Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
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Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
Free PDF Ebook Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill
"What's going to happen to my job?"
That's what an increasing number of anxious Americans are asking themselves.
The US workforce, which has been one of the most productive and wealthiest in the world, is undergoing an alarming transformation. Increasing numbers of workers find themselves on shaky ground, turned into freelancers, temps and contractors. Even many full-time and professional jobs are experiencing this precarious shift. Within a decade, a near-majority of the 145 million employed Americans will be impacted. Add to that the steamroller of automation, robots and artificial intelligence already replacing millions of workers and projected to "obsolesce" millions more, and the jobs picture starts looking grim.
Now a weird yet historic mash-up of Silicon Valley technology and Wall Street greed is thrusting upon us the latest economic fraud: the so-called "sharing economy," with companies like Uber, Airbnb and TaskRabbit allegedly "liberating workers" to become "independent" and "their own CEOs," hiring themselves out for ever-smaller jobs and wages while the companies profit.
But this "share the crumbs" economy is just the tip of a looming iceberg that the middle class is drifting toward. Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers,by veteran journalist Steven Hill, is an exposé that challenges conventional thinking, and the hype celebrating this new economy, by showing why the vision of the "techno sapien" leaders and their Ayn Rand libertarianism is a dead end.
In Raw Deal, Steven Hill proposes pragmatic policy solutions to transform the US economy and its safety net and social contract, launching a new kind of deal to restore power back into the hands of American workers.
Raw Deal: How the "Uber Economy" and Runaway Capitalism Are Screwing American Workers, by Steven Hill- Amazon Sales Rank: #75057 in Books
- Published on: 2015-10-20
- Released on: 2015-10-20
- Original language: English
- Number of items: 1
- Dimensions: 9.47" h x 1.16" w x 6.37" l, 1.00 pounds
- Binding: Hardcover
- 336 pages
Review
"Hill hits Silicon Valley darlings like Uber and Airbnb alongside the former online black market Silk Road, right-to-work laws, and factory robots all under the umbrella of “naked capitalism.” He explains how the rise of the “1099 workforce” is not limited to Silicon Valley; more and more traditional jobs in fields like manufacturing are turning to contractors to perform the same tasks full-time employees used to do. In addition to costing workers in benefits and safety nets, misclassifying workers as contractors costs federal and state governments billions of dollars annually in lost tax revenue." ―Washington Monthly
"For anyone driven crazy by the faux warm and fuzzy PR of the so-called sharing economy Steven Hill’s Raw Deal: How the “Uber Economy” and Runaway Capitalism Are Screwing American Workers should be required reading… Hill is an extremely well-informed skeptic who presents a satisfyingly blistering critique of high tech’s disingenuous equating of sharing with profiteering…Hill includes two chapters listing potential solutions for the crises facing U.S. workers…Hill stresses the need for movement organizing to create a safety net strong enough to save the millions of workers currently being shafted in venture capital’s brave new world…Hill’s book should be close at hand for activists fighting the blind greed of Silicon Valley’s self-entitled profiteers." ―Counterpunch
"A growing underclass scrambling to make ends meet at the whim of increasingly picky and erratic employers, that number could balloon to 65 million within 10 years, or about half of the domestic workforce, warns Steven Hill in his troubling new book, Raw Deal. This brand of worker abuse cuts across industries and company size. Hill calls out Uber, AirBnb, Merck, Nissan, and dozens of others. Hill does a nice job of putting it in starker, easier-to-understand ways. He's more of a storyteller. He gives us faces ― not just statistics." ―Washington Independent Review of Books
