The Economic System Depicted by the Laws
The economic system currently shows a combination of capitalist and socialist characteristics. On the one hand, current laws are capitalistic; they allow companies to compete against one another in the market and establish their prices, such as the Federal Trade Commission Act (Smith, 2015). Here, capitalistic ideology prevails, as the government’s participation is minimal, and more value is placed on the market.
The Laws That Support or Limit Uber’s Operations
In the United States, Uber’s drivers are covered as contractors under the Fair Labor Standards Act (FLSA), which does not require the company to pay any benefits (Smith, 2015). On the other hand, according to FLSA, full-time workers are usually entitled to benefits, and their rights are protected under several laws, which can be viewed as a socialist principle (Smith, 2015). The government can interfere in the structure of companies and demand them to change their policies if incidents occur, which is consistent with the socialist economic system of government participation and social support.
Currently, not many laws address independent contractor companies like Uber. Most labor laws do not apply to Uber workers, as they cannot be considered employees. However, rules that limit some of the company operations apply to the safety of vehicles and workers’ qualifications. For example, all drivers must have a driver’s license, and their cars should be registered. In some states, Uber is further restricted, as these regions require background checks for drivers (Smith, 2015).
Additional lawsuits about the legality of using contractors instead of employees are in the process of being resolved. In other locations, laws that support Uber separate the company into a category of ridesharing businesses that are not linked to and do not compete with taxis (Smith, 2015). As a result, these states allow Uber and its direct competitors to self-regulate and avoid being sued for not providing drivers with benefits.
The Impact of Findings on Uber
Depending on the location, laws may be a drawback or an advantage for Uber. In states where Uber is officially considered a ridesharing company with separate regulations, the business is at a lower risk of being sued by drivers. In this case, the company may grow in the market and increase its presence, thus being more potent than its direct competition and taxi services. Uber’s performance can suffer financial losses in other areas with more laws.
The case in California requiring Uber to pay one driver for her expenses demonstrates how a more community-focused economic system can protect workers regardless of their status in the company (Steinmetz, 2015). Additional laws and socialistic principles protect drivers and control the performance of such businesses. At the same time, capitalistic parts of the economy, such as the focus on increasing profits and competition, encourage Uber to seek opportunities for cheap labor.
A Moral Position Regarding Uber
I believe that Uber’s current exploitation of the gig economy is morally wrong because the company does not adequately protect workers and clients. According to the philosophy of utilitarianism, morally good actions maximize the happiness of society and deliver positive results to as many people as possible (Fieser, 2015). In the case of Uber, the business fails to provide support for its drivers, declining to consider them employees.
Apart from that, the influence of Uber creates new companies that follow its example of worker exploitation. As a result, many of the population have a low quality of life and no access to healthcare, retirement savings, and other supports. Furthermore, Uber clients also suffer – although they may access the service at low prices, they are also entirely dependent on how Uber prices its rides. Therefore, customers are at risk of these services becoming inaccessible due to Uber’s market domination.
References
Fieser, J. (2015). Introduction to business ethics (2nd ed.). ZovioInc.
Smith, J. W. (2015). The Uber-all economy. The Independent Review, 20(3), 383-390. Web.
Steinmetz, K. (2015). Why the California ruling on Uber should frighten the sharing economy. Time. Web.
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