
This year’s presidential debates have stirred up a lot of controversy regarding the sharing economy. While some candidates are in full support of this innovative economy, others raise questions and concerns around job security and benefits. In a recent article by Shane Ferro (@shaneferro) on Business Insider, he discussed a possible solution to solving these issues.
Hillary Rodham Clinton, Democratic presidential candidate, was the first candidate to show opposition of the ”gig” or sharing economy. At a conference in New York on July 13, 2015 Clinton said:
"Many Americans are making extra money renting out a spare room, designing a website...even driving their own car. This on demand or so called 'gig' economy is creating exciting opportunities and unleashing innovation, but it's also raising hard questions about workplace protections and what a good job will look like in the future."
So, what can we do to fix these issues? Albert Wenger, partner at USV, a New York-based venture capital firm that manages assets, proposed the idea of Universal Basic Income. This occurs when the government provides enough money to cover everyone’s basic needs such as food, shelter, and healthcare. This leads to the idea that once people have their basic needs covered, they’ll be able to use their free time to do what they truly want.
Wegner also goes deeper, to argue that individuals and freelancers should have informational freedom in the sharing economy. For example, an Uber driver should have access to Uber through a third party app which represents the individual. Rather than union protection, laborers would have an app to represent them.
In my opinion, I believe the idea of Universal Basic Income is a great one, the method of paying for this could derive from a subtle increase in taxes, or another form. Of course, there are far more kinks to work out for this to be considered, but if basic needs were covered, government officials wouldn’t feel the need to regulate the sharing economy so forcefully. Today, more than 1 in 3 American workers are freelancers. It seems the sharing economy is here to stay, whether or not government officials are in accordance. People will always find a way to earn extra income, especially since the 2008 economic collapse. The question is, how do we make the sharing economy work for everyone?