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The Gig Economy Is the Future and It Is Coming Fast

December 10, 2016 by Llewellyn King 1 Comment

You might not know this, but if it has not happened yet, you may be about to become a company of one.

Welcome to the gig (as in a musician doing a gig) economy. It is coming and faster than anyone expected. In fact, it is coming so fast that in 2050 more people will be in gig employment than conventional employment, according to Wired magazine.

I want to stand on my chair and utter three cheers for it. Except I can only muster two cheers.

In the gig economy workers become consultants, contractors, freelancers.

From the worker point of view, it is an end to conventional bosses, burdensome hours and fitting into a corporate culture.

For the firm outsourcing what used to be salary work, it is a freedom from the costs of employing, like healthcare and retirement plans, safety rules and regulations.

The poster example of gig employment is Uber. Let me say, parenthetically, that I love Uber in almost all ways: the convenience, the ride tracking, the clean cars and polite drivers.

Also, I love the idea that the personal automobile, a large capital investment for most, can be put to work.

It works almost as well for the owner of other capital-intense possessions, notably apartments and boats. Get a little back on your sunk investment. What could be better?

Not much, but there are problems. Primarily, the architecture of our society is not ready for the shift from corporate to private, from big to very small.

At the heart of this stage of the gig economy is the internet and its ability to bring the willing buyer, renter, seller and worker together.

Companies that have understood these uses of the internet have gone for the capital-intensive goods: boats, cars and homes. But at the low end, freelance workers are hooking up with customers who are seeking pure service plays like car detailing, dog walking, home computer assistance, house cleaning and repairs of all kinds.

Most of this should only worry the tax man. If you work for one of the ride-sharing services, like Uber or Lyft, the taxman knows all about you.

But if you are in a less-dragooned environment, tax collection halts. Do you withhold taxes from your house cleaner, for example?

One can understand why ride-sharing is beating the daylights out of the taxi business, and so what? Well, the problem is to use ride-sharing you need a credit card and a cell phone. The very poor, or those in temporary difficulties, do not have these. They need taxis.

The law has not caught up with new realities.

The promise of the gig economy is every worker is a contractor protected by a contract. The reality, as with the ride-sharing services, is that the internet company becomes an employer in all but name. The worker has given up the security of a job for the insecurity of entering into a contract he did not write and cannot amend. In weak economic times, the worker is vulnerable to a global system of serfdom.

It is easy to single out Uber, which has greatly improved the quality of life for passengers, and the usage of under-used assets. But what of the drivers? There are laws that govern the old workplace with wage-and-hour standards, workers’ compensation and conditions monitored by the Occupational Health and Safety Administration.

If you are semi-self-employed, say as a delivery contractor, the internet-facilitating company holds the whip hand when it comes to paying the drivers. Nowhere have I read that drivers really can make a living driving. A little extra, yes. The problem is the independent contractors are not so independent if they just have one customer — and that is not the passenger, but rather some ubiquitous computer network.

The gig economy knows and cares nothing about health care, sick leave, Social Security payments, tax collections, vacations and working conditions. It is free, it is exhilarating and it is the future. But it may be exploitative as well.

Filed Under: King's Commentaries Tagged With: contract work, employment, freelance, llewellyn king, Lyft, OSHA, self employment, Uber, W-2 workers

There Will Be a Short Delay with the Candidate’s Announcement

April 21, 2015 by Llewellyn King Leave a Comment

Some of you were expecting me to announce my candidacy for president of the United States, along with the others who got all the headlines.

There have been a few problems. There are solutions, too. (How is that for a campaign zinger?)

There is the problem of my birth. I was, er, born in a foreign country with, er, un-American parents. I have to check with the Ted Cruz camp on that problem.

There is a money problem. At the moment, I have $138 in my current account. But that amount will swell, when my Social Security check comes in next week.

In the long term, I have a crafty, two-pronged approach to raise the billion or so dollars I will need for my campaign. My wife will set up a foundation, called the “Foreign Governments’ Friends Committee,” which will raise money like a Fourth of July flag.

Unlike one of my opponents, I will not beat about the bush on foreign campaign donations. I will take them all, see that they are properly laundered, and promise the donors all sorts of favorable treatment. I can renege later. Not a word, please.

Then there is crowd-sourcing. When my message gets out, I expect a Niagara Falls of money. I will go after the disaffected, unhappy people who hate all candidates. The nutters of the left and the right have lots of dough.

Here is a peek at other aspects of my program:

Bring back manufacturing (back story, by lowering the minimum wage, so that our labor is cheap).

Get tough with Iran. Any Iranian waiter found passing himself off as an Italian at a New York restaurant will get summary deportation.

Give China an ultimatum: Either you double the value of your currency, or millions of Americans will be forbidden to shop at Walmart.

In the Middle East, trust the dictators. We will support the most awful monsters in the time-honored way. If we could get Saddam Hussein out of the grave, I would go for it. Likewise Muammar al-Qaddafi. Call it “the strongman policy”: no messing about with uprisings.

I will be a tough guy supporting other tough guys. I will say to Vladimir Putin, when we are shirtless, “I don’t give a hoot about Ukraine. Take it. But I want you to invade China — just a little way. And crush ISIS. You know, the way you did Czechoslovakia and Hungary in the glory days.

That should take care of the world.

At home I will have the most flexible of policies, based on the latest polling. If you are in favor of abortion, tell Gallup and you will get them.

Want the Ten Commandments on the wall of the Capitol? No problem if you can produce a convincing poll, preferably written on stone tablets.

What is democracy but a craven pursuit of votes through polling? Go democratic all the way, I say.

Wait until you hear some of my appointments. How do you fancy Donald Trump for secretary of state? Here is someone who will appreciate my tough-guys-are-always-right policy.

Before I announce my candidacy, I will perfect my Israel strategy. I am leaning toward giving honorary citizenship to Benjamin Netanyahu, so that I can make him my national security adviser. Why should Congress claim Bibi as their own? I will have goodies to offer him that will beat whatever John Boehner and Mitch McConnell can do. For starters, how about a hard pass to the White House and a regular chance to be on the Sunday talk shows?

Darrell Issa is my choice for ambassador to Libya, in recognition of his Benghazi studies.

Finally, my coup de grace: immigration. Simple, no one will want to live here when I am in the White House. — For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: 2016 presidential election, Benjamin Netanyahu, Darrell Issa, Donald Trump, foreign donors, Gallup poll, John Boehner, King Commentary, llewellyn king, Mitch McConnell, Sunday talk shows, Ted Cruz, U.S. presidential campaign

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