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Just listening to Jim Chanos on his views on gig economy (https://www.youtube.com/watch?v=StybwIP8O8k https://www.youtube.com/watch?v=StybwIP8O8k). One point he

Just listening to Jim Chanos on his views on gig economy (https://www.youtube.com/watch?v=StybwIP8O8k https://www.youtube.com/watch?v=StybwIP8O8k). One point he makes is that companies pay a lot more on top of salaries towards unemployment pool etc that gig economy companies don't. He basically said that this entire gig economy is fraud based on transferring all these burden to tax payers unlike normal companies who have normal employees.

Dwolb 7y ago
FWIW generally exploiting the government is a source of value for a lot of companies. I wouldn’t limit this to just gig economy start-ups (although it’s a fascinating case). Take Wal-mart, whose employees are paid so low and have so few benefits they may require government assistance from housing, food, to healthcare. [1] Additionally season businesses like construction and landscaping business dynamics are essentially built on government subsidies. Every summer they hire hourly workers during peak building season and then in the winter lay them off so they can cut costs during the less busy season. Since the employees get laid off, they collect unemployment. [2] [1] https://www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/ https://www.forbes.com/sites/clareoconnor/2014/04/15/report-... [2] https://www.zenefits.com/workest/firing-vs-layoff-know-the-difference/ https://www.zenefits.com/workest/firing-vs-layoff-know-the-d...
addicted 7y ago
The entire gig economy is finding legal (and in the case of Uber they didn’t even bother with that) ways to evade regulations.
- parthdesai 7y ago
  Or Airbnb. Or Doordash
aianus 7y ago
The contractors that drive for Uber, etc, don't qualify for unemployment benefits so the reduced burden on UI should even out with the reduced contributions, no?
- amorroxic 7y ago
  In the US maybe, gig economy is global though.

Dwolb 7y ago

FWIW generally exploiting the government is a source of value for a lot of companies. I wouldn’t limit this to just gig economy start-ups (although it’s a fascinating case). Take Wal-mart, whose employees are paid so low and have so few benefits they may require government assistance from housing, food, to healthcare. [1] Additionally season businesses like construction and landscaping business dynamics are essentially built on government subsidies. Every summer they hire hourly workers during peak building season and then in the winter lay them off so they can cut costs during the less busy season. Since the employees get laid off, they collect unemployment. [2] [1] https://www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/ https://www.forbes.com/sites/clareoconnor/2014/04/15/report-... [2] https://www.zenefits.com/workest/firing-vs-layoff-know-the-difference/ https://www.zenefits.com/workest/firing-vs-layoff-know-the-d...

addicted 7y ago

The entire gig economy is finding legal (and in the case of Uber they didn’t even bother with that) ways to evade regulations.

parthdesai 7y ago
Or Airbnb. Or Doordash

aianus 7y ago

The contractors that drive for Uber, etc, don't qualify for unemployment benefits so the reduced burden on UI should even out with the reduced contributions, no?

amorroxic 7y ago
In the US maybe, gig economy is global though.