Wages and the Gig Economy

California passed a law that requires companies in the “gig” economy to treat workers like employees. Of course, the law is just a starting point. Companies like Uber are trying to get some watered down version when it comes to implementation.

Companies are complaining the law will ruin their businesses. My take on it is pretty simple. If your business model requires that your workers earn less than a living wage, you don’t deserve to be in business. Seems like a scam to me. Uber has never made money, yet it’s co-founder just bought an amazing mansion for 72.5 million dollars.

I am dismayed at the number of workers who don’t think they deserve a living wage. It’s not normal to have to work three low wage jobs to make a living. Productivity is way up and CEOs are doing quite well, thank you very much. Of course, at the end of slavery, some slaves were worried that they wouldn’t have their masters to take care of them anymore. The owner class has always done a pretty good job brainwashing people.

Even Henry Ford realized that the workers building his cars had to earn enough money to buy the cars they made. When the poor and working class earn more money, they spend it. That spending stimulates the economy and everyone benefits. The wealthy don’t stimulate the economy as much. They can only eat so many meals and wear so many suits.

At some point the economy is going to have to be reorganized. Even China, a land of low wages, is going into automation to reduce costs even more. If your job pits you against machines, you will lose in the long run.

I’m not sure what the solutions are, but building companies on the back of starvation wage workers isn’t going to work long term.

-Sixbears