Did Donald Trump Just Pick a Fight He Can’t Win—with Jeff Bezos?
Donald Trump may have just entered a battle he cannot win. The presidential candidate has started a feud with Amazon’s Jeff Bezos. The Donald even sent out a tweet goading Amazon. Here it is:
“Trump on Amazon: ‘If I become president, oh do they have problems. They’re going to have such problems.’ • $AMZN 12:13 PM – 26 Feb 2016.”
Trump is upset with Amazon (NASDAQ: AMZN) because its CEO and founder, Bezos, also owns The Washington Post, a legendary American newspaper. Donald hates The Post because it has been running numerous articles and op-ed pieces critical of him. For example, it recently published a column in which historian and pundit Robert Kagan called Trump “a Frankenstein monster” and called on conservatives to vote for Hillary Clinton.
Trump’s war on Amazon is a stupid move because of the vast amount of money the company and Bezos have access to. Bezos’ personal fortune alone is more than 10 times that of Trump. Bezos is worth around $45.2 billion; according to Forbes, he has enough money to finance his own private space program. Trump in contrast is worth around $4 billion, meaning he is not even in Jeff’s league.
Amazon is far richer; it reported $107.01 billion in revenues on December 31, 2015. On the same day the company also reported $7.503 billion in cash flow and $19.81 billion in the bank on the same day.
Trump Declares War on Apple Too
Nor is it just Amazon Trump is taking on; he has also gone to war against Apple (NASDAQ: AAPL).
The Donald is encouraging the American people to boycott Apple until the tech giant complies with an FBI request to decrypt an iPhone used by one of the perpetuators of last year’s San Bernardino terror attack. Trump also attacked Apple’s CEO Tim Cook, who has vowed to fight the FBI’s demand, at a rally in South Carolina on February 19, 2016.
Apple is one of the world’s richest companies; it reported revenues of $234.99 billion and a cash flow of $23.46 billion on December 31, 2015. Apple also had $38.07 billion in the bank on that day.
One has to wonder if Trump, who claims to be a business genius, is capable of doing basic math. He is publicly threatening two gigantic corporations that could easily spend several times his personal fortune to defeat him if they wished. The only winner from such a battle is Hillary Clinton, who can expect a lot of big checks from Bezos, Cook and other Silicon Valley titans.
To make matters worse for Trump, there is no limit on the amount of money corporations can spend on political campaigns in the United States. A 2010 U.S. Supreme Court decision called Citizens United effectively removed all limits on corporate campaign contributions.
Since Tim Cook is willing to go to court to fight the FBI’s attempts to break encryption, it’s fairly safe to assume he’ll be willing to spend money on political efforts to protect it. Both Bezos and Cook have an even stronger reason to stop Trump: The Donald has proposed a policy that would essentially destroy their businesses.
Why Apple and Amazon Will Want to Destroy Trump
On January 7, 2015, Trump told the editorial board of The New York Times that he favors a 45% tariff on Chinese products imported into the U.S. Donald has also proposed a 20% tariff on all other imports.
Apple’s current business model is based on manufacturing American-designed electronics in China and shipping them to countries like the United States. Amazon’s business model is based on offering the lowest prices possible, which means having access to the cheapest manufacturing.
Under Trump’s tariff, both of these businesses would become unprofitable in the United States. The USA is still the biggest market for both countries; around 34% of Apple’s sales are in the United States, and the country is still Amazon’s primary market.
It is obviously a fallacy to assume that aggressive entrepreneurs like Jeff Bezos and Tim Cook will sit back and let a man who is vowing to destroy their businesses become president. They will fight and use the most powerful weapon they have: money.
Billionaires against Trump
Nor is it just Bezos and Cook Trump has to worry about. Two other billionaires, famed right wingers David and Charles Koch, whose collective fortune is believed to be worth more than $100 billion, have already vowed to spend $75 million to stop Donald. The illogic of Trump’s thinking is staggering; he is already outgunned and outspent by his enemies, yet he is picking fights with richer and more powerful foes.
Trump has not even won the Republican presidential nomination yet, although he could very soon, and he is already taking steps to ensure that his Democratic opponent will have unlimited funding. To make matters worse, some wealthy conservatives are also talking about running a third party candidate to take votes away from Trump, Politico reported. That candidate would surely also receive vast amounts of money from Trump’s foes.
It’s 1896 All Over Again
It looks as if Donald Trump has declared war against Silicon Valley and Wall Street. If history is anything to go on, it is a battle Donald cannot win; the last presidential candidate who actively battled the nation’s most powerful business interests was Democrat William Jennings Bryan way back in 1896.
Bryan adopted a series of policies that united the nation’s business interests against him, and he lost badly. The result was also the most expensive presidential campaign in American history. Matthew O’Brien of The Atlantic estimated that almost .05% of America’s gross domestic product (GDP)—a measure of all the spending in the U.S. economy—was spent on the 1896 campaign.
That was more than five times the percentage of the GDP spent on the average presidential campaign. For example, Mitt Romney and Barrack Obama spent around .011% of the GDP on their contest in 2012. Al Gore and George W. Bush only spent around .005% of the GDP on their battle in 2000, which was one of the closest in U.S. history.
By declaring war on billionaires like Jeff Bezos, Trump could be ensuring a repeat of 1896, when Bryan took on billionaires like J.P. Morgan, John D. Rockefeller Sr. and Andrew Carnegie. The only beneficiary of that campaign was Republican William McKinley, who enjoyed unlimited funding and won by a wide margin. We could be in for the most expensive U.S. presidential campaign ever—one that Donald Trump will lose badly.https://geekcrunch.reviews/did-donald-trump-just-pick-a-fight-he-cant-win-with-jeff-bezos/https://i1.wp.com/geekcrunch.reviews/wp-content/uploads/2016/03/Trump-jet-jpg.jpg?fit=640%2C360&ssl=1https://i1.wp.com/geekcrunch.reviews/wp-content/uploads/2016/03/Trump-jet-jpg.jpg?resize=150%2C150&ssl=1InvestmentsBillionaires Vs. Trump,Donald Trump,Jeff Bezos,The Donald,Tim Cook,Trump Declares War on Apple,Trump on Amazon,Trump Tariff,Trump vs Amazon,Trump vs Apple,Trump vs Bezos,Trump vs. Washington PostDonald Trump may have just entered a battle he cannot win. The presidential candidate has started a feud with Amazon’s Jeff Bezos. The Donald even sent out a tweet goading Amazon. Here it is: “Trump on Amazon: ‘If I become president, oh do they have problems. They’re going to have...Daniel JenningsDaniel Jennings[email protected]AuthorGeek Crunch Reviews