On-demand Economy | Working Stiffed

Obamacare Has Sentenced Me to Death

Yes, it’s true. Obamacare has sentenced me to death…and financial destitution. I feel it’s important to address this issue on this, the last day we are told to register for Obamacare without incurring an unconstitutional tax penalty.

I have been without health insurance, which I cannot afford, for a year-and-a-half and I live in a state that does not extend Medicaid to people in my position. As a result, I am one serious disease or accident away from certain death.

After dutifully paying taxes for close to 40 years, helping to send other people’s kids to school (I don’t have kids) and funding food stamps and benefits for thousands of people, my government is repaying me by turning its back on me during my hour of need…and penalizing me for my new-found destitution, to boot.

How did this happen? I am a 52-year-old woman who was last employed in a full-time position with benefits four years ago; I was part of a group purge after my company was acquired by a competitor. This scenario is familiar to most of you, I’m sure. I thought I’d find another job with benefits easily, but I was wrong.

As The New York Times recently reported, women over 50 account for half of all long-term unemployed people. After remaining steadily employed in good, white collar lower management positions for more than 30 years, I was suddenly an unwilling participant in the trendy new gig economy out of necessity.

For this I owe a big thanks to Bill Clinton and NAFTA, which destroyed the American middle class by allowing companies to ship jobs overseas and import H1-B visa “guest workers.” Now, many of us find that we’re unemployable more than 20 years before we can collect a pension (if we even have one) or Social Security (if it will still exist by then).

My new reality involves going months without work, or “contracts,” and even when I do get a temporary contract position, my “clients” periodically cut my hours without warning. As a result, I made less than $10k last year.

Needless to say, I can’t afford the so-called affordable insurance Obama promised. According to the Affordable Care Act (ACA) health care exchange marketplace, I’d need to pay $550 a month for a policy with an $8,000 deductible. And what good is a subsidy when you go months without any income?

A low-cost, pre-Obamacare catastrophic insurance policy would be helpful right about now. Unfortunately, Obamacare-less forces me to buy an overpriced policy with a high deductible, so that I can share the privilege of paying for some dude’s Viagra prescription and pediatric dental insurance (like I said, I don’t have kids).

To make things worse, I’m about to get hit with the Obamacare penalty…and this is on top having to drain my savings and take hardship withdrawals from my 401(k) (which I am also about to be unfairly penalized for) just to survive in our “new normal” transient, gig economy that mainstream media finds so hip and trendy.

I’ve decided that if something happens to me health-wise, I’m just going to die, because if I am hospitalized, I stand to lose my home and what little I have left, so why bother sticking around?

If you like Obamacare, it’s probably because you don’t need it

I am so tired of brainwashed Obamacare defenders crowing about the 12 million Americans who couldn’t get insurance before now having coverage. Frankly, in a country of 330 million people where close to 100 million are out of the workforce (many not by choice), that’s a drop in the uninsured bucket, so bragging is totally uncalled for. Maybe they’re promoting this “success” because they know that math-challenged Common Core students are easily impressed by any number you throw at them.

Obamacare supporters are also quick to blame states that don’t extend Medicaid. Why? Should citizens of states that aren’t on board with Obamacare be penalized? There wasn’t a Medicaid referendum in any state that I am aware of.

And, if Obamacare is supposed to mandate affordable insurance for all, why didn’t it nationalize Medicaid? At the very least, it should exempt those of us who live in Medicaid-deprived states from Obamacare.

And then there’s the pre-existing condition clause. Sorry, Obamacare defenders, but I’m not down with being stuck with the rest of this ugly baby just for that one benefit. Besides, a single-payer health care solution would take care of pre-existing conditions just as effectively. As it stands, the insurance companies are offsetting their pre-existing condition “losses” with double-digit rate increases each year.

Not surprisingly, I find that the strongest supporters of this crony capitalist screw job are people who have employer-paid health insurance or at least make or have enough money to overpay for their insurance.

I know a couple of people who used to sing the praises of Obamacare….until they lost their jobs, were forced to join the gig economy, and had to actually rely on Obamacare for coverage. Needless to say, both have now joined the repeal Obamacare bandwagon.

It’s unconstitutional

The lie Obama sold us (among many) when he was promoting this travesty was access and affordability…and, of course, we couldn’t keep our doctors, after all (not that we can afford them now anyway, so I suppose this is a moot point for those of us who inhabit the Obamacare penal colony). I admit that I bought the spin. I even voted for the lying clown. What we got instead was a gun to our heads forcing us to purchase an overpriced product from PRIVATE companies or face hefty, escalating tax penalties.