"Just read the manuscript for Raw Deal by Steven Hill. And I found myself laughing, crying and nodding my head. It's superbly well written and a great argument for what needs to be addressed in the peer economy model. While we all talk of value creation possibilities, we don't address the gap in value capture. His book nails the argument for where this leads. The name of his book captures what it is for most people. Well worth reading. I might go back and read it again." -- Nilofer Merchant, Best Selling Author, Thinkers50-designated #1 Future Thinker, Fellow of Martin Prosperity Institute
“This book is a must read for those concerned about how technology is disrupting the way we work and eroding the social safety net and how policy makers should respond. Hill delineates a promising new policy remedy: the creation of Individual Security Accounts to ensure that the growing number of workers in the "gig" economy have adequate safety-net protections and benefits.” ―Laura D'Andrea Tyson, Professor of Business Administration and Economics, University of California-Berkeley and former Chair of the US President's Council of Economic Advisers
“Steven Hill's groundbreaking book on the part-time, unstable 'Uber Economy' shows how a new sub-economy becomes a work of law-flouting regress undermining full-time work. Remote corporate algorithms run riot!” ―Ralph Nader
“We love to talk about technological innovation and disruption, yet rarely do we understand and discuss the actual consequences across broader society. Steven Hill's Raw Deal is superb, it is the best book I've read about the consequences of such "creative destruction" as the future hurtles toward us at breakneck speed.” ―Peter Sims, Co-Founder and President, Silicon Guild and author of LITTLE BETS: How Breakthrough Ideas Emerge from Small Discoveries
“For many years, Steven Hill's analysis, commentary and activism have helped shape our understanding of the U.S. political economy. His latest book, Raw Deal, is a riveting exposé that shows with alarming lucidity what Americans stand to lose if we don't figure out how to rein in the technological giants that are threatening the American Dream.” ―Katrina vanden Heuvel, editor and publisher of THE NATION
“A provocative, remedy-based perspective on the joint complexities of economic stability and ever expanding technology.” ―Kirkus Reviews
“Steven Hill has written an important book that will help shape the debate on the "sharing economy." It raises fundamental issues about the extent to which the sharing economy is largely an effort to evade regulations, many of which serve important public purposes.” ―Dean Baker, co-director, Center for Economic and Policy Research
“In Raw Deal, Steven Hill documents in frightening detail the ways in which new forms of work promise to plunge US workers and their families into further economic hardship, risk-assumption, and instability. Fortunately, Hill does not simply anticipate catastrophe; he closes the book with an informed call for institutional reforms that would lessen the negative consequences of these novel yet potentially dangerous forms of work. Anyone concerned with US working conditions - whether American workers, worker advocates, labor market scholars, or policy-makers - must read this book.” ―Janet C. Gornick Professor of Political Science and Sociology, Graduate Center, City University of New York and Director, LIS: Cross-National Data Center in Luxembourg
“Steven Hill has written a timely and important book that raises all the right questions about the future of the 1099 economy. From ground zero in San Francisco, he has the perfect vantage point to see where the technologies and business innovations shaping our world are going. Raw Deal should be required reading for every policy maker trying to make sense of how we ensure the sharing economy benefits are shared by all and not captured by a small group of disruptors.” ―Lenny Mendonca, Director Emeritus, McKinsey and Company
“The best takedown yet of how capitalism's "share" economy is only another shareholder one. Brilliant.” ―Joel Rogers, Professor, UW-Madison, and author, AMERICAN SOCIETY: How It Really Works
