Posted: Oct 21, 2018 9:55 am
by Scot Dutchy
Thanks to the gig economy:

The 'gig economy' has broken a fundamental link in capitalism that was good for workers


The last time unemployment was as low as its current rate, in 1975, earnings increased by 30% a year. Today, average wage growth is only 1.9%. What has gone wrong?

The big difference in the post-2008 period is the increase in poorly paid, part-time, self-employed, low-quality jobs.

British workers are so cheap it is tempting to hire them rather than invest money into something more productive for the long run, such as new plant, equipment or technology.

Pay no longer moves upward as unemployment goes down because companies like Uber, Just Eat, and Deliveroo can switch off their demand for labour on a minute-by-minute basis.

The gig economy has thus broken a fundamental link in capitalism that was good for workers.