No income limits were set; whether you make $10k (or less) or $100k a year, if you don’t buy insurance, you get taxed. Seriously? How is that legal? Or fair? First of all, people who make less than $30k shouldn’t pay ANY taxes, never mind have tax penalties imposed upon them.

And if Obama was so hell-bent on insuring us, why didn’t he mandate maximum premium amounts that insurers could charge? Say, $200 a month? Let’s call Obamacare what it is: a blank corporate welfare check to the insurance companies.

Not a peep from presidential candidates

NOT ONE presidential candidate has addressed this travesty. Several running for president are sitting members of Congress. They’ve taken a two year paid vacation on our tax payer dime to attend fundraisers and campaign for an office most don’t stand a chance of winning. Must be nice.

NOT ONE of them (including our socialist man of the people, Bernie Sanders) can be bothered to spare a moment to introduce legislation NOW to at least waive the “Cadillac tax” penalty. No, instead of nuking the toxic provisions of Obamacare, Congressional members voted to repeal the whole thing, knowing that the president would veto the resolution….pure theater…or political masturbation.

As a member of Congress you have a unique opportunity to demonstrate your leadership abilities through legislation, and there’s no time like the present. That’s probably the ONLY advantage you have over Donald Trump. Talk is cheap. So, why not lead by example? Because, frankly, too many of us don’t have a year to wait for action…nor do we trust empty campaign promises.

Speaking of leading by example, I invite Obamacare defenders to show me how great it is by contributing funds to pay my Obamacare tax penalty and/or my monthly insurance premiums. On second thought, the way our economy is going, maybe you should hang on to your money…you’ll probably need it to pay for your own “affordable” Obamacare insurance someday.

Being a freelancer these days has a lot of perks: you make your own work schedule and you can work from the comfort of your home, thus you can avoid messy office politics, getting stuck in commuter traffic and blowing your ever-shrinking “gig economy” earnings on a “business casual” wardrobe and workplace lunches.

Sure, there are some challenges to freelancing, like convincing clients that your rates are reasonable while they plead poverty or hide behind budget cuts, or getting them to pay you on time (or at all), or having to diplomatically push back on their requests for additional revisions or input that they don’t feel they should have to pay extra for.

Still, the biggest challenge I’ve found as a freelancer is my lack of psychic ability.

If you’re a freelancer, you may have noticed that your clients tend to fall into two categories:

Small businesses that need to hire you because they don’t have the in-house talent to do what you do (e.g., marketing, Web development, etc.).

Middle managers in mid- to large-size companies that have downsized their marketing or IT departments into oblivion who need you to help them get the work done (without having to offer you a steady salary or benefits).

Champagne Dreams on a Spam Budget

Small business clients don’t like budgeting for anything outside of their company’s inventory, so when they reach the painful conclusion that they need to hire you to help increase their brand’s visibility, your biggest challenge is usually managing their expectations.

Even if you find yourself pricing their projects on the low end of your rate scale and they can only offer you a limited amount of work, some clients will expect your handiwork to deliver astounding results in record time.

This is when the fun starts. With some small business clients, you can expect one or both of the following outcomes:

(a) You will spend the next three months asking for your money.

(b) Your client will continue to ask/expect you to do more work outside of the scope of your original agreement until they feel they got an adequate return on their investment. Some of us foolishly keep feeding this beast in the hope that someday these clients will actually pay us for the original work.

If you were psychic, you could avoid a lot of aggravation by knowing ahead of time who won’t pay you or who will likely run you into the ground making you “earn” your money.

I May Not Know What I Want…But I Know What I Don’t Want

Sometimes it’s easier to work with mid- or large-size businesses, because the manager who hires you is more likely to process your invoice…unless they are so overworked that they keep forgetting to do so (which happens more often than is acceptable). Still, as long as they have the budget, you’re not likely to get any push-back or experience unreasonable haggling.

The biggest challenge of freelancing for larger companies is that the mid-level managers who tend to hire you are so overworked that even though they desperately need your help, they often don’t have the time to provide you with what you need to do the job right.

As their hired gun, you’re priority No. 59 on their long to-do lists…way below assisting their VPs and other important business stakeholders, planning the company United Way drive, booking their vacations, arranging their bimonthly date nights with their spouses, finding babysitters for their children or getting their dogs groomed.

Sometimes these clients don’t even know what they’re asking for, while other times all they know is what they don’t want. And woe to the freelancer who receives limited guidance and inadvertently submits what they don’t want.

