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Sen. Bernie Sanders practically vents steam when he discusses retail giant Amazon. The Vermont senator, a Democratic Socialist, characterizes Amazon CEO Jeff Bezos as the poster child for “corporate greed,” and his proposed wealth tax would lighten Bezos’s wallet by more than $5 billion per year. Sanders would also break Amazon into smaller companies, to stop what he calls “monopoly” abuse.
Yet Amazon (AMZN) has now joined Sanders in one of his key fights, the push for a $15 minimum wage. Amazon conducted a survey recently, with research firm Ipsos, that found 80% of Americans feel the current minimum wage, $7.25 an hour, is too low. Fifty-six percent of respondents support more than doubling the federal minimum to $15, while just 31% oppose the idea. (In a Yahoo Finance-Harris Poll earlier this year, 83% of respondents agreed that a person working a full-time job at the current minimum wage of $7.25 an hour isn’t making enough money to live.) Sanders has been pushing for a $15 minimum since his first presidential run in 2016, and while some companies pay their workers that much, Amazon may be the only big U.S. company actively campaigning for what is basically liberal legislation.
It’s in Amazon’s interest to support a $15 minimum wage. Amazon already pays that, so a hike in the federal minimum wouldn’t affect Amazon at all. But guess who it would affect: Some of Amazon’s competitors. A few other big companies, such as Target and Costco, start their workers at $15 or more. But most retailers don’t. Starting pay is $11 per hour at Walmart and CVS, and $10 at Dollar Tree, for instance. Some retailers claim their “average” pay is $15 per hour, but minimum starting pay is lower. So if Congress did raise the minimum wage to $15 per hour, labor costs would rise for most retailers, but not for Amazon.
Amazon would probably love to earn some goodwill from Sanders and like-minded allies such as Sen. Elizabeth Warren of Massachusetts and Rep. Alexandria Ocasio-Cortez of New York. All favor a wealth tax and other liberal policies, citing billionaires like Bezos and behemoths such as Amazon as evidence that American capitalism concentrates too much wealth among too few people. The biggest threat to Amazon from the left is probably the call for antitrust action that could split apart the company’s retail, cloud computing, delivery, entertainment and home technology divisions.
If Amazon is trying to woo Sanders, it doesn’t seem to be working. At a March 17 hearing of the Senate Budget Committee, which Sanders chairs, Sanders chided Bezos for declining an invitation to testify on wealth inequality. The committee did hear testimony from an Amazon worker in Bessemer, Ala., where some Amazon workers are trying to unionize—a move Amazon opposes. “If he was with us this morning,” Sanders declared, “I would ask Mr. Bezos … you’re the wealthiest person in the world. Why are you doing everything in your power to stop workers in Bessemer, Alabama, from joining a union?”