are online companies sucking much of the money from the real world?

@Cutie18f (9551)
Philippines
May 8, 2010 6:01pm CST
We know that there is global recession, that the world is having economic depression, and that there isn't much money to go around, that a lot of companies have laid off employees and a number of companies have closed shop and a number more are in danger of folding up. Why? Is it because money is now going to companies engaged in online business, that money actually grow on trees for these companies and that people in the real world may be poor but there are a lot of little millionaires out there who are getting huge incomes from their websites? Is this possible? That money is now circulating hugely among those engaged in online business and that Google is on top of the list? What do you think?
3 people like this
4 responses
@coffeebreak (17798)
• United States
9 May 10
Online stores don't have the overhead expense brick and morter stores do. That's a huge plus for a profitable business plan. And on the internet...the store is literally open 24/7/365...and B&M stores are not. The store is open to literally every part of the globe so anyone with access to a PC can "shop", and a B&M store is not. So they have a huge advantage with just those 3 things that a B&M store can't offer. My thought is more, why is the US Postal service complaining so much about not having any business when all the online stores have to ship somehow and USPS has great options in that department - delivery to your front door. They raise rates every year cause they say they are loosing business because of online bill pay and first class is down, well, maybe but parcel post style is up. Yes they compete with UPS and FedX but that's always been their competition...just like B&M stores have local competition.
1 person likes this
@Cutie18f (9551)
• Philippines
9 May 10
Because again of e-mail service. Nobody writes and sends letters by snail mail anymore. This used to be a huge business of the postal service. E-mailing has killed one good source of income for postal services and we're talking about billions of people who used to get in touch with friends, relatives, loved ones, etc. through the snail mail and who now use the internet to connect with people around the globe.
@coffeebreak (17798)
• United States
9 May 10
Email and now texting has killed first class, but with online shopping...seems it would have boosted parcel post higher to kind of cover the loss there. THe mail man still has to deliver the packages.
1 person likes this
@Cutie18f (9551)
• Philippines
6 Jun 10
Yes, but people usually go to private parcel post offices like LBC, etc. Only a few use the government postal system because of its slowness in delivering goods.
@farazkh1 (1153)
• Pakistan
9 May 10
Don't blame the companies but blame the system "Capitalism" which helps millionaires to become billionaires and middle class to lower.because banks are playing major role in all this game of hide n seek,when a person earns enough money so he puts it into his account in the bank then banks lends his money to needy ones for high ratio of Interest price then most of the times middle class hard earned money becomes useless when he pays "Interest" goes directly into the pockets of banks then to the depositors account which congest there for long time and recession & inflation becomes active as the result because of the lack of circulation of money which works as blood arteries runs within our body.also i would like to criticize the concept of paper money which is supposed to be the receipt of real wealth but despite growth it gets devaluation..!
@Cutie18f (9551)
• Philippines
9 May 10
You have a point there.
@sweety_81 (2124)
• India
9 May 10
Well, I do not think so. I feel that it is still the "real-world" businesses like Manufacturing, Oil Companies, Metal Companies, Banks, Real Estate which are making more money. And offer the possibility of making more money.
@o0jopak0o (6394)
• Philippines
9 May 10
well for some companies yes, for example the news companies, everybody is switching to the internet and the "paper news" is getting shut down because of it. some of the buy and sell magazines are losing money because of all the business online. i know someone who have gotten $20000 dollars online, dunno how he did it but i know hes from the philippines.