[HN Gopher] Gig workers are organising, in tech-savvy ways ___________________________________________________________________ Gig workers are organising, in tech-savvy ways Author : edward Score : 113 points Date : 2020-05-07 18:54 UTC (4 hours ago) (HTM) web link (www.economist.com) (TXT) w3m dump (www.economist.com) | paulpauper wrote: | gig workers are going to be at a big disadvantage in coming | months due to increased labor competition from laid off worker, | depressing gig wages and increasing competition. | [deleted] | DoreenMichele wrote: | Looked at from the other side: There is safety in numbers and | this trend could help shift power to the worker, especially if | they are savvy about organizing. | | I've done gig work for a few years now. I am pro gig work and I | think it can be a good deal for the worker even though it | currently has a terrible reputation as being a raw deal for the | worker. I'm happy to see that the pandemic is fostering | development of this sort in this area. | taurath wrote: | How do you prevent scabs when work is decentralized? | hinkley wrote: | Referrals still count for a lot in software. | | So the tricky bit will be that if the caliber of workers in | your guild (or whatever you wish to call it) is below | average, then you have to make it up in volume. | | If it's high, then you will get a feedback loop. | DoreenMichele wrote: | I have no idea, but I don't think you need perfect control | over everything. | | _The more you tighten your grip, Tarkin, the more star | systems will slip through your fingers. -- Princess Leia_ | | I think we just need to work out what is a reasonable rate | and the expectation that gig work should be a means to make | a living wage for people who do it and not just for some | sliver of the people who do it, but for most people who do | it. I'm okay with there being a learning curve and yadda, | but it shouldn't be a situation where only some really tiny | fraction of people have any hope of making it and then they | have to live in terror of the rules changing overnight on | them and killing their livelihood. | | Part of the value of labor movements is just setting the | expectations for both sides that "You need to pay X amount | for this." A lot of stuff we do is basically culturally | determined and labor movements help shape culture and | cultural expectations and so forth. | | So I don't think details like that are necessarily | important. Sometimes they are, but sometimes they aren't. | And sometimes they can be a real threat but don't have to | be if you have your priorities straight. | | I don't care how we get there, I just would like to see gig | work become something with a reputation as legitimate work | that should reasonably support you if you meet some | reasonable standard of quality and put in some reasonable | number of hours. I think we need to ditch this idea that | gig work is simply slave labor and is unfixable and needs | to be converted to regular employment because that's the | model we are familiar with and know how to package up in a | way that works reasonably well for both sides. | bubbleRefuge wrote: | Hoping someway, somehow, something like medicare for all comes to | fruition at the national scale given that the economy will become | even more of a gig economy than pre-corona. Can't understand how | this is not being talked about much since Bernie dropped out. A | good family plan for a gig worker (without subsidies) is like | 1500 a month in major markets. | hinkley wrote: | I don't know what the fee structure looks like, but there are | at least a few tech organizations that offer insurance. | | https://www.washingtontechnology.org/ | | Should probably be more of these, cooperatives, and foundations | that work on software to support bootstrapping. | vkou wrote: | > Can't understand how this is not being talked about much | since Bernie dropped out. | | It's not being talked about much because it is unpalatable to | the pro-big-business arm of the Democrat establishment. And you | cannot find a more pro-establishment candidate than Biden. | | We'll get a chance to try again in four years. | wolco wrote: | You won't because the super delegates + plus press control | over friendly outlets prevent candidates the public loves | from winning and gives them candidates they are told they | should like. And even though they look good on paper they | never feel right. Then the general election happens and the | other party wins because whoever their candidate is they | generally have populist support. Once in a generation people | do get the candidate they want but they give themselves a | serious disadvantage each year. | blockmarker wrote: | Just because you don't like the candidate it doesn't mean | that nobody else does. | drngdds wrote: | You what? Biden won because the public liked him more than | Bernie, as you could see by the polls and the vote counts. | bubbleRefuge wrote: | You mean Big Insurance Big Pharma ? Because I think most | businesses , big and small, would benefit from a universal | medicare type