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Sharing economy is creating a Dickensian world

The sharing economy benefits its creators, but this may be at the expense of those who do the work or provide the service — as well as the broader economy.

The real reasons for the sharing economy are simple.

The existing industries targeted by these platforms are frequently inefficient. Over time, regulations have accreted, evolving to serve narrow interests rather than to maintain service standards and protect users. Competition has fallen, and development has been impeded.

“Uber and others are transferring the risk of economic uncertainty from employer to employee.”

The arrangements are intended to avoid labor laws that cover minimum wages, working conditions and benefits. Technically, the worker isn’t “employed” but a “contractor” not subject to these regulations, though there is debate in some jurisdictions about the exact legal status and rights of sharing-economy workers.

The sharing economy is part of the trend to contractual and temporary work, which masks the real health of the employment markets. It is also part of a global process of reducing overall labor costs.

The development affects both unskilled and skilled work. Professionals, such as engineers, radiologists and designers from Eastern Europe, Asia, Africa and Latin America, are undercutting peers in advanced economies. It is what financier Jay Gould once envisaged: “hire one half of the working class to kill the other half.”

full article in MarketWatch

PS I sterted ot write that the austerity situation in Greece reminded me of the Dickens world already in 2012.Back to the past after one and a half century of labor rights struggles. And nobody seeks new solutions.

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  1. Giaourti Giaourtaki

    This kinda Mafia “share” is also sheer racism as only people who own smart-phones can use it.
    It’s also the capitalism that creates “need” via ads and hypes

  2. These ‘sharing economy products and services’ such as Über and Airbnb lead to lower standards not only in working conditions but also in quality of the service provided. While I don’t mind competition, I think this should take place locally. The proceeds and profits should stay locally and not end up in the pockets of some ‘smart guys’.
    Sharing economy? What about local barter economies? Already plenty of that happening locally in Greece.

    Globalization is a race to the bottom, really. Globalization as it is now will lead to the creation of a global happy few and global not so happy and poor rest. Examples are these so-called free trade agreements such as CETA and TTIP. CETA is blocked now by the Belgium regional government of Wallon but they are under pressure of the EU.
    CETA and TTIP will lead to the erosion of social, labour and environmental rights in Europe and will only benefits big corporations.