These clients expect you to have the skill to write or develop exactly what they would, if they only had the time. So what if they’ve had months or years to become well-acquainted with their company’s business objectives, and to attend company-sponsored training and meetings on a regular basis when you haven’t? You oughta know what they’re looking for, anyway, dammit!

The Phantom Lucrative Project

Another potential pitfall of being hired by a large company is one I call “the phantom lucrative project.” A typical scenario involves you blocking out weeks to do a job after being hired by a large, reputable company. Sometimes, you’ll be so happy you got the gig that you’ll celebrate by going on a shopping spree for laptops, patio furniture…or food, if things have been tight for you financially of late.

Then, you hear nothing more from them. When you contact your client, you are given excuses as to why the project is being delayed (e.g., they were on vacation, the project still needs approvals that your client wasn’t aware weren’t in place when he or she hired you, etc.).

The fact that you turned down smaller projects to work on their mega-project doesn’t resonate with them. After all, these people get paid even when they’re working on their tans in Cabo.

Sometimes, if you’re really lucky, you’ll wait for weeks to start the project only to be told that it’s been canceled (again, for any number of reasons from budget cuts, to the need to move resources to a more important project, or the project has been mothballed so long it’s actually now irrelevant…or the sponsor was terminated).

Having the psychic intuition to avoid these phantom projects would help keep you that much further away from financial ruin.

Having a pay-or-play deal in place would also help. Unfortunately, unless you have a waiting list of clients or you’re regularly profiled by the top trade media in your field, that ship won’t sail. Your prospective client will just move on to another freelancer who will agree to grant the company the option of leaving them hanging without compensation. Ah, the joys of working in the “gig economy.”

Since I wasn’t born with psychic ability, I’ve decided that the best gift I can receive this Christmas is a crystal ball that can offset my psychic shortcomings…or better yet, a winning mega-jackpot lottery ticket that would get me out from under the freelancer-client bus for good.

Anyone who is surprised by the recent Pew Research Center report that the American middle class is “losing ground” hasn’t been paying attention.

Even Helen Keller could have seen this coming. According to the report, the rich keep getting obscenely richer. You don’t say! Another shocker: more than a quarter of adult Americans 65 or older improved their bottom lines (26.7 percent), while many of the rest of us have been bleeding out financially.

Ah, yes, the postwar “me-me-me generation” of baby boomers; the generation that was in charge in the ‘90s. Some of their notable achievements:

Supporting job-busting “trade” agreements (NAFTA, CAFTA, GATT, et al.), which laid the groundwork for the even more suicidal TPP
They converted the personal-sounding term “personnel” into the more disposable-sounding “human resources”…morphed “hiring” into “onboarding” … and turned “firing” into the sterile “offboarding” or murderous “terminating”
And now, many won’t retire, even when they are comfortable financially, making an already tight labor market even less accessible to the rest of us

Me-me-me to the end.

The study also showed that from 1970-2015, adult blacks saw a larger increase in income than any other racial or ethnic group (up 11.2 percent), and blacks were also the only group not to experience a decline in their lower-income share. See? Sometimes black lives do matter!

Married people with or without children at home also fared much better than single people. That makes sense, since it now takes two salaries to equal half of what one salary was worth 10 years ago.

Pew defines middle class Americans as adults whose annual income is double to two-thirds of the national median wage. In 1971, 61 percent of adult Americans enjoyed middle class status; that rate has plunged to only 50 percent now. The number of high income American adults spiked from 14 percent to 21 percent, and the number of low income households also increased (from 25 percent to 29 percent).

All in all, the study further validates Ross Perot’s “giant sucking sound” prediction. In 1992, he warned that America’s labor market would be destroyed if NAFTA passed; how right he was. The report charts the decline of our middle class beginning in the early ‘90s and accelerating considerably in the ‘00s.

By then, NAFTA was really kicking into gear and virtually all of our manufacturing jobs were exported overseas. I just hope that Chinese factory workers can take a break from making our iPhones every once in a while to make enough respirators for the citizens of Beijing. Sure, let’s cry for the polar bears while our captains of industry suffocate the poor Chinese people with low-cost, unregulated manufacturing and limited breathable air.

With our manufacturing gone, our labor market now consists primarily of very high- or very low-skilled occupations.

But, wait, there’s more!

In recent years, our crooked Congressional “representatives” continued to beat the walking dead middle class by boosting the number of tech “guest” work visas granted to their corporate sponsors. U.S. workers in high-skilled positions are now routinely replaced by foreign “guests” who are paid much less.

