Democratic Bernie Sanders and Republican Donald Trump are both tapping into the view by many Americans that the economy is in bad shape and their financial futures are uncertain.
This despite the fact that the U.S. economy is doing quite well, at least according to government statistics.
GDP is in the 2%-3% range, which is pretty good. Unemployment is low, inflation is low, gas prices are low, interest rates are low and job growth solid.
But, of course, the overall economy numbers are hiding lot of problems. The big ones being stagnant wages, growing income-inequality, increased income volatility and the hollowing out of middle income jobs.
These factors are resulting in many Americans feeling very uncertain economically and worried about their financial future.
FiveThirtyEight's The Economy is Better - Why Don't Voters Believe It covers this topic from the political point of view. Key quote:
Americans are pessimistic about the economy because, for many of them, the economy hasn’t gotten better. Unemployment is down, but incomes are flat. Millions of Americans left the labor force in the recession and haven’t returned. Millions more are stuck in low-wage jobs or are working part time because they can't find full-time work.
The article goes on to say this is why Sanders and Trump are doing so well.
So what's this got to do with the gig economy?
Much like the appeal of Trump and Sanders, the growing interest in working in the gig economy is driven by economic fear and uncertainty - and the very real need by many to supplement their income with part-time gig work.
Two recent studies strongly show this.
Studies from Intuit (we partnered with them on this study) and JP Morgan Chase's Research Institute both show people are turning to gig work and on-demand platforms to supplement their income due to economic dislocation, job loss or simply to make ends meet.
Fear and uncertainty are powerful emotions and for many Americans based on all too real economic problems. Turning to the gig economy is one way they are dealing with them.
See our Economic Uncertainty section for more on this important topic.
Comments