What I’m Reading, September 2, 2014

Why Uber must be stopped, Andrew Leonard, Salon, August 31, 2014

The real question we should be asking ourselves is this: What happens when a company with the DNA of Uber ends up winning it all? What happens when the local taxi companies are destroyed and Lyft is crushed? When Uber has dominant market position in every major city on the globe? “UberEverywhere” isn’t a joke. It’s a mantra, a call to arms, a holy ideology.

What happens when Uber’s priorities turn to generating cash rather than spending it? What happens to labor — the Uber drivers — when they have no alternative but Uber? What happens when it rains and the surge-pricing spikes and there’s nowhere else to go? A company with the street-fighting ethos of Uber isn’t going to let drivers unionize, and it certainly isn’t going to pay them more than it is required to by the harsh laws of competition. It will also dump them entirely in a nanosecond when self-driving cars prove that they are cheaper and safer. Making the case that drivers are benefitting from the current recruitment wars starts to look like a pretty short-term play. The more powerful Uber gets, the more leverage it will have over labor.

So here’s what’s going to happen. Society is going to realize that power as great as Uber’s needs to be checked. Uber, by virtue of its own success, will demonstrate where the lines need to be drawn for the general good. When Uber is the only game in town, the necessity for comprehensive requirements for commercial insurance and background checks will be obvious. When Uber starts using its logistics clout and unlimited investment capital to go after UPS and Hertz and FedEx, regulators will start wondering about antitrust issues.

Michelle Rhee’s Real Legacy: Here’s What’s Most Shameful About Her Reign, Matt Bruenig, AlterNet, August 30, 2014

In debates about education reform, one very common pattern of arguments has emerged. Education reformers like Rhee jump into the forum and confidently proclaim that poor students are failing to acquire good educations because of bad schools and bad teachers. Then, those who actually know things about child poverty respond that poverty, by itself, is a massive impediment to educational attainment because of its damaging effects on human functioning.

On its face, this response should pose no particular problem for education reformers. If they want, they can synthesize these two points by saying that both poverty and bad schools drag down educational attainment, and that we should therefore target both. Under such a synthesis, the reformers would come out in favor of very simple and empirically proven ways (they love data!) to dramatically reduce child poverty, and also make the case for their specific education reforms. But, with few exceptions, they don’t do that.

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