The ‘Sharing Economy’ Is A SCAM, by Karl Denninger

You can tell by the shining eyes and expressions of benevolent goodness that characterize proponents of the so-called “sharing economy” that its nowhere near what it’s cracked up to be. From Karl Denning at theburningplatform.com:

This is a nasty indictment of so-called “sharing economy” entities.

We found that 85% of side-gig workers make less than $500 a month. And of all the side-gig platforms we examined, Airbnb hosts earn the most by far.

In other words there’s not a prayer in hell you can make a living doing any of this; excluding AirBNB the average person was making under $400 and the median person is making under $200!

What’s worse is that none of this appears to account for costs.

If you make $200 driving for Uber but spend $100 of that on fuel then how much an hour are you actually making?

Oh, and you must account for the deterioration of your vehicle (each mile has a cost in maintenance, deterioration of and consumption of the engine, transmission, suspension parts, tires, etc) as well.

And let’s cut the crap on the name of this thing too.  You share something you would already be doing.  If I’m driving to work and your home and office locations are betweenwhere I would otherwise travel then we could be sharing a ride to work.  If you page me on some sort of app and I make a trip I would otherwise not make I’m not sharing anything — I’m selling you the service of carting your ugly ass from one place to another.  Likewise, the premise of “Task Rabbit” or “Doordash” has nothing to do with sharing; I would never bring you food or deliver your package without being paid to do it because there’s no part of my daily life that involves performing some random task for you.

Note that since this data set comes from people applying for loans the error, if any, is likely to be in overstating their income and expenses are not asked for.

To continue reading: The ‘Sharing Economy’ Is A SCAM

 

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2 responses to “The ‘Sharing Economy’ Is A SCAM, by Karl Denninger

  1. If your activities consume more wealth than they produce, it simply begs the question of what is the source of that which you are consuming, for which you do not produce “replacement”?

    Like

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