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LostInParadise's avatar

Is the sharing economy a good thing?

Asked by LostInParadise (31914points) October 1st, 2015

This is more complicated and philosophically interesting than it may at first appear.

The promise of the sharing economy is that it allows people to share resources, providing extra income and making better use of existing resources.

The reality may not meet up to the promise. Take Uber for example. It hires people as contractors, so there are no Social Security benefits or workman’s compensation. The workers need to supply their own cars and are responsible for operating expenses and insurance. There are no background checks on the drivers or safety inspections on the vehicles. A few European countries have restricted or outlawed Uber, in part as a response to taxi companies, which have been adversely affected.

Then there is the question of whether there are limits to what can be marketed. This opens up a whole new area, which I will just touch on briefly. I read of a company that has people wait in line for you. Shouldn’t people be forced to wait in line for themselves? How do we determine what is right to market? Is ticket scalping moral? Should we be allowed to sell children or body parts? Where do you draw the line?

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8 Answers

jca's avatar

When you buy a new car and pay for them to register it, all you’re really doing is paying for someone to stand in line for you at the Motor Vehicle Department. When you say “shouldn’t people be forced to wait in line for themselves” I don’t think so. If I can afford to pay someone to wait in line on my behalf, why not? I’m not harming anybody by doing that, and they’re not harming anybody by waiting in line on my behalf.

stanleybmanly's avatar

Good question, and particularly apt that it references Uber who’s down side soon becomes apparent to those who drive for it.

Cruiser's avatar

A free market economy is what usually sets the stage for fair and equitable exchange of new goods and services. Same thing occurs in the aftermarket and re-sale markets. Places like E-Bay where people put items used and new up for bid again are bought and sold at a free market price people are willing to pay.

Uber is a unique and interesting endeavor. It seems to have found a niche market wedged firmly in between the taxi and limousine businesses and is also getting a lot of push-back from these unionized companies and I think that is a legal struggle that will be ongoing for some time.

People that do not have the time or energy for E-Bay, Craigslit, garage sale etc. will load up bags and boxes of their unwanted items and drop off at a local Charity and get a nice and often hefty tax write off.

Ticket scalping is another interesting layer to the sports and live music arenas. Something I am not onboard with as I would never pay those insanely high prices scalpers demand and do get. The rub there is the bands or acts putting on the show and the sports teams playing the sport do not see those extra dollars and tax revenue is also lost.

It is indeed complex and even philosophical in many ways and that is what makes the free market so great is that it is us the consumer who votes with their dollar on what they will spend in on for what they perceive or negotiate a fair and equitable price for that good or service.

LostInParadise's avatar

The free market depends on law. There would be no corporations if the owners were responsible for debts and liability. There are also laws against selling body parts for transplants and children for adoption.

jerv's avatar

As part of a couple of such groups, I can say that it can be a good thing, though it can also go very wrong. Like many things, the fundamental nature is neutral and any goodness or badness is a result of the people involved in it.

St.George's avatar

No. Not really sharing – takes advantage of people who are underemployed. All that gas and wear and tear on the vehicle is like borrowing against oneself.

Those who can afford it, benefit from the service, leaving those who cannot with sub-par service (taxi service or public transit for example).

jerv's avatar

@Megan64 You seem to think that “sharing economy” means only Uber.

Personally, I don’t even really consider Uber an example of a sharing economy any more than pawn shops or places that pay for blood/plasma donations.

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