solution. One less thing to worry about for | them and presumably government funded/single payer/ yada | yada. It seems to me the whole theory that government | programs need to be "paid for" is out the window as the Fed | has 6T on their balances sheets and Congress has instructed | the Treasury to spend 1.5 or 2T on C19 relief by printing | treasury securities(that the Fed can buy if needbe). So its | not about how can we fund universal health care ( and also a | more dignified Social security retirement system [leave that | for another thread]) its about the will to freaking do it and | stand up to Big Pharma, Big Medicine, and Big Insurance | lobbies. | whb07 wrote: | So if the healthcare and insurance markets are screwed up | because of government, the solution then is more government? I | always find this logic lacking. Maybe I could get an eli5 from | someone ? | vangelis wrote: | What is government to you? Does government add complexity? If | complexity is the issue, then folding multiple insurance | companies with different reimbursements rates and interfaces | into one entity should reduce complexity. Hospitals already | deal with CMS, why not only deal with CMS? | Eric_WVGG wrote: | The parent post said nothing about healthcare and the | insurances markets being screwed up because of government. | | The argument for single-payer hinges on the theory that the | profit motive is incompatible with the very idea of insurance | (that is, as long as denying services is more profitable than | providing them, an insurance market is an inefficient way to | provide said services). | bhupy wrote: | It's complicated. | | 1) "Single payer" is not the only way to deliver universal | healthcare. Germany, Switzerland, Netherlands, Singapore | all have thriving multi-payer systems. In Switzerland and | the Netherlands, ALL insurance is private. In Singapore, | while the government covers catastrophic care, 70% of total | health expenditures are private. | | 2) The biggest problem in the US is that healthcare is just | more expensive, and American insurers end up having to pay | more. An example: doctors in America earn more (PPP | adjusted) than in any other country. MRI's in America cost | more (even on the Medicare fee schedule) than almost any | other country. A lot of this is actually caused by a series | of well-intentioned policies passed over the last half | century. | | 3) In the US, for-profit insurance profit margins are a | pretty meagre 5%, which doesn't really make a dent in | costs. Also, some of the biggest insurance providers are | non-profits (Blue Cross Blue Shield, Kaiser) | | 4) Medicare fee schedules aren't that much better, in fact | the part of Medicare that's actually working the best is | Medicare Part C (Medicare Advantage), which relies on | private payers. | | Source: I work at a claims adjuster | MiroF wrote: | At least in Switzerland, the government pays if you are | paying more than 8% of your income, the government caps | deductibles, and the government prohibits profit seeking | for the basic plan. Very different from the US | bhupy wrote: | Sure, I'm not defending the US status quo, just attacking | the idea that "single-payer" is the best/only solution. | Not arguing for an anarchist free-for-all either -- some | of the most successful private healthcare regimes | (Switzerland, Singapore) are also well regulated. | andreareina wrote: | Government doesn't need to turn a profit off of the | healthcare system. Arguably that is (or should be) part of | government's remit: to provide infrastructure and services | that can't reliably be provided at a profit, yet serve the | public good. | bhupy wrote: | Private insurance profit margins are, on average, about 5%. | Reducing healthcare costs by 5% doesn't get you very far. | MiroF wrote: | Even conservative economists are more charitable and | cogent in their critique of m4a than this comment is. | bhupy wrote: | ...can you elaborate? | | I can tell you ALL about M4A vs private insurance, I | currently work at a claims adjuster, and adjust claims | myself. | karpierz wrote: | The public option isn't supposed to replicate private | insurance. Monopolistic/legislative powers allow the | public option to set market rates. | bhupy wrote: | That's true, in theory, but in practice Medicare fee | schedules aren't that much better than private insurers. | | Additionally, providers themselves are starting to charge | out-of-network rates that are LOWER than Medicare fee | schedules. For example, Wal-Mart has launched healthcare | in Georgia, charging $25 for a cleaning[1], which is | significantly lower than the amount for a cleaning | (procedure code D1110) set by Medicare/Medicaid. You can | look it up yourself by visiting the FAIR Health code | lookup tool | (https://www.fairhealthconsumer.org/dental/results), and | setting the ZIP code to that of Carlton, GA (location of | the Wal-Mart clinic), 30627. The average allowed amount | is $64. | | Finally, the US government has historically been pretty | bad at setting prices, as a monopsony buyer. The US | military