Not at all what I’m saying.
I’m saying 2008-2020 was a bi-modal situation. Just like the COVID shutdown was: recall how for many workers, it meant working from home and a buildup of funds because there was nowhere to spend it. For another group it meant struggling, gig work, moving back in with parents, and draining your savings - because their entire industry was just GONE. Depending on what numbers you look at, and at what resolution, you see the first group, the second group, or both.
So wages went up during the 2010-2020 period, but for who? Minimum wage didn’t keep up with inflation in most places during that period. More lower paying jobs, less overall power. What are you going to do, quit this $10/hour job and go work at another $10/hour job? Why bother
Locally, minimum wage increased 50% over that period. Inflation was 17% over the same period. Like I asked before, maybe they only exploited workers in certain markets? There is no evidence of the bi-modal situation that you refer to locally. Obviously not all locales are equal, but the remark is presented without local information, hence wanting to know more about what it means. Does Uber treat workers like gold in some markets?
> What are you going to do, quit this $10/hour job and go work at another $10/hour job? Why bother
The reason you'd go to the other $10/hr job is to not face the same exploitation found at Uber. If all jobs on the market are seen as being equally fair, you're not being exploited... You might not be worth what you wish you were, but that's not what exploitation is.
That’s one interpretation of the data. Another would be that a lack of worker power is preventing wage increases. How does your interpretation of the data handle the fact that people on the capital side of the economy - i.e. uber ceos and shareholders - are getting rich off all those $10 hour jobs? There is clearly lots of money in the system… it’s just not going to the workers
On the main point - first in most US states minimum wage has not kept up with inflation.
Second - does minimum wage apply to gig workers in your location? Because in most places they have successfully classified their employees as “contractors”.
As to your point, uber is in many many places in the world - and the degree at which they have exploited their workers is variable. Where I am, uber costs about the same as a regular taxi did before uber arrived. But taxis drivers made and do make more than uber drivers. That sounds like a middle man got in and lowered wages. The same work, less money for workers, more for middle men? That is exploitation.
I appreciate your attempt to find some kind of reply, but, locally, minimum wage is up 1,567% since the first year it was in effect. Inflation is up only 810% over the same period. That's a substantial real gain.
> Second - does minimum wage apply to gig workers in your location?
As of a couple of months ago, yes. But, really, was anyone turning on their car for less than minimum wage before? You'd be losing money hand over fist doing that. There is no purpose in driving for Uber if you are losing money. Doing nothing at all is the clear winner in that scenario.
> Because in most places they have successfully classified their employees as “contractors”.
Which is fair. It's clearly a contractor position by every measure, and remains a contractor position here even with the recent laws surrounding those contracted services. As you can see, contractor doesn't have to mean a free-for-all. Contractors can be given worker rights too.
> But taxis drivers made and do make more than uber drivers. That sounds like a middle man got in and lowered wages.
Taxis, in many jurisdictions, have historically held a monopoly/oligopoly. That sounds more like new competition has increased competitiveness, which doesn't come as any surprise. A lowered price isn't the same as exploitation, though.
Yet people were. That’s literally what we’re talking about here. Because starvation was the other option. Burning your capital (i.e. your car) to the ground was a sensible choice given the other options.
> A lowered price isn't the same as exploitation
See my other comment. It isn’t exploitation, unless someone else is getting rich off it. Which they were.
But that brings us back to the top. If you're going to burn your car to the ground, why not burn it by driving it to an employer? The farmer at the edge of the city has been paying $25-30 per hour (even pre-pandemic), sometimes more, to anyone willing to show up – and still, nobody shows up.
It might not be the most desirable work, and maybe you're not quitting your developer job over it, but compared to losing money driving for Uber because you're in a crunch? You're not losing money making $25-30 per hour in an employment situation, even with some commute required to get there.
As we have discussed multiple times, not all locations are the same, but the question: "Does Uber treat its drivers like gold in some markets?" remains outstanding. There is an implication that Uber is exploitative everywhere (perhaps to varying degrees), and if that's the case, why so where the job market seeks workers elsewhere?
> It isn’t exploitation, unless someone else is getting rich off it.
That's not in line with the common definition of exploitation, and even if you want to use your pet definition, saying that all client-worker relationships are exploitative isn't particularly useful.
What’s that definition?
I’m using exploitation in the common sense of “treating someone unfairly” or “making use of someone for your own gain”.
Work relationships are not always exploitive. Ideally they are mutually beneficial. Sometimes they’re slightly skewed where one party profits a little more than they other. None of that is what we’re talking about.
I imagine they wish they could profit. Uber isn't profitable. They lose stupid amounts of money. It subsists on investments made by capitalists looking to metaphorically burn up their car. Given your definition, if the workers were making more than nothing they would be the ones exploiting Uber.
While your definitions are correct, your interpretation is not. "Fair" in economics isn't some moral position. It simply refers to where people generally agree. If Uber isn't meeting its agreements with the workers then there may be a case for exploitation, but that doesn't seem to be the case. Your point, if I interpret correctly, seems to be that the workers are making agreements that you wouldn't agree to.
And you forgot immigrants, the other large group working minimum wage jobs.
Wages blew inflation out of the water through the later half of that period, so I'm not sure that tracks. Wages struggle to keep up with inflation, let alone beat it, when workers don't have much power. The reality is that the job market was very strong from the mid-2010s onward, save the COVID shutdown period. Although, obviously, not uniformly so.
It is true that the job market was difficult at the beginning of Uber's existence, which is why I said "most of" not "all of". I suppose what you're saying is that the exploitation was short-lived during their early days or limited to certain local markets?