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One example of a high-tech company that submits to a Graham type of analysis is Amazon.com. Though it does business exclusively on the Web, Amazon is essentially a retailer, and it may be evaluated in the same way as Wal-Mart, Sears, and so forth. The question, as always, is, does the business provide an adequate margin of safety at a given market price. For much of Amazon’s short life, the stock was wildly overpriced. But when the dot-com bubble burst, its securities collapsed. Buffett himself bought Amazon’s deeply discounted bonds after the crash, when there was much fearful talk that Amazon was headed for bankruptcy. The bonds subsequently rose to par, and Buffett made a killing.

The victims in all this are regular people: the workers who lose their factory jobs in Juárez and Windsor; the workers who get the factory jobs in Shenzhen and Dhaka, jobs that are by this point so degraded that some employers install nets along the perimeters of roofs to catch employees when they jump, or where safety codes are so lax that workers are killed in the hundreds when buildings collapse. The victims are also the toddlers mouthing lead-laden toys; the Walmart employee expected to work over the Thanksgiving holiday only to be trampled by a stampede of frenzied customers, while still not earning a living wage. And the Chinese villagers whose water is contaminated by one of those coal plants we use as our excuse for inaction, as well as the middle class of Beijing and Shanghai whose kids are forced to play inside because the air is so foul.

There have been periodic attempts to stop the supersizing of the state. In 1944 Friedrich Hayek warned that the state was in danger of crushing the society that gave it life in The Road to Serfdom. This provided an important theme for conservative politicians from then onward. In 1975 California’s current governor, Jerry Brown, in an earlier incarnation, declared an “era of limits.” This worry about “limits” profoundly reshaped thinking about the state for the next decade and a half. In the 1990s people on both the Left and the Right assumed that globalization would trim the state: Bill Clinton professed the age of big government to be over. In fact, Leviathan had merely paused for breath. Government quickly resumed its growth. George W. Bush increased the size of the U.S. government by more than any president since Lyndon Johnson, while globalization only increased people’s desire for a safety net. Even allowing for its recent setbacks, the modern Western state is mightier than any state in history and mightier, by far, than any private company. Walmart may have the world’s most efficient supply chain, but it does not have the power to imprison or tax people—or to listen to their phone calls. The modern state can kill people on the other side of the world at the touch of a button—and watch it in real time.

When Walmart required its suppliers to adopt GFSI standards, many made significant investments and adopted more systematic and transparent food safety practices.27 Again, these are food companies that supply not only Walmart but other retailers as well. Yiannas

Most of Amazon’s sales don’t come from its own brands—they’re from products sold by third parties—but those products are problematic, too. The staff of The Wall Street Journal was named a finalist for the 2020 Pulitzer Prize for investigative reporting after finding that third-party sellers on Amazon had employed people at factories known to be dangerous and had sold unsafe products. Then there are the warehouses where people pack and ship orders. In the United States, among warehouse and storage facilities with at least 1,000 workers, Amazon accounts for 79 percent of employment and 86 percent of injuries, according to the National Employment Law Project—with a rate of injuries almost triple that of Walmart. In India, the country’s commission on human rights asked the government to look into possible labor law violations at an Amazon warehouse near New Delhi, after workers complained about harsh conditions during a severe heat wave, including a lack of water and toilet breaks. Amazon spokespeople have told reporters, meanwhile, that safety for customers and workers is a top priority. They emphasize that Amazon takes action when it learns about the use of forced labor or the sale of unsafe products, and they note that Amazon’s data shows an improving safety record for workers.

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