spends more per capita on the military largely | because it pays more per-soldier, per-fighter jet, etc | than any other nation on the planet. You would think | that, as the sole buyer of US defense sector fighter | jets. The F-35 is expected to cost $1.5 trillion (!!) | over its lifetime, and the US enjooys | monopoly/legislative powers over that cost. | | NASA's planned SLS moon mission is a bit of a disaster -- | way over budget and way behind schedule. Because the | boosters aren't reusable, each launch is expected to cost | $1B (with a B) dollars -- EACH launch[1]! Meanwhile | SpaceX's target cost-per-launch is $50M. | | While you're right that, in theory, a monopsony can | extract the lowest possible price, there's absolutely no | guarantee of this, indeed American empirical evidence has | at times proven otherwise. | | [1] https://www.bloomberg.com/news/articles/2020-02-25/wa | lmart-t... | Kluny wrote: | Government is made up of people. "More" government isn't a | meaningful term. The difference is who is in that government, | how they are educated, what their values are, and how much | trust they have in each other. | pixelatedindex wrote: | I don't know about "more" government, but "less" government | is also not the solution. The real solution is a "better" | government, and that's a very layered problem. | | Either way, we pay a lot more for a very subpar health | ecosystem compared to the rest of the world. | sequoia wrote: | Single payer isn't _just_ "more government," it's also "more | open market competition" at least in my limited experience as | an American in Canada (been here almost three years). | | Single payer means _everyone_ has a health card entitling | them to spend tax money on their own healthcare how they want | (within certain parameters, of course). This means health | insurance companies don 't get to act as cartels, limiting | (patient) access to care, and, crucially, limiting _provider_ | access to patients & patient dollars. If I want to see a | doctor in Toronto, I don't go to the doctor "in my network", | probably at a big practice that has some convoluted agreement | (or not!) with my particular insurance provider. If I want to | see a doctor in Toronto, I can basically go to any available | doctor who is taking new patients. | | Imagine _literally everyone_ has a health-care budget to | spend, regardless of how rich poor they are. Can you imagine | the type of competition & innovation this creates for those | health-care dollars? Pharmacists remember my name & ask | whether the meds worked as expected, doctors will visit me | _at my house_ (this has been cut back by the latest | provincial government), I can check wait times at drop-in | clinics online & book an appointment, see a doctor same day, | even within a couple hours. Try that in the USA without going | to the ER, and even then I'd be surprised if you see a doc in | less than a few hours. | | I was amazed to see the competition and market innovation in | healthcare in Canada when I arrived here. You might be amazed | as well. | [deleted] | bhupy wrote: | Doesn't have to be national -- Canada's single payer healthcare | system 1) is Provincial, 2) came about gradually from Province | to Province. Saskatchewan was the first Province to offer | single payer in 1947, followed by Alberta in 1951, etc. By | 1961, all Provinces had some form of a single payer healthcare | system. | | The US can do the same, this doesn't have to be all-or-nothing | at the Federal level. | sudosysgen wrote: | Not really, US States are much less powerful and represent a | smaller fraction of the whole than Canadian provinces. A US | state wouldn't have the power in practice to implement | universal healthcare. | bhupy wrote: | What? | | US States are | | 1) far more powerful than Canadian Provinces, to the extent | that anything not explicitly delegated to the Federal | government by the Constitution is left to the States (10th | Amendment) | | 2) nearly every single state in the US has a GDP per capita | on par with whole European nation-states, which is more | than enough to fund a single-payer system | amiga_500 wrote: | Surely New York could bankroll this. | neonate wrote: | https://archive.md/4weWH | yarinr wrote: | Thank you. Seems like everything is pay-walled these days... | formalsystem wrote: | I went out to grab a burger last night and there was a huge line | of Uber Eats drivers and they were waiting for what seemed like a | long time especially considering how little they're paid. | | Is there any reason why an OSS Uber competitor wouldn't be | tractable? Drivers and passengers can pay a small booking fee | which would go towards maintaining server costs. Client app can | be really bare bones and I believe people would be willing to use | it if it's way cheaper. So many scammy people talking about | decentralized computing but this seems like a low hanging fruit | which gives gig workers their autonomy back. | | Same question for all gig worker apps. | sequoia wrote: | I have seen this question come up a lot recently when food | ordering