“Raw Deal is a compelling work -- a stockpile of empirical analyses, anecdotes, and primary sourcing -- laying out the evidence of the incredibly detrimental, yet often-disregarded downsides of many of the most talked-about 21st century business models. Steven Hill's work is by far the most forceful case I've read describing the tragedy of the commons that is the 'sharing economy,' and provides a much needed reality check for investors, civil libertarians, and everyone who cares about the American dream. At its heart, Raw Deal is a necessary catalyst that encourages us to explore the dark side of Silicon Valley, presenting not only an in-depth critique, but a wealth of proactive solutions that could prevent the pending decimation of America's working class.” ―Sascha Meinrath, Director of X-Lab, Palmer Chair, Penn State University
“Steven Hill's impressive Raw Deal exposes the so called "sharing economy". As Hill explains, the new insecurity of workers produces wealth that is shared mainly with the top one percent using new forms of predatory capitalism. Raw Deal is a much needed antidote to a lot of hype about how insecurity is supposedly the ticket to prosperity.” ―Robert Kuttner, coeditor of the American Prospect, author of DEBTORS' PRISON: The Politics of Austerity Versus Possibility
“Raw Deal combines compelling stories with lots of evidence and policy prescriptions in a one-of-a-kind book on the "new economy." Getting below the techno-babble hype about "sharing" and "disruption," Hill shows the enormous human costs of "no rules" labor markets.” ―Jeffrey Pfeffer, Professor, Graduate School of Business, Stanford University, Fortune columnist, and author of LEADERSHIP BS: Fixing Workplaces and Careers One Truth at a Time
“Steven Hill’s book Raw Deal is a red-faced, steam-out-the-ears indictment of sharing apps. Yet Hill offers a pragmatic, almost post-ideological solution: “individual security accounts” for workers. Companies that use independent contractors, or offer scant benefits for employees, would have to add on a certain percentage of their pay as a contribution to those accounts, which would cover health care, unemployment insurance, and more. There’d be a mechanism ― and a requirement ― for companies to contribute to the long-term well-being even of workers who aren’t on their traditional payrolls.” ―Dante Ramos, Boston Globe
“Raw Deal is a book for its time. Steven Hill perfectly captures the anxiety of the American worker in today’s increasingly digital economy. Hill presents some compelling ideas, the most important being something he calls the Economic Singularity. In this unfortunate tipping point, the concentration of wealth in the hands of the few results in economic implosion because the 99 percent can’t afford to buy anything the 1 percent has to sell. The United States is turning into a nation of 1099 workers who eke out a living driving cars, renting rooms and running errands for people who apparently have better things to do with their time. Throw in self-thinking computers and obedient robots, and there won’t be any work left for plain old Homo sapiens...Hill proposes that we offer 1099 workers a new safety net consisting of tax deductions, individual security accounts and multiemployer health care plans. All good ideas." ―Thomas Lee, columnist, San Francisco Chronicle
About the Author STEVEN HILL is a Senior Fellow with the New America Foundation and a Holtzbrinck Fellow at the American Academy in Berlin. He is a veteran journalist and author of five books, including the internationally praised Europe's Promise: Why the European Way is the Best Hope in an Insecure Age, which was selected as one of the "Top Fifteen Books of 2010" by The Globalist. His articles and media interviews have appeared in the New York Times, Washington Post, Wall Street Journal, The Atlantic, Financial Times, The Guardian, Le Monde, Die Zeit, Project Syndicate, Los Angeles Times, The Nation, Politico, Mother Jones, Huffington Post, Salon, Slate, BBC, C-SPAN, Fox News, NPR, PBS, Democracy Now, Austrian Public Broadcasting and many others. He lives in San Francisco, CA.
