Amazon Creates American Jobs Selling Chinese Goods

Symbols: AAPL, AMZN, BBY, F, GM, TGT, TM, WMT
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Ironic, eh?

On a day when love is in the air, Amazon (NASDAQ: AMZN) is showing American job-seekers a little affection by announcing a new one-million-square-foot fulfillment center in Middleton, Delaware. According to TechCrunch, the center will create approximately 850 full-time jobs and cost $90 million to build.

In other words, 850 Americans will soon get the chance to help the dot-com retailer fulfill orders for electronics, toys, apparel, shoes, jewelry, furniture, and a plethora of other items that are manufactured in China.

This isn't the first time a company that sells (mostly) foreign goods has provided work to Americans. Japanese automaker Toyota (NYSE: TM) is one of the larger employers in America.

Of course, the value of the jobs gained must be weighed against the value of the jobs lost. Toyota is a Japanese company, so it makes sense that the majority of its cars are manufactured in Japan. But when an American company – let's use Apple (NASDAQ: AAPL) as an example – decides to manufacture everything it makes in China, the company is taking away jobs from Americans in order to serve its own bottom line.

This is an old argument, to be certain. But unlike Apple – or Ford (NYSE: F) or General Motors (NYSE: GM) or any other American company outsourcing its work – Amazon hasn't eliminated any jobs by selling imported goods. For better or worse, it can only sell items that are already available. So while it is to blame for choosing to manufacture the Kindle Fire in China, Amazon cannot be faulted for stocking its virtual shelves with Chinese goods. Truth be told, there aren't many American alternatives. And when there are, Amazon typically sells them as well.

The only jobs Amazon could be accused of eliminating would be those of its retail competitors. If Best Buy (NYSE: BBY) is forced to close any number of stores, the company's nearest competitors – Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) – will not be blamed. But Amazon, an online-only retailer, will be considered the chief source of Best Buy's demise. Thus, Amazon will be the one who is blamed. You know, for out-competing the competition, for providing the customer with a better distribution channel, for offering competitive prices, and for implementing a more convenient and more reliable online portal.

That, my friends, is what you call “efficiency.” Sending jobs overseas to stretch the dollar and save a buck is not the same thing at all.

Follow me @LouisBedigian


 
 
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