The sharing economy’s undead capital, and its discontents
Last week, R Street’s Daniel Rothschild described these services as bringing to life massive stores of previously “dead capital,” allowing a tremendous democratization of commercial life. He wrote, “If the key economic trend of the nineteenth and twentieth centuries was the growth of economies of scale—factories, big firms, multinationals—we are now seeing the opposite.” The sharing economy combined with the Etsy (an online craft marketplace) economy in his eyes to represent a tremendous turn towards filling the coffers of the common person, rather than the great industrialist. Ever more easily, people can rent out their car to pay for a dinner, a room to pay for a date, a house to pay for their own vacation. In Rothschild’s eyes, corrupt cities bought off by entrenched interests risk stomping out this tremendous innovation, sending the undead capital back into the ground for good and depriving countless people of a chance to make a bit of extra money.