and extend to all skill levels and wage levels. What you're seeing right now is most of the media focuses on sharing economy companies. 'cause they've tended to be the most disruptive, But this whole freelancing economy is only going to continue to grow, sell anything from task at sea would count as highly counted as that because it's an easier way to have to work with just a platform rather than work for an employer. So you're just utilizing a platform to be able to market your business better and reach customers better rather than having to be reliant on an employer, were you give up a percent of what you produce for almost the name? And in example, I use I mean, I studied if financing collagen if I wanted to go out and start my new firm right after school The twenty years ago, it would have been very hard to market myself. I make myself stand-out. So What would I do? A Go to Goldman Sachs? I go to JP Morgan. I'd find a. TU well-known investment banking firm to go to. That's a way to show my quality and signal that. And in a way, I would take less income in order to, let's say, work at Deloitte. But now when you can go out and start your own Furhman of rely on things like the Internet and things like 'peer-to-peer reviews, professional reviews, those types of standards. Now it makes it much easier to work for yourself. It's the whole idea of these information. He cemeteries that existed before workers are able to overcome those in ways that let customers know their quality and service level without go into a large employer sell UNIMAR high-level, Would you say the Chinese economy start Ed when people on organized vis contracting out online or what about when you would put out ads in newspapers before Internet existed? Was it that pre Shannon Konomi stage here? I mean all these business models that the sharing economy embodies There. Nothing new. What's happened is that the transaction costs have fallen so much. They become much more common. I would say really the rise of 'peer-to-peer online interaction, things like eBay in 1995 the growth of that. That's where you can trace the beginning of this growth an independent work to. And if you look at the graph showing the rise of ten ninety nine's file with the IRS, It really does coincide with 'peer-to-peer interaction on the Internet because I use an example of my mom. When I was growing up, She would go to the goodwill and she'd make mittens out of old sweaters that she'd find and sell seldom it. Crafts door, IRS aircraft Harrison. I mean if he wanted to support our family doing that. I mean, good luck. Maybe she'd make 100 bucks every other weekend Seven savvily good plan if if she wanted to do it for full-time work. But now what she could she do, She could happen at sea and reach theoretically anyone in the world and grow her business in ways that would have just been too costly and too time-consuming before thinking era of higher transaction cost. It was a hobby in today's era of extremely low transaction cost. It could be a full-time job. That's the kind of small changes that lead to. Overall, massive shifts in how to labour markets organized, And we definitely do need those mittens isn't in this northeast weather at Sal aged centering th what sixteen degrees when we were recording this. Yes, Basel a one more example on this is it's not just the Labor Department that's taken moved to realize the importance of independent work in where everything's going. You also have representatives Diane black in the least Ifan IQ following a bill called the harmonization of coverage Act, which would fix that problem. I brought up where the fair Labor Standards Act used a different test than everything else. For example, if you're a business owner and the government accuses you have missed classifying your workers. There's cases where a business owner his one against the IRS in court, but then lost to the wage an hour division of the labor department because they're using different tests. So this bill kind of just takes a nice middle road and says, Look, Let's have one standard in use it across federal agencies. So we have some stability and it makes it a little clearer for job creators on how they can structure are organised. Would dispel closed vet, loophole that would let Department of Labor, uh, ride a blog post that would regulate it. It would close it because it would mean that they all have to use the common-law tests, which is, as I said, is the most commonly accepted one. I think it's the strongest standard to use. That makes the most sense because I, I've, when you're making decisions on of someone's in employer an independent contractor, I don't think it should matter how economically dependent They are on the worker or on the company. 'cause that so individual specific which had matters the degree of control just like it was always intended to do to understand how people are organized for working. So what's update on that fail? What stage is at at? Uh, there. I still haven't seen a Senate counterpart and I don't think they've had a hearing on it yet, but it's something I think is looking forward is a smart move because we need to make sure that we don't bounce back and forth on administrators interpretations. Just pretend depending on who is in power, It is something that I think Congress needs to get involved in because the workforce. Has changed so dramatically over the last fifty to eighty years. I don't understand where we should be using the same laws from then to try to govern the independent workforce that we already have today, and that we're only going to be increasingly moving towards. On that note, I want to thank Jane Mayer senior found Foundation for governent Canada-India far showing us the pitfalls that can happen when executive branch over-regulates or regulates via blog post on an Thank you drive for coming for your twenty second and final time on this. Yeah, I think you have more friends than Evans, So you'll have plenty more people you could bring out Michelle, the Absolutely You can find Jarrett's work on at Forbes and vehicles Twitter AT and that the foundation for government accountabilities website VOA's and Facebook and Twitter attack freedom lead us to review on. I tuned. Hopefully you reach their destination by now and thank you for listening. The tax policy podcast is produced and distributed by tech freedom, a nonpartisan nonprofit think-tank in Washington DC to learn more about our work them make tax deductible donation or find other episodes. I must online at tech credo d'abord. And didn't.