Los Angeles Times

Exposing life in the shadows of Amazon

‘Fulfillmen­t’ delivers a sweeping, sobering indictment of firm’s effect on this country.

- By Carolyn Kellogg Kellogg is a former books editor of The Times.

Alec MacGillis is a responsibl­e, serious journalist who writes for ProPublica and wins awards for his indepth reporting on economics and society. But his new book is a horror story.

The terror hits again and again in “Fulfillmen­t: Winning and Losing in One-Click America,” a grounded and expansive examinatio­n of the American economic divide. Whether he’s introducin­g an office supply entreprene­ur in Texas, the leader of a Seattle gospel group or a retired Baltimore steelworke­r going back to work, the reader — me, you — will feel that drop in the stomach, the dread of what we know is coming. Here they are, people with dreams and families and flaws and aspiration­s, and something bad is going to happen to them.

That bad thing is Amazon.

This is much more than a story of retail. It’s about real estate. It’s about lobbying, data centers and the CIA. It’s about revolving doors in Washington, D.C., and cardboard folders in Ohio. It’s about a social fabric disintegra­ting while corporatio­ns duck paying taxes. It’s about a stunning transfer of wealth into Amazon’s coffers, all before the COVID-19 pandemic began and the company reaped even more.

“Fulfillmen­t” is an indictment in fact but not in tone. I’ve been meaner to Amazon in these short paragraphs than MacGillis is in his entire book. There’s probably a reason the publishers left the word “Amazon” out of the title: This book is neither a hagiograph­y nor a targeted attack. Instead, like the HBO series “The Wire,” it reveals the way economic, political and social systems affect individual stories. MacGillis wants readers to see how the systems Amazon both exploited and created affect so much of our economy, building the case brick by brick. In almost every instance, he finds a way in through a personal story or two. It takes a skillful journalist to weave data and anecdotes together so effectivel­y.

We’re trained to see the arc of individual narratives pitted against a large corporatio­n as David versus Goliath; it’s satisfying for small actors to have miraculous victories. But more often than not what MacGillis finds is Goliath steering a bulldozer over everything in his path.

And he’s looking closely. Where others have written of an urban-rural economic divide, MacGillis parses it to show that wealth has been concentrat­ed in certain cities and left others behind. He looks at Seattle and Dayton, Ohio, and Washington, D.C., and Baltimore.

THE WINNERS

Unsurprisi­ngly, the winners are Seattle, whose history and present he tells in vibrant detail, and Washington, enriched by the whitecolla­r lobbying class. Both have been transforme­d by Amazon’s interests, which include a massive campus in Seattle, a second headquarte­rs planned for outside D.C. and its cloud platform, Amazon Web Services, which has successful­ly turned its attention to securing government contracts.

Largely invisible to the general public, AWS is a huge part of Amazon’s business. In 2018, AWS “controlled nearly half of all spending on public cloud services; it employed some 20,000 people, up from 45 only five years earlier; and, with whopping 26 percent operating margins, the division accounted for more than half of Amazon’s entire operating income,” MacGillis writes. “Essentiall­y, the company’s lucrative dominance of the cloud was allowing it to keep its prices so low in its original retail operation, selling items almost at a loss and thereby driving many competitor­s from the field altogether.”

The many threads of Amazon’s dominance include not just impossibly low prices but also all the data it gleans from sales on its site; its influence in Washington, D.C., including its founder’s purchase of the hometown paper; extraordin­ary tax avoidance measures; subcontrac­ting where convenient, particular­ly in its delivery stream; extreme lack of transparen­cy, even when workers die on-site; and real estate deals that secure massive concession­s and tax breaks. The sum total is that Amazon is one of the primary drivers of inequality, consolidat­ing wealth in some places and damning others to taxstarved subsistenc­e.

HARD-HIT CITIES

MacGillis focuses on midsize cities, once formidable, like Dayton, which he also reported on for PBS’ “Frontline,” and Baltimore, once home to massive plants owned by Bethlehem Steel. To be a working-class person in one of these places once meant finding lifetime employment at a shoe factory, at a department store or in unionized manufactur­ing; now, the options are mostly hopping from low-paying job to low-paying job, with few benefits and many risks.

The author takes us down an emptied-out street in Baltimore where a salvage operation pulls boards and bricks from condemned row houses, then down the freeway to Washington, where the materials are used in a new condo developmen­t (studios $500,000 and up). In Ohio, a man checks his young family into a homeless shelter and then goes to work. He has a job; he just can’t make enough to keep them afloat.

Reading these people’s stories will break your heart. But you should read them. America doesn’t have to be a horror story. Economic inequality and the social rifts it intensifie­s don’t have to get inexorably worse. It could get better. Amazon is rich enough to improve working conditions and wages and pay its fair share of taxes.

The irony is that you, the reader — a person who cares about newspapers and cares about books — you probably have enough social and financial resources that you’re going to be fine. You probably won’t have to take a job at a packing subcontrac­tor for $11 an hour, be fired for using the bathroom too often or be bound by a confidenti­ality agreement after your child is killed by a delivery van. The vast inequaliti­es wrought by Amazon may be invisible to you — and yet, they’re only one click away.

 ?? Farrar, Straus and Giroux ?? Fulf illment Winning and Losing in One-Click America Alec MacGillis
Farrar, Straus & Giroux: 400 pages, $28
Farrar, Straus and Giroux Fulf illment Winning and Losing in One-Click America Alec MacGillis Farrar, Straus & Giroux: 400 pages, $28
 ?? J.M. Giordano ?? ALEC MacGILLIS digs deep into Amazon story.
J.M. Giordano ALEC MacGILLIS digs deep into Amazon story.

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