Congress also has allowed an endless parade of illegal aliens to cross our open boarder and they are now calling for us to import Syrian refugees to fill the low-skilled jobs that Americans supposed won’t do. It’s clear that the psychopaths running our government are fast-tracking us to Third World status. And…we’re…letting…them. Why?

Each holiday season, retailers bemoan the fact that people aren’t spending as much as they used to. Well, if we don’t have jobs, or the jobs we have pay less they used to, or we are “gig” employees who don’t know if or when we’ll see another paycheck, then the odds are pretty good that we’re not going to have a lot of Benjamins…or bitcoins…or any type of digital currency…to slide across your registers or online shopping carts.

In my last post, I described how today’s U.S. worker is trapped in an environment of economic cannibalism; the Pew study proves it.

Pew. Something sure does stink around here.

Merriam-Webster defines the word freelance as follows:

noun free·lance \ˈfrē-ˌlan(t)s\

usually free lance : a mercenary soldier especially of the Middle Ages : condottiere
a person who acts independently without being affiliated with or authorized by an organization
a person who pursues a profession without a long-term commitment to any one employer

That definition may still apply to some professions, like the aforementioned mercenaries, but a twenty-first century freelance writer or designer would probably define the word as follows:

A creative entrepreneur who pursues their profession without a long-term commitment to any one employer: frequently required to do additional work for free…often stands a better chance of being lanced by a mercenary soldier of the Middle Ages than being paid a living wage.

Of course, we don’t start out feeling that way. When I was exiled from my corporate management perch after my company was acquired by a competitor a couple of years ago, I didn’t panic.

I set up an LLC and decided that my displacement was a blessing; it was finally time for me to reap the substantial financial benefits that awaited someone with my years of communications and marketing experience. I was ready to take those recession lemons and squeeze them into entrepreneurial lemonade. The sky was the limit!

I soon realized that the sky had nothing to do with the limit; “how low can you go?” is actually the measured limit. Look, I’m fine with negotiating a fair freelance or consultant rate, but when you’re routinely offered less money than what Apple sweatshop workers in China earn, it’s hard to feel that optimistic.

Tales from the Script

Aside from having to compete with the bargain-basement freelancers found on Upwork (the cut-rate lovechild of Elance and oDesk) and the like, I have had to deal with the usual client nightmares:

* Clients that blow their substantial website redesign budget on an agency that knows nothing about creating optimized content…and then being asked to fix the mess, despite their now limited funds.

* Entrepreneurs who want to offer me an “exciting” opportunity to get in on the ground floor of their start-up…at a fraction of my rate (one guy even wanted me to work for free) with vague promises of a financial payoff down the road.

* “Prospective clients” who are really just picking your brain, so they can figure out how do the work themselves.

* Clients who hire you for one job and then casually ask you to “look over” something else, if “you’re not too busy.”

* Clients who want to barter for services. (As much as I would like a past life regression reading, it’s not going to pay my bills, unfortunately).

*Corporate clients who hire you for a sizable project with an aggressive deadline only to delay getting the project off the ground…and/or keep you hanging on for weeks only to kill the project down the road.

This can be a financially deadly situation, especially when, in your excitement at landing a profitable gig, you turn down other work to handle the promised lucrative workload.

* Then there are the “resume/portfolio builder” clients who offer the “opportunity” to work for little or no money with the promise that the work you do for them now will help you earn more money down the road.

Fortunately, my mature age and lengthy resume has protected me from these predators (for now); they typically prey on younger freelancers. Word to the wise: falling for this ruse too often will guarantee that you’ll be sleeping on your parents’ sofa well into middle age.

Pay or Play?

There isn’t an experienced freelancer or consultant alive who hasn’t been jerked around when it comes to payment.

Small businesses sometimes take a while to pay, especially when they’re having a bad month or quarter. While that can be frustrating, there’s really no excuse for corporate decision-makers who park your invoice under their donut or morning coffee; after all, these people would shriek like frightened children if their biweekly paycheck wasn’t direct-deposited into their bank accounts on time, so why do they think it’s okay to delay your payday?

We freelancers typically love what we do and take great pride in the work we create for our clients. Still, just because we’re passionate about our work doesn’t mean we expect to eke out an “all-work-no-pay” existence. Do unto freelancers as you would have them do unto you.

What do you think fellow freelance working stiffs? How would you define your profession, and what funny or frustrating experiences have you endured?

