Gig Economy

Alana Samuels offers a detailed analysis of the challenges posed by the gig economy.
While the jobs created by the gig economy appear to be attractive, there are certain hidden
problems that employees in the gig economy encounter. Samuels decided to give it a try and
ended up coming with various insights that can only be explored from an insider’s perspective.
The gig economy uses digital technologies to connect freelancers to jobs. Individuals are able to
work on a part-time basis as opposed to being full-time employees. At face value, the gig
economy seems to be a great addition to the economy. It promotes productivity and helps in
reducing the levels of unemployment. However, Alana calls on us to closely examine the gig
economy in order to understand the plight of the freelancers and possibly make reforms that will
make it work better.
Attaining full employment is one of the critical economic goals in any country. This is
done by ensuring that the level of production of goods and services is increased, and in so doing,
more and more people are involved in the production process. Technology has increasingly
advanced in the recent past. Advancements in technology have introduced new ways of doing
things. The emergence of the gig economy is a result of technological advancements as well as
the growth of the economy. In reading Samuels’ article, I got more insights into the working of
the gig economy and was encouraged to interrogate the issues raised further. Amazon is one of

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the largest e-commerce businesses globally. The company has a large customer base and has
been shipping billions of packages to its customers. The company has employed a low-cost
model, and this could be disadvantaging employees.
Amazon has rolled out Flex which is an innovative way of the company making
deliveries. The service has been rolled out in more than fifty cities. Thousands of drivers have
been employed by the service. However, the article opened my eyes to the issues faced by Flex
drivers. Employees who work in the gig economy are not entitled to certain protections. They do
not get health insurance and pension. There is no guarantee as to the number of hours or shifts
one can work. Employees in the gig economy are not entitled to basic labor protections that are
accorded to employees in other sectors. There is no minimum wage, and they are not accorded
overtime pay. If they lose their jobs, they are not given unemployment benefits. These problems
call for stiffer regulations of the gig economy. The government needs to step up and ensure that
these employees are not exploited by their employers. The gig economy is on an upward trend,
and this means more and more individuals will be attracted to the idea of working as freelancers.
The United States has a mixed economy. The forces of demand and supply, as well as the
government, play a role in the determination of factors in the market. To this end, government
intervention is justified to bring fairness and equitability to the gig economy.
In evaluating the profitability of any venture, one must consider the costs and benefits of
the same. However, the gig economy is based on people not critically evaluating the costs and
benefits. A driver working for Amazon Flex has to incur costs relating to the maintenance of the
car. One also has to fuel the car and pay tolls. There are no unions which further complicates the
welfare of the employees. The employees have no bargaining power with their employers. I feel
that employees who are not in a union are prone to abuse and cannot negotiate for better terms.

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Drivers have been categorized as independent contractors, and this helps the companies to evade
various legal obligations that they would otherwise owe the employees. Many employees
working in the gig economy are getting paid lower than the minimum wage. These employees
are unlikely to raise enough money to keep up with the rising cost of living. There is a need for
stiffer laws that are aligned with the changes witnessed in the economy. Employees need to earn
a decent living that will ensure that their input is aligned with the amount they are making.
Overall, Samuels’ article is insightful and interesting. After reading the article, one gets
the sense that government needs to do more to regulate the gig economy. Employees working in
this economy are experiencing various issues. They are not entitled to health insurance and
pensions. They are also paid at a rate that is below the minimum wage. The government needs to
step up and end the exploitation associated with the gig economy. Companies must be compelled
to respect minimum wage laws, and employees need to be organized in unions that will help in
advocating for their rights. Most companies make huge profits, but workers only get a small
percentage of the profits. The economy can only progress if fairness defines the market.