apps are on hacker news (disclaimer: I work for one of | "those companies"). | | My answer is this: Respectfully, if you think creating & | running a platform like DoorDash is not that complicated, I say | knock yourself out. Show us the low-fee, "non-exploitative", | reliable, "OSS" solution. There's even white-label delivery | platforms[1] (you bring your own fleet) that could get you | started dispatching orders right away. To be honest I'm not | sure what you mean by "OSS" here as the issue is not | proprietary software but the digital and physical | infrastructure, payment processing, fraud prevention, merchant | recruitment etc. as well as the very large support staff. | | I would love to see better and better solutions to the | "convenient, cheap, fair-to-couriers, fair-to-restaurants food | delivery challenge." I think you'll find it's a more difficult | problem than it seems at first blush. | | 1: https://onfleet.com for example | clairity wrote: | i thought about this recently too. the technological | complexities are not trivial, but they're dwarfed by the | operational, marketing, and regulatory ones. for instance, who | handles crimes like assault or theft between the various | parties? who sets up payments and issues refunds? | | i'd love to organize/contribute to something like this, but it | has some serious hurdles to think through. | spaced-out wrote: | Even the technical challenges are significant. It's one thing | to make an app, it's another thing to have a 24/7, global, | distributed application with lots of money running through | it. You'll need site-reliability teams to handle maintenance | issues and a significant number of developers on staff. If | there's some new law, regulation, or bug which requires | changes to your system it needs to be done NOW, not whenever | someone gets around to it. | | >who handles crimes like assault or theft between the various | parties? who sets up payments and issues refunds? | | Lawyers. You're going to need a lot of lawyers. | clairity wrote: | yes, i didn't mean to imply that the technical challenges | weren't substantial. real-time matching and routing are | also not trivial. | eblanshey wrote: | Would be cool to have an open protocol where anyone can make | an app to hook people up P2P. | | > who handles crimes like assault or theft between the | various parties? | | If it's P2P, then the same as any other P2P transaction. If I | pay a random dude to deliver my lunch, and he assaults me, | this is handled by the local police. It's a risk I'm willing | to take if I choose to trust him. A distributed trust system | w/ reviews will help make things safer. | | I feel like sometimes we seek 100% safety in a world where | that's not possible, and when it DOES happen we point | fingers. With a middleman like Uber we can point fingers more | easily, but ultimately we're responsible for ourselves. | | > who sets up payments and issues refunds? | | There are public escrow services such as escrow.com that | could be integrated. And there's always cryptocurrency. | clairity wrote: | i like p2p as the default, but i'm not as confident that | the liabilities go away so easily with that configuration. | | totally agree that the world is full of risks and sometimes | we just have to accept them. | | escrow in some form would likely be necessary, but the fees | of escrow.com are prohibitive for this use case. | | instead of pricing being controlled by the marketplace, | it'd be cool if it were more like a trading platform where | riders bid for rides and drivers offer rides (with | considerations for starting point, distance, and trip | time). | karpierz wrote: | How do you prevent your platform turning into a tool for money | laundering/extracting cash from stolen credit cards? | bhupy wrote: | The operations are non-trivial. UberEats, DoorDash, GrubHub et | al all have full-time operations personnel in nearly every | market they operate. Operationalizing this requires things like | fraud/risk protection, order defect minimization, courier | safety, refunds/chargeback adjudication etc. | | Not to say that this CANNOT be done in a decentralized, OSS way | -- but it's not just a CRUD app. | DevX101 wrote: | I'm surprised it's taken this long for some tech enabled labor | platform to emerge. Power is gained by coordinating some portion | of the value chain into a single node. Amazon is powerful because | they can centralize demand into a single node (Amazon.com) and | then force suppliers to play their game. Saudi Arabia is powerful | because they can centralize the supply of oil into a single node | (AramCo) and then force buyers to pay their price via OPEC. | | Labor doesn't have a centralizing node, and is consequently | powerless. Even engineers, relatively well paid as they are, are | somewhat powerless. The high salary commanded here is due to | autonomous market forces, not a coordinated strategy. | | Unions used to be strong before the 70s but they've gotten | successfully defanged by political parties. | | There's definitely room for building MASSIVE and powerful