and reaffirms the business model the company uses. No one should be allowed to take that away from them.

As for politicians, they need to get their act together and cut taxes and spending, not attempt to destroy one of the great businesses created of the last couple of decades.

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