Trump is lashing out at Amazon — but does he have his facts straight?
He recently tweeted, “I have stated my concerns with Amazon long before the election. Unlike others, they pay little to no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”
NYU Professor of Economics, Nicholas S. Economides refuted this claim stating, “Of course it’s hurting some retailers, but I don’t see what’s the importance of that, that’s old news, I mean, that’s the way competition works. Some people are successful and some people are not. It all depends on the efficiency of the distribution system, and it depends on what people want, and what the consumers want.”
Amazon uses the USPS, FEDEX, and UPS for “last mile delivers,” since these packages are only going a short distance, according to the Wall Street Journal. USPS also gives Amazon and other large retailers a discount for these types of deliveries.
Trump’s tweets came a day after Axios published a story saying that he is “obsessed with Amazon,” and might look to change its tax treatment. And they seem to be right as this is not the first time he’s tweeted about Amazon’s deal with USPS. Regardless, his claims about the company don’t seem to actually check out.