Shared economy

Shared economy as competition to state law

Uber, Liftago, Airbnb, Flatio, SharyGo and many other services that are part of the "shared economy" phenomenon are an anticipated next step in economic development. It emphasizes the importance of something that so far few people in the economy have been able to "convert to money" - the importance of contacts and the fact that man is a social creature. The future of business is in mediation, which, however, threatens the bureaucratic management of society and state law.

Trafficking in human beings

Whatever you do, you do business in any field, as an entrepreneur you do one thing in particular - you connect. Restaurant companies connect people with the skills needed for hospitality (chefs, cleaners, waitresses) and those who are looking for such skills (customers). The company as such is just a large intermediary organism, which connects people.

In the case of, for example, craftsmen who are looking for customers themselves, it is a 2-in-1 connection - I have the skills and I am looking for customers myself. However, this is not 100% effective - I can't specialize only in what I do best and so I lose part of the revenue. Be a more capable craftsman, so I deprive myself of the proceeds of a craft activity that I do not do when looking for a customer; or I'm more capable intermediary, and I am preparing for the income from mediation by craft activity.

There is no business without people - no matter what technology, product or service I develop / sell, I need people to do it. I need providers and customers, I need specific knowledge and skills. Companies, organizations and entrepreneurs are just big intermediaries. The employee is not a slave, but a supplier for whom it is advantageous that someone else takes care of his sales and agenda. Mediation is so human trafficking.

Economies of scale

In order for mediation to be as profitable and efficient as possible, it is good to have large groups of "suppliers" and "customers" available. In large groups of people, you are more likely to find two people who are interested in supplying and selling their skills, you will do it faster, and you can process everything more massively - that is, take advantage of economies of scale.

This is where it comes entrepreneurial spirit - who is looking for whom? What large groups of people could I bring together? The more specific - and at the same time larger - groups of people it will be, the more turnover I can expect and the more I can do everything automate, to make more profit from the whole process.

We know mediation from the past from traditional forms, such as municipal markets, classic companies, semi-commercial telephone directories, telephone dispatch centers for taxi services and others. If we rank these forms of mediation on a timeline over time, we will see that over time, new technologies have allowed us to connect larger groups of people over greater distances; over time, people came together with less and less concentration more specific interests.

The village or city market connected people relatively expensively - the seller went to the market with uncertain earnings, the buyer hoped to find what he was looking for. The first companies and factories were already taking care of and securing sales, and the production employees did not have to worry about that, but also because of the huge and, from today's point of view, inefficient administration. Telephone dispatchers have already been able to combine specific customer requirements with specific options for suppliers (eg taxi drivers), ie with higher efficiency.

What is the next step? The internet, of course.

Shared economy as another step of development

The Internet is a network, a technology that connects people at a relatively low cost. It is a technology that can personalize the content that is given to the supplier or customer very specifically. It is a technology that directly asks for use in mediation.

Thanks to the use of this technology, you can connect people around the world but also locally with the very specific and specific requirements at a very low cost. Thus, Internet technology - in contrast to mediation through the "municipal market" - allows to meet the demand for those as well the most bizarre abilities and characteristics, can connect people with very specific requirements, thanks to the cheapness, flexibility and efficiency that the Internet brings with it.

The more flexible so mediation through the internet is the more specific needs are met. It's not just about sharing driving (Uber) or housing (Airbnb), but also for example about job market, when a more flexible possibility to change jobs creates more pressure on employers regarding wages and working conditions. That's right flexible market, not state regulations that help ensure that employees are not slaves to their employers.

Bureaucrats defend their existence

However, a wedge will fall into this smoothly functioning machine - the lap of government bureaucracy. The bureaucrat needs to defend his existence. His social status is not given profit ratewhich generates in the voluntary market, but budgetwho gets for himself. A larger budget will then be given to a wider agenda.

However, the functioning of carpooling without state intervention (Uber) shows the unnecessary nature of the existing bureaucratic restrictions (taxi service). Uber is not a threat to taxis (many of them already ride on Uber), but above all by endangering bureaucratic posts. Therefore, the vast majority of state responses to Uber is not deregulation of the taxi service, but on the contrary, the regulation of Uber. At first glance, this is an illogical step - why keep pre-flood and unnecessary taxi regulations, when it is clear that it is possible without them? But…

... bureaucrats would lose their seats.

Politicians are defending their existence

But we move on - bureaucrats are not the only ones in danger. Intermediary networks, such as Uber, must constantly keep an eye on the competition, both in terms of price and working rules. The intermediary acts as a guarantor of services - and the better, the greater the trust of suppliers and customers, the better it will retain stronger market position. These services thus create their own rules, internal regulations and "legal frameworks" for operation, which evolve much according to market requirements more flexible than national law.

This is, of course, a threat to politicians - why pay an expensive state political apparatus for the "setting of legal norms" when the market clearly manages itself, better and more efficiently?

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