What's Wrong Here?

Steven Rosenfeld interviewing David Cay Johnston over at AlterNet:

“Imagine that you are a mortgage lender. Are you going to lend people money for 30 years if they don’t have the security of employment?” Johnston said, offering an example of how the successful push by the technology sector to undermine and overturn the labor laws created during the New Deal are tilting too far toward piecemeal purveyors and will create new instability.

“People are working without salary, benefits, and the stability to buy a house and raise a family,” he said, saying that the blame can be placed at the foot of high-tech lobbyists who have donated to congressional campaigns and federal officeholders who subsequently loosened federal laws to their benefit.

Meanwhile, according to Pew’s New Digital Economy report, 61 percent of Americans have never heard of “crowdfunding,” 73 percent are not familiar with the “sharing economy,” and 89 percent have never heard of the “gig economy.”

The big picture painted by Johnston, who is a registered Republican but schooled in the belief that business prospers when wages and benefits are reliable and income is spent locally, was the fundamentals of middle-class stability are being further eroded by a new technology-based oligarchy. Despite all the hip apps and marketing, gig economy profits are only going to executives while the jobs offered are intrinsically unstable, fiscally unpredictable and most of the risk and expense are placed on contract workers.

 But not to worry, Oligarchs - the great American Intellect Deficit is forever on your side:

Meanwhile, according to Pew’s New Digital Economy report, 61 percent of Americans have never heard of “crowdfunding,” 73 percent are not familiar with the “sharing economy,” and 89 percent have never heard of the “gig economy.”