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Businesses The Almighty Buck United States

Silicon Valley Has Been Treating Workers 'Miserably' Since the 1970s, Economic Historian Says (recode.net) 153

Don't blame Uber for the problems of the gig economy -- they didn't start it, economic historian Louis Hyman says. Recode: "Uber is the waste product of the service economy," Hyman said on the latest episode of Recode Decode, a podcast. "It relies on a bunch of people who don't have an alternative." Hyman told Recode that the number of people who have to rely on temporary, freelance or other "alternative work arrangements" has been growing since the 1970s, when the era of bloated corporations gave way to businesses that optimized for short-term profits and began treating workers as disposable. "The alternative to driving for Uber is not a good job in a factory with a union wage or working in a stable office job, it's slinging coffee at a Starbucks where you may or may not get the hours you need," he said. "That is what people are shoring up. They're shoring up getting enough hours, trying to make ends meet. Oftentimes, people talk about the gig economy as 'supplementary income' ... It's not supplemental if you need it to pay for your kids' braces, or food, or rent." Hyman argued that this phenomenon could be traced back to the legions of undocumented migrant laborers who built early computers, before those manufacturing jobs moved overseas.
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Silicon Valley Has Been Treating Workers 'Miserably' Since the 1970s, Economic Historian Says

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  • by Anonymous Coward

    People will accept inhumane working conditions to be in on the ground floor of something big. It's too bad that 99.9999% of companies never turn out to be that "something big."

    • by Anonymous Coward

      Do you really think some slob with a soldering iron in his hand for 12 hours a day thought he was "in on the ground floor of something big"? Do you really?

      • by pedz ( 4127433 )
        Are you saying that only white collar workers get misled?
      • Oh ya, some people do think that, I've seen them. They see examples of other companies striking it big, even if rare, and think it will happen to them. The probably need to get to gambler's anonymous though. But they don't often think that even when the company strikes it big that most employees aren't necessarily becoming independently wealthy. You gotta compare how many stocks you have to the total outstanding, and what class of shares you have (first in line vs the grubby ones for people who use a sol

      • I would ask the Woz.

  • by Snufu ( 1049644 ) on Thursday August 30, 2018 @05:13PM (#57227804)

    California is a communist welfare state that suffocates business with regulation, taxes, and worker rights.

    California is a corporate welfare state that exploits workers to feed big business.

    • by Anonymous Coward on Thursday August 30, 2018 @05:34PM (#57227922)

      California has extremely high worker mobility and that is key to success.

      Non-competes are illegal. (This is key. Noncompetes murdered the 'silicon valley' of other states right in the cradle. Being able to hop jobs promotes the sharing of ideas and enables employees to advocate for what's in their own best interest)

      SV companies are largely union free (Unions aren't all pro-labor. They're mostly pro-incumbent-labor and are detrimental to worker mobility.)

      California is generally pro immigration, and that labor supply is key to growth.

      California is an at-will employment state (Employers can let you go with no notice, for any reason other than reasons that are illegal under labor law) which further increases worker mobility. (Companies don't have to hold on to employees they don't need or want and are free to hire ones they do)

      Lefties tend to see immagrant labor is exploitative of the worker, when in reality these people are simply more free to fill the labor demand as the market needs. This leads to growth and California's huge economy is proof. Restrictions on labor distort the market and harm workers because demand is not met.

      The far-right tends to see immigrant labor as labor being stolen from natives, when in fact the extra labor is needed to fill demand. If the native workforce was able to fill demand importing labor would not be necessary. Restrictions on labor distort the market and harm workers because demand is not met.

      California is not a lefty paradise/hellhole as many portray. It's a healthy centrist combination of pro-labor and pro-business that's made the region one of the largest economies in the world.

      • by sjames ( 1099 ) on Thursday August 30, 2018 @06:51PM (#57228288) Homepage Journal

        When I see job insecurity called "labor mobility", my BS meter goes up. You pegged it and then smoke started coming out!

        • There's no such thing as a lack of job insecurity. A lot of the jobs that people have today didn't exist 100 years ago and there are loads of jobs from 100 years ago that people aren't doing anymore. About the only time you see good job security is when someone has a monopoly and the rest of the market is captive to their business whether they like it or not. Since those are generally bad for consumers, we're going to have to accept that businesses will rise and fall and the labor force with them.

