The United States of Bezos

Jeff Bezos Dr Evil

We are all Amazonians now. At this rate, Bezos might as well take over the US government:

In his best-selling book “The Four: The Hidden DNA of Amazon, Apple, Facebook and Google,” Galloway cites some arresting statistics: Far fewer U.S. households have a gun than Amazon Prime, by 30 to 64 percent. More Americans have Prime than voted in 2016 (55 percent), or earn $50,000 or more a year (55 percent), or go to church (51 percent). He calls Amazon’s ability to woo Prime subscribers at a $119 yearly cost the equivalent of “entering into a monogamous relationship” with its consumers, who as of 2016 spent, on average, $193 per month. (Non-Prime members average $138 per month.)

From 2006 to 2016 Amazon’s stock price growth surged by 1,910 percent, destroying Sears, J.C. Penney, Kmart, Best Buy, Macy’s, Nordstrom, Target and Walmart.

Perhaps most importantly: Since the Great Recession, Amazon has paid just $1.4 billion in corporate taxes compared to Walmart’s $64 billion.

Amazon is also making inroads into a wide array of sectors and institutions that have nothing to do with retail, let alone selling books:

Bezos has even greater ambitions. His acquisition of Whole Foods, which plunged competitor Kroger’s stock from $31 to $22 per share, is but one step in dominating what and how we eat. Amazon is spending $5 billion on original programming this year and is on pace to outspend Netflix by 2022.

Think about that, Galloway says: A retailer in Seattle as content king. And after announcing a vague health care initiative back in January, stock prices for major health care insurers plummeted — such is Amazon’s power that the mere hint of market entry damages long-standing competitors.

That’s not all. Bezos’ company Blue Origin, with a mission statement that goes not just to colonizing the planet but outer space — “Earth, in all its beauty, is just our starting place” — plans to launch the first private manned spaceflight by next year. Bezos also says he’s going to establish free preschools in low-income areas based on the Montessori method.

Outer space aside: Amazon wants to feed, treat, entertain, educate and medicate America — and that’s just what it’s told us. Nothing Orwellian here, right?

And while Amazon is raising its minimum wage to $15 an hour, the mega-corporation is also striving mightily to replace its human workforce with robots. Perhaps not coincidentally, Bezos has expressed support for the idea of a universal basic income. It’s not hard to envision a future in which a fully automated Bezos empire services all the needs of a jobless, perpetually entertained population — with Alexa replacing the school system, Amazon Hospitals treating the sick, and Amazon Prime Drones equipped with Hellfire missiles providing security. Brave New World is real, and His Fordship sits in Seattle, a bald guy with a creepy laugh.

The Internet of Dumbass Things (IoDT)

Big Brother Alexa is watching you

Writing in Forbes (a few years ago), Theo Priestley threw cold water on the “Internet of Things” craze:

This time last year Gartner said that by 2022 a typical family home, in a mature affluent market, could contain several hundred smart objects by 2022. Several hundred. […]

But if we examine the market as it is today apathy is rife because the current trend by OEM companies is to “stick a chip in it” in order to connect it to the internet, without any real value to the consumer. In fact, the only ones getting excited by the Internet of Things are the vendors.

Take Samsung’s offerings at the recent IFA exhibition. Samsung now have a new SmartThings hub to connect the many devices in your home. There were examples like;

  • The smart oven that waited for you to be on your way home before starting to heat your dinner.
  • The home that switched on lights as you approached.
  • Samsung also added a touch of personality to their SmartThings platform; you can start the morning by texting the app “good morning”, and your house will bid you farewell as you leave.

The immediate response to these was – Why ? (especially the last one!)

What software and hardware vendors fail to answer is why is their connected device necessary for a consumer to own and what value does it ultimately bring ? Consider the ‘smart oven’ above. It won’t actually prepare the food for you the night before. You have to do that. So the convenience is…. ?

I know of a family that has a cutting-edge Samsung microwave/oven combo that cannot even display the clock for more than 60 minutes at a time. Apparently, this is because the screen is actually a tablet computer that needs to sleep. In their disgust, the family has not even bothered to set the clock to the correct time. Also, as far as they can tell, the Wi-Fi connectivity is completely useless and adds no value to their cooking experience. In effect, then, their lavishly priced “smart” appliance is arguably rather stupid.

I thought of this when reading of Amazon’s latest efforts to create an omni-connected happy digital republic:

Amazon is using a surprise hardware event in Seattle today to introduce a bunch of new devices with its Alexa voice assistant built in.

Why it matters: Amazon is in a race with Google (and to a lesser degree Microsoft and Apple) to make its assistant as ubiquitous as possible.

So far, the company has announced, per CNBC:

  • Amazon Basic Microwave, which will cost $59.99.
  • Echo Wall Clock, at $30, to set timers and such.

[Etc…]

  • New Alexa capabilities. She’ll be able to tell when you’re whispering — and she’ll whisper back. She’ll also act on “hunches,” so if you tell her “good night,” she might turn off your lights and check if your doors are locked.

Creepy! More to the point, how does this invasive consumer technology actually benefit humanity? Are we really better off being able to whisper to our devices, or to control our kitchen lights from 100 miles away?