without | the political corruption of yesteryear's unions. | chrisseaton wrote: | > Labor doesn't have a centralizing node | | Why doesn't the US have a Labour Party? That's what we have in | the UK. (But it's not very popular!) | ketzo wrote: | The U.S. only has two parties with meaningful amounts of | support -- Republican and Democrat -- and it has been this | way (with few notable exceptions) since the 1800s. I've been | told this seems very weird coming from countries with multi- | party governments. | | Ostensibly, the Democrats are the "party of the working | people," but a lot of modern leftists (myself included) would | argue that the vast majority are barely more worker-friendly | than the Republican party. | amiga_500 wrote: | The UK and the USA are both based on the UK establishment's | greatest invention: first past the post. This forces two | parties. | | One party is "pro establishment". Then you only have one | party who is supposedly "anti-establishment". | | At this point you only have one party head to keep an eye on. | | If the mood turns ugly (and it won't often because the | establishment own all the press/media), you have to fix the | head of the one "anti" party now and again. | | UK: use the media to circulate a smear campaign against | Corbyn after he nearly got in power and surprised them | | USA: use the media to ignore/denigrate/belittle Sanders as | some kind of insane communist. | | Trudeau campaigned on removing FPTP and as soon as he got in | someone, somewhere told him to drop it like a hot potato. | Legalizing weed was fine, even though this was apparently | hotly contested before, because it's not a real issue and is | there to be sacrificed when real power issues come up. | chrisseaton wrote: | These just seem like your personal opinions on the parties | and the media rather than a comment on why the US doesn't | have a labour party as one of its two main parties when the | UK does. | cced wrote: | Do you recommend any resources that I can read regarding the | defanging of unions? | _jal wrote: | It isn't quite what you're asking for, but _A History of | America in Ten Strikes_ by Eric Loomis is a great book of the | general history of American labor. | | The telling of the stories includes a lot of the strategy and | tactics, legal and otherwise, of busting unions down to where | they are now. | | https://www.amazon.com/gp/product/B078XKHSSB | DevX101 wrote: | I don't study this academically so don't have any good | sources offhand. But the history of union busting has a long | history in this country. In the 1890s steel workers tried to | unionize and strike and Andrew Carnergie sent in the | Pinkerton's (private precursor to today's FBI) to spy on the | unions and break up strikes. They'd do this violently and | many people got killed. | | Today it's less physically violent, but if you get a job as a | floor worker at a big company like Walmart, you've got | mandatory videos about how terrible unions are. And yes, you | will be fired if the word 'union' comes out your mouth on | company property. | mycall wrote: | I always said if sysadmins all banned together, they could | change the world overnight. Let your imagination fill in the | gaps. | chrisseaton wrote: | > I always said if sysadmins all banned together, they could | change the world overnight. | | What do you think they could all agree on though? | DenisM wrote: | Write a movie script, make a fortune! | | Ah but then you might lose the interest in the revolution... | artificial wrote: | Banning as a group? Such as deplatforming everyone as if | they're dictators even though they don't own the network? | andrewflnr wrote: | I believe it was meant to be "banded together". My | apologies if you were aware and trying to make a joke. :) | CrackpotGonzo wrote: | Isn't this kind of what Frank (https://getfrank.com/) is trying | to achieve? | clairity wrote: | that's not the only option. you can strengthen the unions and | amass power in yet another organization, or you can disperse | the power of corporations to better equalize the footings of | the various constituencies. | | while not against unions _prima facie_ , i'd encourage | moderating power structures as the first-order solution over | building new ones. societies should be people-first and power | structures second (or third, or whatever). | mdkrkeo9 wrote: | You mean have them pay taxes | | It doesn't need to be wrapped in technical jargon, y'all | | Aristotle wrote about this shit 2,000 years ago | | This isn't new territory to society | | Look at tax rates between WW2 & Reagan and the growth in the | wealth of the middle class during the same period | | Ffs just accept it: you've been lied to so long you've come | to believe the lie about taxes | | Political unrest at every point along the path of building | human society is centered around gross material inequality | | Stop bloviating at your screen as mom & dad did when Dan | Rather would say something stupid and get to work solving | these problems | | All I see is people creating a market for more of the same | prioritizing rich grandpas demands | | Rather than follow Andreessen, the next generation should | have what he had as a kid: higher taxes funneling shit tons | of resources into local communities to evolve as the people | need, not as finance market speculators dictate | | Pitter patter | johndubchak wrote: | Let's get 'atter. | bhupy wrote: | > Look at tax rates between WW2 & Reagan and the growth in | the wealth of the middle class during the same period | | Are you talking about income taxes? Because, yes you're | right that Federal income taxes are nowhere near what they | were post-WW2, but... | | > and the growth in the wealth of the middle class during | the same period | | ...the wealth of the upper class has grown to historic | levels because the vast VAST majority of upper-class wealth | right now (top 0.1%) is 1) in unrealized capital gains, and | 2) once capital gains are realized, they are taxed at the | same rate that they were all the way up until the 70's, | where it spent a brief decade moderately higher than it is | today. | | Bezos doesn't have $100B+ sitting around in a checking | account, and a WW2-era marginal tax rate wouldn't really | raise as much as you think it would. Most of the richest | billionaires have a salary of $1. | sudosysgen wrote: | Bezos doesn't have 100B$ sitting on a bank account, but | he has a low-interest high throughput equity line against | his hare portfolio that means that if he wants to cut a 5 | billion dollar cheque in the next 30 minutes, he can. | Which is pretty damn close to having 100B$ sitting | around. | | If he did pay a high tax rate every time he realized his | gains in any way or tapped his equity through a financial | instrument, I think things would be much better. But | right now Bezos can pay a realized tax rate of under 20% | if he wants. | bhupy wrote: | Yes, these billionaires take collateralized loans, but | that doesn't change the fact that they will eventually | HAVE to pay taxes. At some point, Bezos has to realize | some gain somewhere to have cash to pay back the loan -- | and odds are, that will be taxed as capital gains, the | rate for which has been essentially constant since WW2. | mdkrkeo9 wrote: | It's even worse then; they truly own less than they claim | and are just de facto in charge because economists (who | I'm sure have nothing to gain by it) let us know this is | all exactly how it works | | If you see everyone as atomic agents of work, is Bezos | worth so much because of cherry picked models favored by | law, or is he himself distributing goods in a universally | mathematically efficient way by some unknown force, | invisible hands and "free markets (in a nation of | laws?)"? | | If he's literally doing it, wow! Ok. But if it's | mathematical efficiency it's mathematical efficiency. | Bezos didn't measure it. He took object distribution and | abstracted it. Wow! Business innovation! | | Nevermind guys like Krugman openly admit Hari Seldon like | powers of bending social agency are exactly his goal | | That's great if the people in charge are truly benevolent | | Old enough to wreck the planet and die before it's a | problem doesn't really suggest to me they're going to be | motivated to voluntarily acquiesce to measurable anxiety | this creates for folks that aren't quite so old | | Again more disingenuous western BS | | That carbon emissions have detrimental effects on human | health and the environment was pretty obvious in London | and elsewhere back in the day | | But since it's not in your neighborhood, those laws of | physics that matter for computers are lying to us when we | annotate the inputs differently? | | Ok. Yup. Shark jump achieved. | bhupy wrote: | > If you see everyone as atomic agents of work, is Bezos | worth so much because of cherry picked models favored by | law, or is he himself distributing goods in a universally | mathematically efficient way by some unknown force, | invisible hands and "free markets (in a nation of | laws?)"? | | > If he's literally doing it, wow! Ok. But if it's | mathematical efficiency it's mathematical efficiency. | Bezos didn't measure it. He took object distribution and | abstracted it. Wow! Business innovation! | | I guess optimization of global supply chains in a way | that enables anyone to practically materialize literally | anything they want within 2 days might not count to you | as a real "innovation", so I'll take a different angle. | | Half of Amazon's revenue comes from Amazon Web Services. | Starting a business today is easier than it has ever | been, thanks in large part to AWS. I work at a small | seed-stage tech startup, and our product runs on | infrastructure that, until recently, was only available | to giant blue chip corporations with the resources to | employ 100s of engineers to maintain datacenters, | databases, tooling, monitoring & alerting, load | balancing, etc. All of that is now available to our tiny | little team for a simple monthly subscription fee. You | can attribute the value of most startups today to the | availability of this infrastructure as