Uber is a German word that means above the rest. It is also the apt name of a popular mobile app transportation network company. For those of us trying to survive in the growing on-demand economy promoted by Uber, images of goose-stepping armies of gig economy fascists readily spring to mind. And my futurist crystal ball tells me that it’s in our best interest to stay out from under their technocratic jackboots.

Uber has attracted a lot of attention recently, both positive and negative, for proudly trying to redefine full-time employees as contractors.

Their business model isn’t new; Corporate America has been embracing transient labor in order to avoid paying employee benefits and related corporate taxes for some years now.

Unlike Uber, they don’t brag about it, though. After all, displacing full-time employees for contractors, many of them overseas or foreign nationals here on visas, still doesn’t play well in Peoria; just ask Disney.

No, Uber is proudly spinning its business model as one that entrepreneurial thought leaders are embracing in order to survive and thrive in our brave new world. What’s not to love? Their drivers are business partners, not employees.

Many millennials cheer Uber’s entrepreneurial passion, especially those who earn their bitcoins by sucking on a tech company’s teat. They feel we need to be free agents in order to innovate, or we deserve to disintegrate. How else can you become a mini-Zuckerberg and invent an app that Google, or even Zuckerberg himself, will buy from you for billions?

I admire their spunk, but as someone who’s navigated through a few boom and bust economies, this business model looks a lot like a sweat shop in silicon clothing.

We can’t be too surprised by the rise of the on-demand economy and companies like Uber (or Uberettes, as I like to call Uber-like startups). After all, we have become increasingly impatient consumers; millennials and boomers alike want instant results and gratification: we want a cab NOW; we want our Web-purchased goods NOW; we want everything NOW.

The more affluent among us don’t even mind Uber’s other ingenious invention, “surge pricing.” It’s not enough that Uber doesn’t want to pay for its drivers’ FICA, Medicare, workers’ comp and health insurance; no, they also favor a pricing plan designed to bleed as much money out of their customers as possible, even during terrorist attacks.

Surge pricing sticker shock isn’t for the faint of heart or wallet. Last Halloween, a Denver man was changed $539 for an 18-mile ride that typically costs around $40. Uber even spiked rates in Sydney, Australia when a local café was under siege last Christmas. Ho-ho-no! Stories like these pop up in the news every day.

Uber’s CEO, Travis Kalanick, defends his business model by saying that if he’s forced to provide employee benefits or charge reasonable cab fares, his company won’t survive.

What if all CEOs felt as Kalanick and collectively decided to make all U.S. workers 1099 contractors? A cab driver is one thing, but would you feel safe leaving your child at a day care center staffed by contractors who could come and go as they please without a background check?

And what role, if any, has our over-reliance on a transient labor force played in the recent rash of cyber security breaches? Is it unreasonable to think that an underpaid, often offshore, contractor would sell your personal info to supplement his or her income?

Wouldn’t an employee who has a vested financial interest in keeping their job be more reliable in handling your customer’s sensitive information? I guess it’s easier to publicly blame North Korea or China for all such breaches; gotta keep those admin costs down and the shareholders happy, you know?

And then there are the other lifestyle perks that come with being part of the non-gig economy: credit. How many Uber drivers can qualify for a mortgage, a car loan, or even a credit card?

Banks aren’t adjusting their requirements to accommodate the on-demand economy. They still want evidence of secure employment and if you don’t have a steady (hopefully, fat) paycheck deposited biweekly into your account, you won’t find a lot of love or credit at Wells Fargo or Citibank, even if you’ve been driving for Uber for years.

If we allow Uber and its ilk to shift the labor force Overton Window and acclimate us to being part of an on-demand workforce, we’re building a seamless bridge to an even more dire reality: robots and AI (artificial intelligence).

Uber’s Kalanick admitted last year that he can’t wait to dump his “business partner” drivers as soon as driverless cars are more reliable.

He’s not alone. Notice how companies worldwide are gradually introducing robots into the workforce? Lowe’s publicly tested a multilingual sales assistant robot last year and a five-star hotel staffed entirely by robots just opened in Japan. All hail the coming technocracy!

The popular narrative is that AI is cool and robots are needed for jobs companies can’t fill with people (ironically enough, the latter narrative is similar to the one U.S.-based companies use to explain why they need to hire foreign nationals). That’s where this is heading folks: 1099 workers today, replaced by robots tomorrow.

The only hope we have of saving our earning power is through the power of the purse. Support companies that support their employees and don’t patronize any humanity-hating businesses that replace full-time employees with cheap labor or R2D2. In doing so, you may just save your future employment prospects.

Tag: on-demand economy

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