Wednesday, July 18, 2018

Über and the Flaws of Economic Purity


So it’s true I avoided using Über for as long as humanly possible. But it was also true that my truck was seven miles away, across an unfamiliar town, up and down fairly hilly terrain, in ninety-degree heat. Funny how solidarity with the working class and all that other undergraduate Marxism goes out the window when faced with odds like that. So I downloaded the Über app and hailed a ride, because the alternative felt too horrible.

I’ve mustered dozens of reasons why I avoid Über: I already have a vehicle, or I distrust drivers who aren’t licensed and bonded for liability, or their presence in my medium-sized community is too small, or I’ve read horror stories of Über drivers abusing their power over defenseless passengers, especially women. Blah blah blah. Truth is, I researched their business model, and I dislike it. It centralizes control, diffuses overhead onto drivers, and structurally prevents organized labor action.

Reading into Über’s business structure, I’ve seen how they control driver access to customers, and vice versa, through a digital algorithm located God-knows-where, controlled by God-knows-whom, and drivers can accept or reject the terms. Unlike locally owned cab services, who know their dispatcher and the other drivers, Über workers are anonymous, even to each other. Workers who never meet one another can never organize for better wages: according to one report, Über pays poverty wages.

This epitomizes the problem underlying American, and increasingly international, capitalism: we’ve found ways to work around market forces and drive wages down for people who actually create value. The person who drives people from place to place, who returns me to my truck so I don’t have to walk ninety minutes, and can use that time for something productive, gets paid less than the person cooking my burger. I don’t value his labor.

Libertarian economics considers this perfectly normal. A product or service is worth exactly as much as people willingly pay for it. If we’re unwilling to pay more for this driver’s service, that sets the market floor; and if that floor stays too small to pay the drivers’ bills, well, they voluntarily affiliated with Über, they can voluntarily disaffiliate themselves. That’s how markets work.

I object to this reasoning because it treats markets like a universal constant, much like how Isaac Newton treated gravity. That just isn’t true. As economist Hernando de Soto writes, market forces derive from a system of laws, regulations, and traditions so intricate, we often cannot see them. This invisibility works to the advantage of those who profit from that system, because they can pretend they’re beneficiaries of the Invisible Hand, and not winners picked by the state and by fellow plutocrats.

Thus the system always keeps costs low and prices high. Labor, materials, and time have values which can be controlled. The lower we can push these values, while keeping floating prices high, the more uncontrolled profits we can muster. If the Martin Shkreli catastrophe taught us anything, it’s that capitalists citing “the market” demand profit margins that would make Colombian drug barons blush. Fiddling expenses like labor throw impediments in the path of such runaway disparity.

Okay, we know all that. We know it. And yet I still called an Über.

Because I know economics devalues work. I know market forces reward the already well-rewarded, while those who actually create value get punished. Yet it was still hotter than hell, and my truck was a ninety-minute walk away. And if I stood on principle and accepted my personal disadvantage so the rich couldn’t profit of some poor fella’s labor, it wouldn’t make that guy’s need for money go away. Somebody else would still disadvantage him.

So yeah, in a moment of physical discomfort and economic malaise, I paid somebody poorly to do difficult work for me. I joined a system of exploitation I’d eagerly rail against in a bar somewhere (while a waitress making minimum wage replenished my drinks). Because while market forces are artificial, one natural fact remains: one person’s momentary need is another person’s opportunity.

Sitting in another person’s car, listening to his Spotify feed and watching an unfamiliar city roll by, I had plenty of opportunity to reflect on my choices. I know what I believe, but you can’t eat beliefs. Moral purity is a fleeting illusion in this world. And, dammit, very hot days make sticking to your guns impractical. Deep down, economics is a human enterprise. And like humans everywhere, I am a flawed and beautiful beast.

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