a service. | | > That carbon emissions have detrimental effects on human | health and the environment was pretty obvious in London | and elsewhere back in the day | | Not sure how this is relevant to income tax rates, gig | workers, or labor unions -- but we probably agree that | carbon emissions are bad. IMO we should tax emissions as | much as possible. | clairity wrote: | yes, the special rate for capital gains is ostensibly | justified as an investment incentive, but it's | unnecessary for that purpose. investors would still chase | the highest returns for their capital. | | we should instead treat all income the same for tax | purposes. | bhupy wrote: | I mean, no disagreements there, I'm just attacking the | inaccurate and often used WW2 era vs Reagan era income | tax argument. | | Even back then, none of the super rich were paying that | income tax rate, because the wealthiest people in the | world owe their wealth to ownership in their | corporations. | nickff wrote: | Well, one problem that unions have had is that almost every | non-monopoly whose workers they successfully organize seems to | fall apart. It may just be a correlation, but it is also | possible that the unions are causing the failures. | AnthonyMouse wrote: | There is an obvious causal chain there. Companies in non- | monopoly markets have to price competitively or lose | customers. If unions are actually getting anything for their | workers then they would be extracting more from the company | than companies with non-union workers, but companies in | competitive markets don't have thick margins to pay the | difference with so they would have to raise prices, which | makes them uncompetitive. | | This is not an argument in favor of monopolies, however, | because unions can extract more from a monopoly but so can | capitalists, and it all comes at the expense of the consumer, | which is also you. It's better to make $2 and spend $2 than | to make $3 and then have to spend $4 just to get the same | stuff. | Klinky wrote: | Typically it's not make $3 and spend $4, it could even be, | make $3 and spend $2.01. Labor rate going up $1 doesn't | mean unit price goes up $1. | AnthonyMouse wrote: | The entire price paid either goes to labor or capital, | and most of it already goes to labor. If you pay 1% of | the workers $3 instead of $2 then the price may only need | to rise by $0.01, but then you're just taking $0.01 each | from a hundred workers and giving it all to 1% of them. | And what happens after you do that a hundred times? | | Meanwhile, again, introducing a monopoly increases the | money that can be extracted from customers by labor but | also by capital. So if you introduce a monopoly and it | raises prices by $0.01 or $100 or whatever amount, and | you're very lucky and labor gets 90% of the increase and | capital only 10%, then on average workers have lost 10% | of that amount. Because you still pay 100% of the price | increase and then get less than 100% of it back. | | There are also taxes, which make it even worse -- you get | paid $1 more, the government takes 25%, you go to buy the | thing that costs $1 more (so capital is getting 0% of the | money) but then you owe 8% of the $1 in sales tax, and | you've now lost a third of the money you used to have to | Uncle Sam so they can give it to Bank of America and | Halliburton. | acituan wrote: | That causal chain only works in perfect competition where | prices are convergent with marginal cost. In real market | conditions perfect competition doesn't exist just as | perfect monopolies are rare. | | Google and Apple are competing on selling phones, Google | and Facebook are competing on selling ads, yet all sit on | billions of dollars of cash. I don't see their workers | being able to "extract" more from their companies? | AnthonyMouse wrote: | > That causal chain only works in perfect competition | where prices are convergent with marginal cost. In real | market conditions perfect competition doesn't exist just | as perfect monopolies are rare. | | Only "close enough" is required, not perfection. Sure, a | union could negotiate a 1% raise without destroying most | companies, but then they'd eat that amount in union dues | and time value of doing paperwork etc. Meanwhile if they | demand a 30% raise, that's more than the companies in a | lot of industries could absorb. | | > Google and Apple are competing on selling phones, | Google and Facebook are competing on selling ads, yet all | sit on billions of dollars of cash. I don't see their | workers being able to "extract" more from their | companies? | | Are you not familiar with the level of compensation paid | by these employers? | | They are also hardly exemplars of competitive markets. | Think restaurants or farmers. | acituan wrote: | Let's assume your premise is correct. Then it could also mean | that there hasn't been any working combination of capital and | labor that didn't depend on labor being exploited. I don't | believe this to be the case, but your assertion actually | validates the necessity of labor unions, not undermines