WASHINGTON, DC - As part of its ongoing Disrupter Series, the House Commerce, Manufacturing, and Trade Subcommittee, chaired by Rep. Michael C. Burgess, M.D. (R-TX), today reviewed the sharing economy and how its growth is transforming the U.S. economy. Members today examined issues impacting the sharing economy from state and local regulations, liability insurance, federal regulations, competition with incumbent industries, and the appropriate role for the federal government moving forward.
“The sharing economy is providing a path back into the labor force for many and yielding countless benefits for consumers across the country. Making sure these benefits for consumers and job creators - including the self-employed - continue is one of the many reasons why I fight for smaller government that promotes innovation," said Burgess. “There should be some limited government oversight, particularly where safety is needed. And firms should be thinking about privacy and cybersecurity from the outset, lest they invite the very regulation they would rather avoid."
“One of the most intriguing aspects of this model is that it is not tied to any particular industry. The press regularly highlights the disruption in the lodging and transportation sectors but there is innovation in every facet of the U.S. economy," added full committee Chairman Fred Upton (R-MI). “As with any developing marketplace, we must recognize the risk of stifling innovation with reactionary regulatory measures. At a time when jobs are still hard to find, and balancing the budget is a challenge, we should not risk job creation with hasty calls to regulate."
Jonathan Lieber, Chief Economist at Thumbtack explained how the sharing economy has and will continue to change the way consumers find providers of goods and services. “The common thread among all of these platforms is direct exchange between individuals that wasn’t possible without technology enabling the transaction," said Lieber. “Because technology has lowered the transaction costs of finding a driver, hiring a lawn care expert, or delivering the groceries, we should expect these direct exchanges between individuals to become a more common form of commercial interaction in coming years."
Luceele Smith described her experience as a driver with Uber and how the freedom to work when she wants has benefited her life. “With other jobs, the only way to earn more money is to take another job or get a promotion - which can take years. That freedom removes a lot of stress from your life. And that freedom is priceless. Knowing you can log in anytime and make money - that’s incredible. It’s unmatched," said Smith.
Michael Beckermen, President and CEO of the Internet Association explained how the sharing economy is improving new and old businesses for consumers. “The benefits to U.S. consumers from the sharing economy are real and growing. These benefits include increased competition, lower prices, higher quality, and increased consumer choice for all consumers, even those consumers who do not participate in the sharing economy," said Beckerman.
“The rise of the sharing economy is part of this fundamental shift to increased self-employment and it represents the next iteration of reduced friction between supply and demand in the labor market," added Alex Chriss, Vice President and General Manager Intuit. “These new services, combined with opportunities for public-private partnership on solutions, will ultimately create an environment that will encourage the long-term growth and success of the self-employed."
“We should be highly skeptical of interventions that snatch away new conveniences and measurable benefits for consumers. Sharing platforms are inherently good at providing reputation feedback loops," concluded Burgess. “As we look at any disruptor, we really need to ask is regulation needed or is someone just scared of a change to the status quo?" Related Items
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