Gig Economy & COVID-19

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#covid-19
#economiccrisis
#neolibralism
#challengesforcaptialists
#gigeconomy
#socialdistancing

Pandemic & Gig Economy- Demanding reforms from Capitalists

World economic system is likely to change the way it has been working since decades. The gig economy will replace the existing economy. Once the gig economy will start working, it will also replace the permanent employment system with contract employments packages. Gig economy system depends on contractual, online stores and online freelancing. In 1915, jazz musicians coined the term “gig” in reference to live performance. Hence, the term generated new job market-live performance. An employee don’t need to thump office door every day, s/he can do work from anywhere. Gig economy is at its peak in United State of America with no plan to slow down. It does not only replacing employment culture but impacting role of legislatures in USA. By 2027, 60% of labor force will be self-driven professional and live performance will be at its peak. The companies will started spending more on improving rights of gig workers.

Development of “Apps” era started in 2000 and it brought revolution in live performance. Airbnb and taskRabbits are the key successful example of live performance by using Apps. These companies have worth of billion dollars. Currently 01 or 03 labor is engaged with gig work and earning handsome amount without entering office premises. Android phone has been playing key role in gig work and even today developing countries in Africa and South Asia, gig work started outnumbering conventional labor market. Despite rise of gig economy, this triple crisis has exposed numerous problems with how we do capitalism. These problems must be solved at same time that we address the novel coronavirus. Otherwise, we will simply be solving problems in one country while creating new problem in somewhere else. As we have experienced the similar in economic crisis 2008. As a result, money ended up back in financial sector and failed to serve the purpose. Policy makers guided people on liquidation but not directed them towards investments. Three main challenges engulfed capitalism market-COVID-19 rapidly increased economic crisis yet unknown about future of ignited crisis. On other hand, climate change is another challenge igniting economic crisis and it cannot be deal business as usual. The killer virus is exposing more flaws in economy structures. Despite of fragile economy situation, states are offering assistance to the contractual employees but it could take more time than expectation. Quarantine not only isolated the society but economy as well. Everything jammed at once. 

What options left with states to move the economy cycle?. This question is forcing states to take worse steps like many states started offering business loans at time when private debt is already high. Over the past decade, many countries have pursued sternness, as if public debt were problem. Subsequently states eroded public sector that we need to overcome existing pandemic. Currently we are living in days of bad news as the pandemic is rising and the good news, possible, is that we can revisit our economy structures. Current crisis could be an opportunity if we build more inclusive and sustainable economy. Here I do not want to criticize state but alarming them to avoid past practices which were based to reap even higher profits but failed to tempt robust and recovery system. The pandemic may prolong the existing quarantine situation and the economy structures of countries are baring financial institutions to invest more on personal debts. In this situation, only gig economy is the option left with people- live performance to earn bread and butter at least. The associated workers with gig economy may extend their cooperation to uplift the sinking job market.