Government Deficit =/= Amazon Deficit.
I would suggest that there is one key problem with this story that suggests that America should follow the business model of Google and Amazon; it is as follows.
Amazon and Google must develop high quality products to stay afloat. Investors CHOOSE to invest in these companies and customers CHOOSE to use their products.
The fact that choice exists pushes each of these companies to develop better and better products and expand their market because those same customers and those same investors may choose to pull out.
Unmentioned are the millions of companies and businesses that stop all together because investors and customers were not impressed with the product.
Here is the biggest misunderstanding of this piece: The U.S. Government could theoretically impress us with its sole responsibility to defend us and our contracts and therefore earn the faith of its people.
It; however, does not need to. The government’s blank check (see: Federal Reserve Bank) acquires the excesses of its debt. Tomorrow, Congress and the President could decide to spend $5 trillion on Beanie Babies, and the Fed is required to assume the debt. Amazon and Google do not have that power.
It can also print money at will, devaluing the rest of the money (as debt does) and artificially inflating the economy. This is as if Amazon created a product that was unimpressive, and began splitting its shares to make it seem as if investors now hold more shares. In actuality, investors hold less expensive, equally worthless shares that represent a flawed product.
Finally, the government has the right to demand money from its customers, unlike Amazon and Google. In this case you have a few options:
- Pay the taxes/price of the product and fund products you don’t use, endorse or believe are of high quality.
- Refuse to pay the taxes and be taken to jail
You see, the problem is that we chose to compare an organization whose primary purpose is defense and the accumulation of weaponry and management of the courts with a website that sells stickers and iPhones. Amazon can’t hold you up at gun point to buy a product you don’t wish to buy, the government can.
That threat is often not the literal case, but that’s the implication behind taxes, registration for the draft, etc. You are required to do these things, or else.
The government should not run a deficit. It should produce sound money and leave markets open for companies like Amazon to offer innovation at an expense that won’t shatter an entire population’s wealth.
Also ignored are those companies that innovate, are massive successes and household names, and have enough cash in the bank to make any Super PAC wimper. See: Nintendo & Apple.