Earlier quoted context omitted.
But the problem is that the labor "market" has many weird inefficiencies not found in the usual "buyer X selling widget Y" model of the free market. For example, the poorer you are the less elasticity you have in your labor "product"; by the mere necessity of paying rent and buying food you have to accept virtually any offer that comes your way. On the other hand, employers often negotiate from a position of substant…
I agree that this is a theoretical weakness. In the US currently, though, it seems that this rarely ever comes into play. i.e. in SF the city gives anyone money to survive for food/etc. w/out working. I think truly not having options is very rare in the 1st world in general. If you think this is an active issue here, I'm open to looking further into it. So I agree that while exploitation by monopolies is possible (in…
Your characterization of SF's social safety net seems (charitably) hyperbolic, I think you need to diversify your news diet.
> I think we have mostly taken care of it via social support mechanisms
As with labor elasticity, these are again at historical lows. Basically since Reagan we have gutted our social safety net and replaced it with tax cuts for the employers who then take their extra capital overseas.
> Drivers like it and the company likes it, so what's the problem?
I don't know who you're talking to, but drivers definitely don't "like it". They need it, yes, but the ones I've spoken to seem to have major problems with Uber who has stonewalled them for years.
Overall it sounds like we are starting from very different assumptions about the state of play in the labor market right now, not sure if we're going to bridge this in a comment thread debate. Have a good one!