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How the Trump Administration Will Impact the Gig Economy

Kalen Bruce | December 6, 2016

The economy is changing. That’s what economies do.

As the gig economy is emerging, more and more people are essentially becoming independent contractors for companies like Uber and Airbnb.

And the gig economy isn’t going anywhere.

By 2020, 40% of the US workers will be freelancers, according to The American Law Journal.

It’s apparent that the gig economy is only getting bigger.

Job Creation

Let’s face it, with any new administration, job creation is a priority.

All candidates promise to create jobs, but how will they do it? How will Trump do it or help do it?

Considering the staggering statistic above, he will have to consider the gig economy.

When a new company arises in the gig economy, jobs are created. Sometimes full-time, more often part-time, but jobs are being created. Any president would be crazy to ignore this large job creation opportunity.

Jobs are jobs, and the more that are created, the better the president looks.

The gig economy is an easy solution to help solve this problem.

Job Benefits and Protection

Jobs in the gig economy don’t come with benefits. That’s no secret.

There is also little to no protection for gig employees.

The entire idea behind the gig economy is to contract people who will use their own equipment, handle their own liabilities and worry about filing their own taxes.

It takes the responsibility off the company, and leaves it with the individual.

That means companies are giving more freedom to the “employees,” but that also means benefits and protection aren’t much of an option.

That’s just how it works. It’s not a bad thing, it’s just part of it. Trump hasn’t said anything about wanting to change this, he would rather the government just stay out of it. And that may be better for everyone.

President-Elect Trump on the Gig Economy

Honestly, Trump hasn’t talked much about the gig economy, but that doesn’t mean we can’t see how it will be affected. While he hasn’t addressed the gig economy much directly, Trump has given some figures and plans that will directly affect the gig economy.

If you’re part of the gig economy, or considering becoming part, it’s a great time for you.

Trump’s proposed tax plan will actually decrease the taxes that gig employees pay, from 39.6% to 15%.

If you run a business in the gig economy, this is great news for you, because the new proposed tax decrease will encourage more people to head over to the gig economy to find full-time and part-time work.

Looks like freelancers may be even more than 40% of the working economy in 2020 at this rate.

This new tax rate would be around half of what individuals would be paying as regular employees, so the gig world is becoming more appealing than ever.

Though he hasn’t said much about it, Trump has acknowledged the gig economy. Here is a brief statement he made about Airbnb, and the gig economy as a whole:

“[Airbnb] is a very interesting thing that’s going on. A lot of people do like it. A lot of people are happy with it. A lot of landlords are liking it a lot. And then of course there are some groups, hotels in particular, that aren’t,” he said.

“Whether or not [Airbnb] should be regulated — I don’t like regulation. I’m not a person that believes too much in regulation. I think the concept is great for some people. I think it’s probably going to be successful over a period of time. I will not let it happen [in my buildings], but sometimes even if you say it can’t happen, you never know what people are doing behind your back.”

Less regulation means more opportunity. Opportunity to create companies in the gig economy, and more opportunities to work in the gig economy.

Opposing Views

Clinton was much more worried about the lack of benefits and protection offered by the gig economy than Trump was.

Clinton worried about people not having things like maternity leave, sick leave and paid vacation days with the gig economy; however, the nature of the gig economy gives employees more freedom to do what they want with their schedule.

The concern is legitimate, but the gig economy isn’t meant to provide an antidote to these issues.

The gig economy is here to provide freedom for people to work as they please, as much or as little as they please, and for whoever they please.

Trump seems to understand this and seems to want to help the gig economy.

Final Words

The new administration will likely let the gig economy flourish.

The best thing the administration could do is leave it alone.

With a hands-off approach, the Trump Administration is planning to help companies create jobs. And in the gig economy, that means keeping the taxes low and the government’s involvement to a minimum.

Whether you were happy, disappointed or confused that Trump won the election, you can look towards the future with positivity, because things are only going to get better for the gig economy.

The fact is, Trump won, and some good will come out of that for the gig economy. The smartest companies and individuals will find ways to take advantage of the positive changes, rather than focusing on the negatives changes.

The tax decrease on independent workers will be a big boost for gig employees.

The gig economy is just getting started and it’s about to explode. It’s a good time to get in.