Yesterday Hilary Clinton mentioned the “gig economy” in a speech. She said
Meanwhile, many Americans are making extra money renting out a small room, designing websites, selling products they design themselves at home, or even driving their own car. This on-demand, or so-called gig economy is creating exciting economies and unleashing innovation.
But it is also raising hard questions about work-place protections and what a good job will look like in the future.
This is of course a topic I have been speaking and writing about a lot. Like Fred, I think that this is a discussion we need to have. I think the framing though of the question has to be quite different. We need to move past traditional concepts of work and jobs towards an era of economic freedom enabled by a universal basic income and something akin to what I have called the right to be represented by a bot.
As long as we frame the debate in terms of “work-place protections” and a “good job” we are still caught in the industrial system. The hallmark of the industrial system is what I call the job loop: most people sell their time and receive a wage in return — they then use that wage to buy products and services, which in turn are made by people selling their time. This job loop has been extraordinarily successful. In combination with relatively free markets it has given us incredible progress. But it is now breaking down due to automation and globalization.
The rise of the gig economy is a part of this break down of the job loop. Instead of trying to fix it and to imprint traditional work and labor thinking on these new platforms I propose an entirely different approach: truly and deeply empower individuals to participate on their own terms. Just imagine for a moment a world in which everyone can take care of basic needs such as housing, clothing, food, healthcare and education.
In such a world any and all participation in “gigs” will be entirely voluntary. People will have real walk away options from gigs that don’t pay enough. That also includes “jobs” at McDonalds, or Walmart or the local nail salon. In such a world there is no need to distinguish between a W2 employee and a 1099 contractor.
Such a world is now possible thanks to the productivity gains we have made over many years and the ones that are just now emerging. If you want some good numbers on the economic feasibility of a Universal Basic Income I propose reading this piece by Scott Santens. You can also listen to and read about a discussion from a few weeks back at Civic Hall which includes additional thoughts on funding.
Empowering individuals economically through a Universal Basic Income is just the start though. We also need to give individuals informational freedom. This means that if I am a driver for Uber I should have the right to access Uber through a third party app that strictly represents me. In the open web era that was the browser (not by accident referred to as a “user agent” in the http protocol). We need the equivalent for apps.
The combination of economic and informational freedom for individuals will be a far better check on the power of platforms such as Uber, Etsy, Airbnb, etc. then any attempt to have government regulate directly what these companies can and cannot do.
So this is a perfectly good time to suggest you watch my TEDxNewYork talk on basic income and the right to be represented by a bot.
If you prefer to read, there is a transcript instead. I am also happy to report that my book (which will really be a long essay) on this topic is making good progress.