Thursday, May 5, 2016

Reich on the gig economy

From his FB post:

"In reality, the so-called 'gig' economy is really two quite different economies. Wealthier Americans are using 'gig economy' platforms to rent assets like their homes (Airbnb) or sell products they own or make, according to a new study. By contrast, low-income workers sell their direct labor, such as working as Uber drivers or TaskRabbit movers. In other words, the gig economy is giving those who already have wealth a higher return on that wealth. But it’s not giving those who only have their own labor a higher return on that labor, because it’s enabling corporations (like Uber) to shift business risks onto workers -- and those added risks are reducing economic security and predictability. Bottom line: The gig economy is widening economic inequality."

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