Friday, January 15, 2016

Magical “shared” economy


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Paul Buccheit writes in the Nation of Change that three industries have actively contributed to the collapse of well-paying middle-class jobs in America. Corporations that kill middle-class jobs, contribute to inequality.

The pharmaceutical industry is notable for tax avoidance.

The high-tech industry eliminates jobs and outsources jobs:


Just 25 years ago GM, Ford, and Chrysler generated a combined $36 billion in revenue while employing over a million workers. Today Apple, Facebook, and Google generate over a trillion dollars in revenue with just 137,000 workers. Apple makes over a half-million dollars per employee; Facebook and Google are both over $300,000….

The insidious rise of “philanthrocapitalism” has allowed tech titans like Bill Gates and Mark Zuckerberg to reduce their taxes — thus depriving society of infrastructure and education funds — while they assume the right to make high-level decisions about GMO agriculture, charter schools, and Internet usage. Much of this lost tax money actually goes to partner corporations that do the bidding of their billionaire benefactors.

The new “sharing economy,” such as firms like Uber and AirBNB, has also killed jobs.

Free-market enthusiasts look to the sharing economy (or “gig” economy, or “day labor” economy) for salvation, with companies like Uber and Airbnb and TaskRabbit enabling the dreams of Millennials, who, according to Time’s Rana Foroohar, “want to be their own boss…any Uber driver will tell you that having totally flexible hours is the best part of the gig.” But at the same time, Uber workers have no pensions, no health care, and no worker rights protection. Thus, says Foroohar, “the company also captures all the fear of the broken social compact in America.”

Uber, with a market valuation of $50 billion, has 4,000 employees along with 160,000 drivers who are not considered by the company to be employees. This is not a horizontal sharing process, but rather a hierarchical control structure, with tens of thousands of American workers denied the traditional employee support system.