          You're
          • by sjames ( 1099 ) on Thursday August 30, 2018 @09:04PM (#57228902) Homepage Journal

            It wasn't that long ago when the common expectation was that you would graduate, then get a job you would be at until you retired. It wasn't that uncommon that jobs becoming obsolete would be vacated mostly through attrition or the workers would be retrained to fill another position at the same company. Many employers felt a duty to their loyal employees.

            That was the social contract.

            These days, it's not that uncommon to be laid off and end up doing the same job somewhere else.

            As long as the world won't let me plow my yard for cropland and go hunting in the neighborhood, it does, in fact, owe me an alternative.

            • by q_e_t ( 5104099 )
              I am not sure to what extent staying at a firm from cradle to gave was, apart from around 1945-80, outside agriculture. My father managed to stay in the same job and employer, but his father changed careers once, and his father had three separate careers. One of my father's brothers stayed with the same employer, his other two did not. My mother's father had three different major types of career including coal mining, brick laying and driving a train. My mother had jobs as diverse as being a seamstress, mak
              • by sjames ( 1099 )

                According to official figures today, 4.6 years i now the median time one spends at a job. That would suggest more than 8 jobs in a career.

                • by q_e_t ( 5104099 )

                  That's ~8 jobs, but not more than 8 careers.

                  from Australia (first relevant link I found but I forgot to copy the link - doh)

                  "More than half (57 per cent) of Aussies surveyed by job site SEEK have thrown caution to the wind and pursued a new path and one in five did so in the past 12 months.

                  Of people who have made a career change, most (38 per cent) have made just one but more than a quarter (29 per cent) have made two and 33 per cent have made three or more."

                  Those statistics seem a bit mixed and maybe contradictory without more detail, though. (With more detail there might be no contradiction).

            • As long as the world won't let me plow my yard for cropland and go hunting in the neighborhood, it does, in fact, owe me an alternative.

              The neighbor's kids probably aren't very good anyways.

      • by Ol Olsoc ( 1175323 ) on Thursday August 30, 2018 @07:45PM (#57228586)

        The far-right tends to see immigrant labor as labor being stolen from natives, when in fact the extra labor is needed to fill demand.

        This is called Schrödinger's Immigrant.

        Simultaneously doing nothing but collecting welfare and stealing your job at the same time.

        • The far-right tends to see immigrant labor as labor being stolen from natives, when in fact the extra labor is needed to fill demand.

          This is called Schrödinger's Immigrant.

          Simultaneously doing nothing but collecting welfare and stealing your job at the same time.

          Does anyone actually complain about immigrants stealing jobs these days? If memory serves, that was the talking point in the Clinton era, when the left was against illegal immigration because they thought it benefitted big corporations. Of course, now that immigration has become a social justice issue, their stance has completely flipped.

          • Does anyone actually complain about immigrants stealing jobs these days? If memory serves, that was the talking point in the Clinton era, when the left was against illegal immigration because they thought it benefitted big corporations. Of course, now that immigration has become a social justice issue, their stance has completely flipped.

            There is a lot of different opinions, but yes, some do https://www.usatoday.com/story... [usatoday.com]

            You don't hear as much about it these days because (I suspect) that as immigrants are kickd out, many of the low skilled american born low skilled citizens are kind of worried that the may be asked to take those jerbs that they bitched about imgrunts stealing. from them. Sometimes the worst thing you can get is what you asked for.

            The problems to me are twofold.

            Want to stop immigrant workers? Catch one, and impri

      • by cascadingstylesheet ( 140919 ) on Thursday August 30, 2018 @07:47PM (#57228596) Journal

        If the native workforce was able to fill demand importing labor would not be necessary.

        The native workforce is able to fill demand; many employers do not want to pay them American wages to do so.

        Imported people are used to artificially change the market and depress wages.

      • by rsilvergun ( 571051 ) on Friday August 31, 2018 @12:14AM (#57229408)
        I've never once seen a Union care if a worker quits. If anything the higher wages they bargain for benefit worker mobility. One of the key things that hurts worker mobility is that in the modern economy if you're an hourly worker your experience doesn't count for anything. When you quit you're starting over from scratch.

        Right now we're seeing something never before: near full employment but wages are declining. Economists have mostly agreed this is caused by two things: Low wage jobs replacing high wages ones (factory jobs replaced with fast food & Walmart) and the end of collective bargaining reducing workers ability to negotiate better wages. Notice I didn't use the "U" word there. Neither do they. There's been a non-stop anti-Union propaganda campaign from the mega corporations (which, let's be real, own the mass media). So much so that you're not generally allowed to say anything as simple as "Wages are down because one guy on his own can't negotiate the same rates as half a million workers".