them. | AnthonyMouse wrote: | Your assumption is that all non-union labor is being | exploited. | grawprog wrote: | To be fair, when I know Union workers doing the same job | as me are being paid nearly twice as much with medical | benefits, sick time, regular raises, proper safety | equipment, regulated working hours etc. It's kind of hard | not to feel a bit exploited by comparison. | AnthonyMouse wrote: | Meanwhile, how many non-union software developers do you | know who don't have medical benefits or sick time? It's | the nature of the occupation rather than the presence of | a union that determines those things in the long term. | | And if you go and unionize workers in an industry where | the workers can't command that kind of premium, the next | thing that happens is the company goes out of business or | moves its operations to Mexico or similar, and then how | are the unionized workers doing on the unemployment line? | vkou wrote: | > the next thing that happens is the company goes out of | business | | As long as the company pays its owners more than their | lowest-paid employees, it can afford to pay their | employees more, without going out of business. | | There's plenty of profitable firms that can't just pack | up and move to Mexico. | karpierz wrote: | Not exactly. Its owners could always pack up and work | elsewhere. Or in the case of capital, invest elsewhere. | You have to beat the alternative option. | vkou wrote: | What is going to stop wherever they pack up to go to from | organizing in a similar manner? | AnthonyMouse wrote: | > As long as the company pays its owners more than their | lowest-paid employees, it can afford to pay their | employees more, without going out of business. | | If the CEO makes a million dollars a year in a company | with 100,000 empoyees, wiping out that entire salary | would add less than $0.01/hour to each of the employees' | wages. Also, then you would not have a CEO, which you | might actually need sometimes. | vkou wrote: | The CEO is rarely the owner of a company big enough to | require unionization. When they are, their primary | remuneration is rarely in wages. | acituan wrote: | Do you genuinely think if FAANG software engineers were | to unionize, those companies would out of business with | their huge cash reserves, or move to Mexico or outsource | to Bangladesh? | AnthonyMouse wrote: | Half of those companies are monopolies or close enough. | But they also already provide very generous compensation, | so what would you expect a union to negotiate for? | | You would also run the risk in that case not that they | outsource to Bangladesh but that they outsource to | Europe, if the union started demanding things they didn't | want to give. Or just let the union walk out and hire | different workers. | | That's the other reason unions don't really work outside | of monopolies. If the company needs 100,000 workers and | only 200,000 workers with that skillset exist in the | world and the other 100,000 work for a competitor, you | need the workers you already have. If the company needs | 10,000 workers and a million workers with that skillset | exist in the world, they can let you walk and hire other | people. And in this case it's a real monopoly, not the | soft stuff like Google and Facebook have -- Google | doesn't have a lot of competition for search, but a | random engineer from Facebook or Apple or Microsoft could | still do most of the work they need to do, and vice | versa. | acituan wrote: | That's not my assumption, as I explicitly stated. I | wanted to show the possibility of a union-favorable | explanation of the OPs premise. | | In case you are curious about my actual assumption; I | think there are a lot of externalities that are not | priced-in in the contract, which will naturally favor the | more organized side, which happens to be capital than | labor most of the time. I don't know if exploitation is | necessarily the right adjective for every case, but I | believe there is a large potential for asymmetry in | untracked disutility an individual can get out a | transaction with their employer. | creddit wrote: | Huh? If you aren't assuming that then how does this fall | out: | | "Then it could also mean that there hasn't been any | working combination of capital and labor that didn't | depend on labor being exploited." | | Is it not your assumption because of the so-called weasel | words "could mean"?? | lazyasciiart wrote: | No, because they already rejected the premise that came | before "Then" | myspider wrote: | An obvious problem was offshoring and arguably the unions | contributed to that by making US manufacturing more | expensive. | | Every so often someone suggests that software engineers | should unionize. Maybe I'm too pessimistic, but I think that | it would be the best thing that ever happened to Bangalore. I | worry about all our jobs ending up in Bangalore eventually, | I'm just hoping I can make it to retirement before that | happens. ___________________________________________________________________ (page generated 2020-05-07 23:00 UTC)