Business

Politicians need to set general rules for digital markets


As the great American baseball player Yogi Berra once said, “When you approach a fork in the road, take it.” We are now in the digital economy of the 21st century. Liberal democracies everywhere are playing a regulatory breakthrough with platform monopolies trying to enforce new privacy, tax, and antitrust rules.

Cost throughout that intangible assets such as technology, software, and patents, expand as the workforce shrinks. Covid-19 only accelerated this trend. Markets are supposed to enrich the society. But in the age of control capitalism, they downplay it by concentrating all gains in the hands of the very few who can best protect data and intellectual property.

The EC EC countries, of course, need to push for things like a minimum global corporate tax, antitrust action, and the basics of digital commerce. At the same time, we need to rebalance the market system itself so that players on both sides of the deal have equal access to the information, the common understanding of the buyer, the general set of rules. This is true of Amazon buyers, sellers, Uber drivers, riders, advertisers, and websites that they want to reach through Google.

We do not have any of that at this time. For example, Uber may charge you և different prices for the ride, even if the drivers themselves are unable to use their own data in ways that are beneficial to them. This is what’s so insidious about the rise of a network-based intangible economy. This leads to an imbalance of power that offsets the usual benefits of capitalism.

This is not new. Every time there is a new transformative technology, from rail to telephone, we see an increase in the concentration of economic power.

That is why I am beginning to think that the fastest transformational action for politicians will be what they did in the previous turmoil. Instead of taking on individual businesses at once, they just need to set new ground rules for how markets should operate.

Think of the “wild cat” era of 1816-63 banking, in which individual US financial institutions issued their own currency. Eventually, the US government forced everyone to trade in dollars. The public sector also determined which side of the road people should walk on when the highways widened, how the reservoirs would be coordinated to supply clean water, and so on.

Now think about sharing a walk today. Uber has its own set of standards, fees, policies, as Lyft does, և any number of small providers (պարզապես it’s just stocks; every area of ​​performance is the same).

Consumers are generally subject to individual pricing, և employees do not have the opportunity to express their own value by offering their work in real time to different employers through the same platform.

But imagine if the government simply sets the rules for platform concessions in places like swapping, or renting bicycles, or splitting the house, or any other band, then let the private sector compete for a private equity.

You can have different private sector companies involved nationally. Cisco, Microsoft, Google or Amazon can compete for the technological backbone of such a system. But retailers, city authorities or even local entrepreneurs can be the store leaders. Everyone will have access to the same data-algorithms, getting rid of information asymmetry, which is contradictory for really efficient, fair markets. Adam Smith is 101.

Aspects of this idea have been pushed for some time by various technologists and policy makers. But recently it was best expressed by British political businessman Wingham Rowan, head of the non-profit Modern Modern Markets for All, who wants to turn the band’s work into a public good. His goal is that instead of individual companies making the most profit in silos, the public sector can simply lay the groundwork for group work on how it should work, how much companies should pay, and then the private sector should allow it to do its job.

Mark Contemporary Markets for All Ideas, which won the U.S. Mayor’s Conference Award for Best Economic Development Initiative 2018, received a powerful test during the epidemic when Long Beach, California, used them to overcome job mismatch. Suddenly there were too many home care workers and enough teachers.

The city was able to bring a virtual program of 10 different companies Concern working platform to help close the gap while increasing wages. The minimum wage for child care, for example, was about $ 22 an hour during the crisis, while the national average was $ 12.24.

Hams were looking back to make sure employers paid people who worked full time as decent employees. The data on the platform was mobile, which meant that employees could share it with their preferred employer.

City officials hope to expand their efforts to “move to other areas, such as construction and hospitality, using the idea of ​​an orchestra as an inward race.” We need more of these markets wherever there is a power imbalance in the digital world. It is a very big arena.

rana.foroohar@ft.com:



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