Whereas different corporations in the reduction of on spending because the coronavirus pandemic took maintain final yr, ecommerce big Amazon boosted its home capital investments by 75% to just about $34 billion—and helped set the stage for a sturdy financial restoration, in line with a new report from the Progressive Coverage Institute.
Capital funding by Amazon and its friends within the ecommerce, broadband and tech industries helps spur job creation, boosts manufacturing and distribution capability and combats inflation by shoring up provide, the report’s authors argue.
In Amazon’s case, the additional funding on property and gear final yr was pushed by the necessity to meet an infinite surge of demand through the pandemic, the report notes.
These investments put the agency in PPI’s high slot on its listing of “Funding Heroes.”
Verizon was second on PPI’s listing with $16.1 billion in home capital funding final yr, AT&T was third on the listing with $15.6 billion invested, and Alphabet and Intel rounded out the highest 5 with $14 billion and $12.5 billion invested, respectively.
500,000. That’s what number of staff Amazon added in 2020, in line with the report.
“The willingness of those corporations to maintain spending primarily made it doable for giant chunks of the economic system to maneuver ahead regardless of the pandemic,” the report states.
Regardless of its main investments within the U.S. economic system final yr, Amazon’s enterprise practices have additionally been the goal of criticism. The agency was just lately sued by the legal professional basic of the District of Columbia over allegations that it engaged in anticompetitive practices that “have raised costs for shoppers and stifled innovation and selection throughout your complete on-line retail market.” Rep. David Cicilline (D-R.I.) said Amazon’s latest buy of movie studio MGM is an indication that the corporate is “laser-focused on increasing and entrenching their monopoly energy.” And that’s to not point out criticism over the best way the corporate dealt with security protocols for staff and drivers through the pandemic.
Investment Heroes 2021: Capital Spending During the Pandemic (Progressive Coverage Institute)