Drudge Retort: The Other Side of the News
Monday, August 18, 2014

The so-called sharing economy is often touted as an unequivocal good. Advocates describe it as a way for ordinary consumers to earn income from their cars, apartments and other personal assets, while also fostering a new class of Internet companies to compete with old, static industries. Yet if flourishing new businesses such as Uber and Airbnb are making it big by cutting their overhead and sidestepping regulations, and if customers are saving money, the benefits for workers in the sharing economy are decidedly more mixed. CBS MoneyWatch lists five ways in which the all this sharing and gigging can disadvantage workers.

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The first way: Income. "Companies may mention top-end pay or a gross amount for all workers. In fact, the pay for gigs appears not only far more modest, but often nowhere near a living wage," MoneyWatch reports. "Meanwhile, even when the cash seems good, much of the cost of running the business falls on workers. Ride-sharing drivers must pay for wear-and-tear on their vehicles, gas and commercial insurance."

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Welcome to a new reality, falling living standards, brought to you by policies conceived and implemented by the Federal Reserve, Treasury and elected officials for the sake of Corporate profits.

#1 | Posted by nutcase at 2014-08-19 06:38 AM | Reply | Flag:

This all boils down to pay someone extra and you take less. That's all it is. Pay workers more than their labor is worth in the market. And you who own the business, don't take as much. Do it on your good heart.

This model will never sustain.

#2 | Posted by boaz at 2014-08-19 08:31 AM | Reply | Flag:

I'm sure those taking gigs would rather have steady employment, if any such employment existed.

#3 | Posted by Huguenot at 2014-08-19 10:35 AM | Reply | Flag:

Sounds like 1099 work regurgitated and organized through the interwebs.

Businesses love hiring 1099 workers. You pay them 20% more than hourly workers and shift the burden to tax withholding, FICA, health insurance and other employee costs onto them, which are typically more than the 20% extra you pay them.

I remember Microsquat did that with many of their workers and lost big time in court when the workers found out they were being excluded from the Microsquat profit sharing plan.

The game is the same, it is just the equipment has changed.

#4 | Posted by 726 at 2014-08-19 02:13 PM | Reply | Flag:

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