        You don't have to take my word for it, just google what Walmart does everytime their employees try to Unionize. Or look at Disney, where the workers just got bumped to $15/hr because they organized. No Man is an Island. Collective bargaining works.
      • by Anonymous Coward

        You're emphasizing the macro economic forces of the labor market. Where this argument always falls apart is in the impersonal nature of macro economics to the very personal nature of a job to every one of the individual players, the laborer. The wealth of a region like California can also be attested to the growth of personal income through both housing and some savings and investment in opportunity, which requires stability for the individual players. Macroeconomic analysis is always weak when it glosse

        • This "nearness to Asia" theory of economic prosperity seems fairly unique. Have you any statistics that support this idea? Why has the rest of the American West coast not been similarly affected? Sure, the coasts are generally more prosperous than the rest of America, but California, Florida and New York have the greatest concentrations of wealth in the U.S.. The Asian influence in New York is especially pronounced but that example goes directly against your theory.

    • by hey! ( 33014 )

      Well, it can be both, provided that the political leadership doesn't have any principles other than getting elected.

    • California is a communist welfare state that suffocates business with regulation, taxes, and worker rights.

      California is a corporate welfare state that exploits workers to feed big business.

      Surely it has to "be" both, to justify continuing crisis response and ever increasing regulation?

      It's still Sinclair's jungle out there! Has to be ...

  • I think I first heard the term "Seattle Hundreds" about twenty years ago.

    • We've required 16 hour days for nearly two years since we hand-off to a team in India at night and have to attend scrum that's at the start of our day and the end of their day. Also, that means we're expected to be in the office on Sunday nights for their Monday mornings, but of course we can't leave early on Friday nights to compensate.

      I'd quit and try finding another job, but most of my friends in my field here in Seattle are also working long hours so I'm not confident of finding a better job.

      • Take a vacation to job search. I guarantee you'll find a job with much better conditions. It's pretty easy to get the sense of work hours during an interview as well.

        The reason bad work conditions exist is because people like yourself put up with them. You could also try forming a union but that's riskier than quitting.

  • Open borders! (Score:5, Insightful)

    by alternative_right ( 4678499 ) on Thursday August 30, 2018 @05:19PM (#57227850) Homepage Journal

    Industry loves an unending flow of people too inexperienced to know that they are being taken advantage of. It wants people age 25-35 that it can grind up, spit out, and roll right over. Instead of focusing on working smarter, our industry has become a mill into which we pour youngsters and out of which fall cynical outsiders.

    • Industry loves to be collectively anthropomorphized? Industry isn't a being. It doesn't have feelings. Your line certainly has a 'Hollywood oppressed masses' romance about it, but saying that all Industry (perhaps you mean capitalists?) is just out to exploit workers is like saying all black people are lazy. It is just a sloppy generalization that doesn't hold much water.

      Pick out specific bad actors and focus your attention there, ex: "Walmart is an exploitative company that deserves to burn in hell for
  • Fuck them back (Score:2, Insightful)

    You either learn how to gain the upper hand in negotiation, or you become some employer's bitch. It's that simple.

    If you have an in-demand skill, I recommend you learn how to use the word "no" until the people you're negotiating with tack on enough zeros. As sad as it is, it's a dog-eat-dog world, and you definitely want to be the dog with a full belly.

    If you don't have in-demand skills, you'd better get on it or you'll continue to get shit on.
    • So a person shouldn't care that their kids are starving while they are busy saying no? Good advice.
    • Re: (Score:2, Insightful)

      It seems that you're living in that Conservative SimplisticFantasyLand where workers can easily acquire new skills while at the same time living decently, raising a family, negotiating with bosses who actually give a bubbly fart about investing in their own employees....Keep reading that Ayn Rand crap, but it fails the Reality World test...BIGLY!
      • Re:Fuck them back (Score:5, Insightful)

        by barrywalker ( 1855110 ) on Thursday August 30, 2018 @06:28PM (#57228180)

        It seems that you're living in that Conservative SimplisticFantasyLand where workers can easily acquire new skills while at the same time living decently, raising a family, negotiating with bosses who actually give a bubbly fart about investing in their own employees....Keep reading that Ayn Rand crap, but it fails the Reality World test...BIGLY!

        Nope. Just thought and planned ahead. You do know that kids and families are preventable, right?

        • Re: (Score:3, Insightful)

          ..says the person without a biological clock.
        • In other words, the rich give the poor the choice between either breeding or survive, presentig it as if it was part of a fair game, or part of nature. How smart they are, learning from the turkish mistake with the armanians. Instead of making a group of people extinct directly, just prevent them from breeding.

