Elizabeth Warren attempted to address the rise of the gig economy this week, but completely missed the extenuating circumstances contributing to its growing influence. “Gig economy” is the catchphrase for the portion of the economy made up of freelancers and independent consultants. It’s estimated that 1 in 3 workers now, about 53 million, fall into this category.
The gig economy has the potential to be a wonderful thing. What Warren fails to acknowledge is that the ever-increasing government regulations — especially over the last few years –have made it utterly difficult to become a business or stay in business. Couple that with a continuously weak economy and crushing legislation such as Obamacare, and it’s certainly no wonder that businesses are seeking alternative forms of employer-employee relationships. Yet, Warren seems to blame the rich for the economic situation, and then calls for more regulation for how workers are classified.
Of course, the reality is that small businesses have been single-handedly ruined by Obama’s failed policies and overreach. More than a year ago, I pointed out how more businesses are now closing than opening, and this trend has not improved. On the other hand, the rising “gig economy” is how many people are now making ends meet, and how many businesses are now able to stay afloat. The last thing we need is more government interference in the economy.