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by mlevental 2970 days ago
the way i think about this is mcdonald's employees getting their oil changes from jiffy lube across the street and the jiffy lube employees eating lunch at the mcdonald's - there's no external investment in the local economy (yes this basically a microcosm for all economics).
1 comments

That can't be true when so many of these small businesses have such massive margins. They're not spending the earnings on other small online businesses.
these people don't pay themselves as FTE so of course their margins are good.
That's irrelevant to above point. That they could pay themselves a salary out of earnings means there is more money going in that just what is cycling around between these sites.
no you're missing my point: they don't pay themselves at all so their margins are inflated.