  • by ITRambo ( 1467509 ) on Thursday August 30, 2018 @05:26PM (#57227888)
    I don't see an Uber or Lyft driver as having a miserable life. A coal miner breathing in toxic dust has a miserable life. Diamond mine workers in Africa have a miserable life. Chinese factories workers outside of the biggest areas have a miserable life. Uber drivers can always find a new job. There's no forced labor here, in spite of low wages and long hours.
    • by sjames ( 1099 )

      You apparently flunked reality. Must have job to live. Only job available is crappy gig economy job. So YES, forced to be an Uber driver.

      • You apparently flunked reality. Must have job to live.

        So those are zombies I see hanging on the corners?

        Granted, some of them maybe ...

        • by sjames ( 1099 )

          Am I just imagining the police that run them off because it's not really legal to be homeless? Have you SEEN the death rate among the homeless as compared to the general population?

  • - living five adults to a two room apartment

    - being told you are constructing utopia while the system crumbles around you

    — Anton Troynikov (@atroyn) July 5, 2018 [twitter.com]

  • Not surprising to me (Score:5, Interesting)

    by GerryGilmore ( 663905 ) on Thursday August 30, 2018 @06:01PM (#57228042)
    I joined the industry in 1976, starting as a depot-level tech at Data General gate-banging CPU boards, disk controller boards, etc. that had been swapped out in the field. At that time, every single part of every computer (except the core stack on core memory cards) was made here in America. Everything from the castings for the disk drive frames, through the manufacture and chip-stuffing of every single PCB used, to the special lights used on some disks for positioning to the discrete components (resistors, caps, etc).....EVERYTHING was made here, and those businesses - and associated suppliers - employed millions of people.
    Today, other than some special mil-spec companies, ZERO electronics are made here. THIS is what brought us to this point: that either you're an app-appy developer or a low-tier drone with no room to grow. Basically, we've squeezed the piss out of the entire industry's middle with most of the rewards going to the Squillionaires and the rest of us left fighting over - Yes! As Pelosi said - "the crumbs".
    I'm glad I got the chance to ride the wave long enough, but the tide has been going out for decades.
    • Yes, you are right, we should have invested in hi-tech manufacturing so we could have a few companies here that run on razor thing margins, employ a scant few people at high salaries, and are rapidly replacing every step of the manufacturing process with automated machinery. We would be far better off, indeed.

      Look, it doesn't matter what you are manufacturing or what part of the world you are in. Manual labor jobs are 20th century jobs, and its all going away.
    • Today, other than some special mil-spec companies, ZERO electronics are made here.

      Not a lot that you see, but certainly not zero. At my previous job, the product was largely made in the USA. The circuit boards were made there (I believe--that was subcontracted), the boards were populated, the cases finished and assembled and then everything packaged up into the final packaging all in Texas.

      I visited the factory of course and they seemed to be making a fair amount of stuff. What doesn't get done is the huge

  • by guygo ( 894298 ) on Thursday August 30, 2018 @07:10PM (#57228398)
    The Grand Minds hsve long made the lion's share while crumbs go to the people who actually do the work. It is not exclusive to nor invented by Silicon Valley. Who knows the names of the team that put together the first Mazda? But we all know the name Edison.
  • "It relies on a bunch of people who don't have an alternative."

    Surely that's not binary? There's a continuum?

    Surely it's also not new?

  • was driving for them is taking out a pay day loan against your car. I know people who do this. Hyman or whatever is dead on.

    Most people aren't doing this because they want to, they do it because they have no other options and are lucky enough to have a car (often one their parents bought them).

  • Actual tech employees are treated much better in Sillicon Valley than tech or non tech employees anywhere else. Granted you have to be not stupid enough to work for Apple. But in most places, there are smart managers who care more about your long term potential than making you slog on a given weekend. As for Uber drivers, you may want to consider their options before Uber. Why are they doing that job if they have something better lined up?

  • by cpm99352 ( 939350 ) on Friday August 31, 2018 @12:34AM (#57229446)
    "This week, State Assembly Republican Leader Chad Mayes called poverty California’s No. 1 priority during a forum of legislative leaders in Sacramento. Mayes, who represents parts of San Bernardino and Riverside counties, claimed the state’s poverty rate is higher than any state in the nation when considering factors such as cost-of-living."

    We decided to fact-check whether the report Mayes cited really shows that California has the highest poverty rate in the nation. [politifact.com]

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