Ebook Download Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
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Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
Ebook Download Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
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"What's going to happen to my job?"That's what an increasing number of anxious Americans are asking themselves. The US workforce, which has been one of the most productive and wealthiest in the world, is undergoing an alarming transformation. Increasing numbers of workers find themselves on shaky ground, turned into freelancers, temps and contractors. Even many full-time and professional jobs are experiencing this precarious shift. Within a decade, a near-majority of the 145 million employed Americans will be impacted. Add to that the steamroller of automation, robots and artificial intelligence already replacing millions of workers and projected to "obsolesce" millions more, and the jobs picture starts looking grim. Now a weird yet historic mash-up of Silicon Valley technology and Wall Street greed is thrusting upon us the latest economic fraud: the so-called "sharing economy," with companies like Uber, Airbnb and TaskRabbit allegedly "liberating workers" to become "independent" and "their own CEOs," hiring themselves out for ever-smaller jobs and wages while the companies profit. But this "share the crumbs" economy is just the tip of a looming iceberg that the middle class is drifting toward. Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers,by veteran journalist Steven Hill, is an exposé that challenges conventional thinking, and the hype celebrating this new economy, by showing why the vision of the "techno sapien" leaders and their Ayn Rand libertarianism is a dead end. In Raw Deal, Steven Hill proposes pragmatic policy solutions to transform the US economy and its safety net and social contract, launching a new kind of deal to restore power back into the hands of American workers.
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Product details
Paperback: 336 pages
Publisher: St. Martin's Griffin; Reprint edition (June 27, 2017)
Language: English
ISBN-10: 9781250135087
ISBN-13: 978-1250135087
ASIN: 1250135087
Product Dimensions:
5.8 x 0.9 x 9.1 inches
Shipping Weight: 12 ounces (View shipping rates and policies)
Average Customer Review:
4.2 out of 5 stars
56 customer reviews
Amazon Best Sellers Rank:
#615,050 in Books (See Top 100 in Books)
Our model we have built our world on seems to be broken. Book offers a good rundown how our world as we know it may be headed off a cliff. No pensions, fewer jobs with benefits. Gigs, freelancing and winging it are the future. Hill outlines the issue as a growing army of "freelancers, temps, contractors, part-timers, day laborers, micro-entrepreneurs, gig-preneurs, solo-preneurs, contingent labor, perma-lancers and perma-temps." Even if the job offers benefits, the high cost deductible for med care is prohibitive. Hill warns that many of our future jobs will be taken by robots. The young workforce that is coming up are overloaded with college loans that they can hardly pay off. I don't pretend to have a crystal ball, but with an ever growing population, higher living expenses and less jobs...something has to give.The Uber / freelance economy is either good or bad depending on how you look at it. One side says it offers money to a wide group of people willing to share. It offers jobs to people that a company could not afford to offer unless it could hire independent contractors. The other side of the coin says it takes away traditional jobs and replaces them with part time gigs that offer no security or benefits while cutting into established businesses profits. Businesses hiring independent contractors is not new. With or without the Uber economy the trend has been to offer less and less full time jobs so the employer does not have to offer benefits.I don't have any perfect answers to the problems that face us in the future, it is just how things have worked out. The book does not give magic bullet answers to the problem either. It does a great job in outlining the issues, but some problems society make are not easily fixable. Really, it Is the American way...as a capitalistic society money is our god. If we were bees or ants we could be communists. Can you imagine bees or ants as greedy capitalists? They would be extinct. Self-centered, greedy humans cannot be successful communists as the result is worse than capitalism. Someone mentioned a universal allowance to give to people. Well, that is a start. The other option is free tents...as the future outlook is dim. I highly recommend you read this book and take your possible future to heart for it effects us all.
