The Impact of the Sharing Economy

The Impact of the Sharing Economy

The economic impact of the sharing economy on GDP is growing fast. Although the debate is raging on about whether the sharing economy is benefiting GDP or not there are some undeniable facts that the sharing economy essentially will benefit the economy if the right regulation is put in place. The sharing economy essentially gives our society more options. With today’s unemployment rate at around 5% it can be difficult to attract talented people for the right jobs. That is why Uber is paying large bonuses to attract new drivers. That is also why staffing and recruiting companies get paid big bucks to match talented people with the right positions. Currently the staffing and recruiting industry is $120 billion industry in the U.S. and growing fast.

 

Companies like Uber provide more flexibility to the worker. People don’t automatically start driving Uber. They drive Uber if that is the best option for them to make money. Try to convince a talented programmer to drive Uber. That probably won’t happen. Unless, the programmer is still in school and needs the flexible hours that companies like Uber, Lyft and Yes Crew are providing.

 

The sharing economy also provides consumers with more options. Innovative companies like Uber and Yes Crew allow consumers to easily find what they are looking for. The easier our lives the better. Technology is rapidly changing the way we find things. Although there will be winners and losers along the way, advancements in technology have benefited society. That is not to say people will not lose. Those unable to compete with the efficiency of new technology will be unable to offer the same value and will go out of business. However, just because these companies cannot keep up does not mean that society should not benefit from the value these new technologies offer.

 

The sharing economy has the potential to tremendously benefit society. Not only can the sharing economy offer society more options it can create more wealth for our society too. New technologies allow us to connect with what we want faster and easier then ever. This new technology drives down the costs of finding the things we want. Marketing and advertising are huge expenses for businesses. Shared economies like Yes Crew share the cost of marketing and advertising essentially allowing companies to be more profitable. More profitable companies means more wealth for society. Society will have some rough adjustments to make along the way, but eventually the sharing economy will benefit society.

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