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Most helpful customer reviews
23 of 27 people found the following review helpful. The 'New Deal' is a 'Raw Deal' for Workers By Loyd Eskildson Having worked as a cross-country truck driver for the last decade or so, I've observed several trends adverse to the 'little guy' (drivers). One exception is that a number of companies are switching from paying on a 1099 (driver is an 'independent contractor,' responsible for paying self-employment taxes, and receiving no benefits - overtime, disability, paid sick, holiday or vacation leave, retirement, unemployment insurance) to a W-2 basis, so at least the driver isn't hit so hard by the self-employment tax; some are even providing a semblance of benefits (vacation, subsidized health care). On the other hand, there has been an increase in 'owner-operators,' who by virtue of owning/leasing their own truck become responsible for maintenance (an encouragement to take better care of the truck, and improve fuel economy), as well as keeping the truck moving so as to cover lease/purchase requirements. Another problem for most drivers - they're paid by the mile, regardless of road conditions, or delays due to poor maintenance. One of the latest - Uber and Lyft, which by their very nature mostly charge less than taxis, while once again making the driver responsible for fuel, capital investment, and maintenance. The result - implied claims of driver net income that can't possibly be true. And there are now more and more independent contractors delivering packages to people's doors - what little I know about what they're paid suggests that like Uber/Lyft, those involved are responsible for buying/maintaining/fueling their own vehicle - and undoubtedly not netting nearly as much as they were probably led to believe. As for those poor drivers who focus on transporting trucks from one owner/location to another, that sector has gone from reimbursing expenses for fuel, rooms, and transportation between jobs (the company assumes all risks) to where a flat (inadequate) fee is paid and the driver assumes all risks. Overall, I see the 'sharing' economy as more oriented towards dumping more/all of the risks on drivers, as well as the little guy having far less negotiation power (no union, company not exposed to uncovered fixed costs).So, I picked up 'Raw Deal' to see what its authors had found. Uber, says its CEO and founder, boasts his company will 'make car ownership a thing of the past.' Ridiculous. And valued at $51 billion, larger than Delta or United Airlines, and approaching that of G.M. and Ford - even more ridiculous. It's a dead end for workers. So is employment as a freelance temp. There's no doubt that workers in such situations experience lower wages, less security, little/no benefits, while the firm's owners are living high.The top one-tenth of 1% of Americans (160,000 families) own nearly 25% of the nations wealth, a share that has doubled over the last few decades. The Federal Reserve' Survey of Consumer Finances in 2013 found that the top 10% of families own 75.3% of the nation's wealth, while the bottom 50% share has fallen to 1.1%. Author Hill also points out that while corporations have seen a 30% rise in profits since the Great Recession in 2008, and in 2013 netted an all-time high of $2.1 trillion, marquee companies have slashed their American workforces by 2.9 million while increasing employment overseas by 2.4 million between 2000 - 2010 (offshoring, sending jobs to Mexico and Canada). On that $2.1 trillion in profit they paid an effective tax rate of just under 205, one of the lowest rates since 1931 and only a third the rate paid in the 1960s and less than the rate paid by most middle-class people. The share of federal tax revenues paid by U.S. corporations has fallen from 33% in 1952 to 11%. Six years into the recovery, the economy has nearly 2 million fewer jobs in mid- and high-wage industries than before, and 1.85 million more in lower-wage industries.A 2014 study commissioned by the Freelancers Union found that over one in three workers ((53 million) are now freelancing; other estimates predict this will grow to nearly half of employed Americans. A declining unemployment ate is simultaneously occurring with a declining employment rate.Job automation, robots, 'smart' devices have been replacing many humans in the workplace, and experts believe this is about to accelerate - '47% of existing U.S. jobs are at risk from computerization over the next 20 years.' In 2010 the Washington Post reported the first decade of the 21st century resulted in zero net job creation in the U.S., a 'lost decade.'Since WWII, no decades has had job growth of less than 20%.More and more Americans are turning to 'monetizing' their assets - eg. rending out their homes, cars, and labor. ('Winners' on the 'labor brokerage' websites are not paid for their search efforts, increased travel-time, dealing with flakes, the cut taken by the sites (usually 10-20%). There's no guarantee of netting the minimum wage. Some of the sites (eg. 