Why The Game of Business Needs to Change Its Rules
Tim O'Reilly
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Thank you for bringing up the concept of “Efficiency Wage” — The wage at which the worker is satisfied with the job. Will work diligently and efficiently at it. And will provide high consumer satisfaction by producing a quality product. — This is a concept lost in supply side economics. Price and quantity are not the only factors. Quality and customer satisfaction are part as well. But most companies really overlook worker satisfaction which feeds back into the quality/customer satisfaction variable.

Also the article points out a darker type of Sharing Economy. The Walmart example is particularly telling. Business is offloading productions costs onto the taxpayer by underpaying its workers and forcing them onto public assistance. Uber is making desperate people burn up personal capital (their car) for inadequate compensation. The pay Uber drivers get rarely covers their operating costs. Forget about compensating them for their time. I do taxes for a number of Lyft and Uber Drivers and see the numbers. If any of them show a profit on their Schedule C they are either exceptionally efficient or they aren’t really accounting for all of their costs. So what both of these models do is to share expenses with workers and taxpayers and privatize profits. The consuming public is being deprived of consumption dollars. As the cycle continues to its conclusion the general public will end up with all of the costs while a few clever businesses will end up with all of the profits.

Next up, the Robot Consumer! How will all those hard working robot workers spend their robot wages?