“Welcome to the Freelance Society,†writes Steven Hill. His simple premise is that the American job market is rapidly changing – mostly to the detriment of the average worker. That worker has less stability, lower compensation and a skimpier safety net than his counterparts a generation ago. Consequently, we need to update the social contract – codified by the New Deal for a much different economy – to establish for freelancers and independent contractors the same legal protections that full-time employees enjoy. In an interesting, though somewhat repetitious, book, Hill details what is happening.• More than one in three workers is now freelancing, and the trend is picking up momentum. Temp work is one of the fastest growing sectors in the American economy.• Business has a preference to use “independent contractors†who file 1099-MISC forms with the IRS. That’s because employers can lower their costs by 30 percent, since they aren’t responsible for a 1099 worker’s health benefits, retirement, pension, workers compensation, overtime, disability, paid sick leave or vacations.• The worker protections that began with the New Deal are based upon the assumption that the employee works for the company that makes the product. That assumption is less and less valid.What does it mean for workers in the freelance society? It’s back to the future in the 1099 economy, where workers are responsible for paying for their own health insurance, arranging for their own IRAs –though without employer matching – and paying the employer’s half of the Social Security and Medicare payroll tax. They go without “a steady paycheck, secure employment, and a comprehensive safety net.†In short, working conditions are more precarious for freelancers.One option for people seeking work is to find short-term gigs via websites and mobile apps. These might be called job brokerages for day laborers where freelancers bid against each other for work in a type of reverse auction designed to be a race to the bottom.The largest company in the digital temp industry is Upwork, which has 10 million contractors around the world. For services that can be performed regardless of the worker’s location, the Internet competition is with freelancers from India, the Philippines and other Third World countries who accept Third World wages.Hill examines two of the most prominent companies in the so-called Uber economy -- Airbnb and Uber. He calls Airbnb “a catalyst for massive lawbreaking, a tax rogue, and an impetus for the eviction of longtime tenants.â€Neighborhoods are most likely to be disrupted in areas attractive to tourists, such as some in San Francisco, New York and LA. When landlords realize they can make more money doing short-term rentals via the Internet, they evict their current tenants, which results in fewer places available to rent for permanent residents. Thus formerly stable residential neighborhoods undergo “hotelization,†despite zoning for residential use, not for tourist hotels.While hotels are subject to municipal occupancy taxes, Airbnb claims tax exemption in almost all of the places it operates around the world. The exception is San Francisco, where the company agreed in 2015 to pay its back taxes and to collect taxes going forward, due to the threat of a hostile initiative.While the company claims its hosts are regular people who live in their homes and occasionally rent out spare rooms, the reality, at least in hot tourist areas, is quite different. An investigation by the New York attorney general found that the Airbnb market is dominated by professional landlords and multi-property agents. One operator in New York City booked $6.8 million in revenue on his 272 units over four years. Similar patterns have been reported in LA, San Diego, and Chicago.Uber has been called “an app-based taxi service for non-professional, unregulated and underinsured drivers.†Uber drivers are 1099 contractors. The company claims it does criminal background checks on their drivers, but does not take fingerprints, and name-based checks are far less reliable.The company says it has no liability because the driver is a private contractor. Uber does not require its contractors to have commercial insurance in order to protect their customers, since personal auto insurance does not cover commercial use. By contrast, taxi drivers are covered by their company’s commercial insurance.While taxi companies and limo services are subject to livery taxes, Uber claims exemption because it neither owns vehicles nor employs drivers. Uber makes the same argument when it comes to regulations.Uber claims its driver-contractors are highly paid, but four out of five are part-time and most are temporary. If they really could earn six-figure incomes, one would think there would be more full-timers. Uber takes a cut of every fare, originally 5 percent, but now 20-25 percent or more. Uber also makes unilateral price cuts, which reduce driver compensation. Meanwhile, drivers are responsible for their own costs, such as gas, insurance, maintenance, cleaning, tickets and so on, as well as the employer’s payroll taxes.So what are the solutions? One is the political decision to extend the same job protections that W-2 employees have to temps, freelancers and contractors the way the European Union has done. If employers were required to pay the same benefits to 1099 contractors as to W-2 workers, that would remove the economic incentive to use 1099 contractors to save on benefits. What’s indispensable is to make worker protection and rights portable and centered on the individual, not on the job, since freelancers can have several employers in one day.The way it would work is to require employers to contribute to an individual security account a few dollars per hour for each freelancer, temp or 1099 contractor they use. From these accounts would come the employer’s share of Social Security, Medicare, and worker’s comp. The principle should be, “if you contract with them, the employer pays.â€A second proposal is to join the 160 nations that already provide for paid sick days. Another idea is to offer tax breaks to corporations that permit workers to elect from one-third to one-half of the board of directors. The German economy does not seem to be harmed by the requirement that half of directors be selected by workers, though CEOs would earn less than they do now. Raw Deal makes a persuasive case that Ayn Rand fundamentalism does not benefit the workforce. ###
I have been researching Uber and AirBNB, initially because I consult and own businesses in both Transportation and Hospitality so I bought this book to research the impact on the "sharing economy" on these two industries and my businesses because these "Disrupters" are lowering retail prices in both industries and NOT following regulatory rules and tax laws the small businesses in these industries must pay. Raw Deal opened my eyes to the far reaching impact of the Sharing Economy and the unintended consequences of this growing trend far beyond what I ever imagined. I highly recommend this book to any small business effected by technology disruptors or competitors who seek to undercut prices by exploiting workers. This book is an eye opener and should be on the desks of every regulator, politician and department head in every state in the country and in DC. Steven Hill nails it for those of us in small business effected by this trend and more than that unmasks all the massive unintended consequences of this economic shift.
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