'Fiverr') pay as little as $5/job, and 70% have at least a B.A., 20% a master's, and 5% a PhD. The 'good news' - you're your own boss!The top 5% of households are responsible for 30% of consumer spending, up from 23% in 1992. Hill envisions that eventually our economy will implode from too little consumer demand.Increasingly temps aren't very temporary - some employed at the same company for 11 years. The median wage of temps is 22% below that of all workers.Merck sold its Philadelphia factory to a company that fired all 400 employees and then rehired them as independent contractors. Merck then contracted with the company to make antibiotics, using the same employees. An Arizona P.R. firm, LP&G, fired 88% of staff, then rehired them as freelancers working in their homes, with no benefits. Similarly with 'Out' magazine.The Internet site Upwork draws from workers all over the world, looking for work as logo designers, article writers, website developers, translators (competing with Google 'Translate'), application developers, etc. Creative workers from developed countries try offering their services at 10 - 30X the rate of those from the developing world - not a likely opportunity for success. It has 10 million contractors spread across over 180 countries, with 25% of those in the U.S. Facebook, for example, subcontracts to Upwork the screening of its one billion users' postings to make certain they meet community standards for decency, etc. Upwork employs about 50 in this activity, from Turkey, the Philippines, Mexico, India, and Morocco at about $1/hour. Upwork also provides software that tracks computer keystrokes, mouse movements, periodic screenshots.TaskRabbit was formed in 2008 and connects domestic freelancers for eg. fence painting, grocery shopping, assembling a piece of furniture. It has about 25,000 contractors in 18 U.S. cities + London. Customers provide ratings and reviews of the contractors; the site takes a cut of 20% to 50% of what is paid. Often the job is bigger than advertised - with the contractor risking a bad review if he/she requests more or refuses. About 70% of contractors have at least a B.A., 20% an M.A., and 5% a PhD. Obviously they're not paid for their search or travel time, given any benefits, their work-life is unpredictable, and they have to struggle with about 40% of customers for payment. According to the 'Economist,' they're paid about 25% less than those employed full-time in the same job. Temporary agencies rake off about 40% of the wages paid.Automated hospital pharmacists (PillPick), stock traders (employees at financial stock-trading desks dropped 8.5% in 2012 have been automated. Specialist doctors are those most at risk for automation because they have a small range of problems. It's estimated that the shift to e-discovery will lead to one lawyer sufficing for work that once required 500 lawyers. 'Truck driver' is the #1 occupation for men in the U.S., employing 1.7 million (95% male) in 2012.Another site, 'Spare5', monetizes brief moments (eg. riding the bus) to do simple tasks like label slideshows for less than $1/hour.
7 of 8 people found the following review helpful. Terrific analysis of the "sharing" economy By K. Petersen Terrific analysis of the "sharing" economy. Author identifies that only the few are benefiting from this sharing -- and it is not those who do the work. Has sound suggestions for making it right.
3 of 3 people found the following review helpful. Our model we have built our world on seems to be broken. By Daniel D. Teoli Jr. Our model we have built our world on seems to be broken. Book offers a good rundown how our world as we know it may be headed off a cliff. No pensions, fewer jobs with benefits. Gigs, freelancing and winging it are the future. Hill outlines the issue as a growing army of "freelancers, temps, contractors, part-timers, day laborers, micro-entrepreneurs, gig-preneurs, solo-preneurs, contingent labor, perma-lancers and perma-temps." Even if the job offers benefits, the high cost deductible for med care is prohibitive. Hill warns that many of our future jobs will be taken by robots. The young workforce that is coming up are overloaded with college loans that they can hardly pay off. I don't pretend to have a crystal ball, but with an ever growing population, higher living expenses and less jobs...something has to give.The Uber / freelance economy is either good or bad depending on how you look at it. One side says it offers money to a wide group of people willing to share. It offers jobs to people that a company could not afford to offer unless it could hire independent contractors. The other side of the coin says it takes away traditional jobs and replaces them with part time gigs that offer no security or benefits while cutting into established businesses profits. Businesses hiring independent contractors is not new. With or without the Uber economy the trend has been to offer less and less full time jobs so the employer does not have to offer benefits.I don't have any perfect answers to the problems that face us in the future, it is just how things have worked out. The book does not give magic bullet answers to the problem either. It does a great job in outlining the issues, but some problems society make are not easily fixable. Really, it Is the American way...as a capitalistic society money is our god. If we were bees or ants we could be communists. Can you imagine bees or ants as greedy capitalists? They would be extinct. Self-centered, greedy humans cannot be successful communists as the result is worse than capitalism. Someone mentioned a universal allowance to give to people. Well, that is a start. The other option is free tents...as the future outlook is dim. I highly recommend you read this book and take your possible future to heart for it effects us all.
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