Chapter 1: Understanding the New Capitalism

I have a friend for whom I’ve been providing legal guidance on various issues. As a lawyer, I can only discuss matters in general terms. He took on a part-time job to supplement his income, which initially seemed promising. Though the pay was modest, he found satisfaction in the work. As he dedicated more effort, his earnings increased, complemented by performance bonuses. He aimed to maximize his hours, treating the job as a stepping stone.

However, his experience shifted dramatically when a new management team took over, leading to the departure of his long-term manager. The new manager reassured the team that nothing would change and that the company would improve. Being relatively new, my friend chose not to voice any concerns, despite being a dependable employee. At first, everything appeared stable, but soon, the landscape began to alter.

Workers were pressured to increase their output while their compensation dwindled. This was not a fixed-wage role; traditionally, more hours meant higher pay. Yet, week after week, his paycheck continued to shrink. Despite his efforts to work even harder, his earnings fell further, leading him to suspect a deeper issue within the company.

During a group call with the new management, the manager insisted that nothing had changed, claiming appreciation for the hard work of the employees. However, my friend and his colleagues recognized this as falsehood. They began to share information, revealing a stark correlation between the increase in workload and the drastic reduction in pay. Many had seen their incomes slashed by over 50%, prompting discussions about seeking new part-time opportunities. One co-worker even labeled the company's practices as unethical and in direct violation of capitalist principles.

“It is not from the benevolence of the butcher, the brewer, or baker that we expect our dinner, but from their regard of their own interest,” he quoted.

“Adam Smith,” I replied, recognizing the father of capitalism's insight. He was correct; the company was acting in an anti-capitalist manner, albeit in an unconventional way. Typically, capitalism faces criticism for underpaying and overworking employees, yet it relies on workers advocating for better wages and conditions. While capitalism is inherently flawed, its inequities are apparent, allowing employees to strive for change.

I conveyed this perspective to my friend, highlighting the issue of transparency in compensation. “Did they ever disclose your pay?” I inquired.

“Not really. Initially, the pay was reasonable, so I didn't question it,” he responded.

“That’s the trick,” I explained. “They lured you in with bonuses and then pulled the rug out from under you. It's worse than traditional capitalism if your earnings are unpredictable, or essentially invisible.”

My friend fell silent, but I could tell he grasped the concept. Adam Smith's notion, referred to as “The Invisible Hand,” is the driving force of capitalism. However, this new form of capitalism has effectively erased the “invisible hand,” replacing it with what can be termed the invisible wage or invisible compensation. Furthermore, the information workers provide is likely monetized elsewhere, creating a troubling dynamic.

So, what does this mean in conclusion?

I told my friend that the “invisible hand” no longer exists; instead, there is a visible force siphoning off his hard-earned income. Options for recourse seemed limited; he might need to unite with others against this new and old capitalism.

Historically, there was a social contract between employees and corporations, but that bond appears to have vanished. I expressed my concerns about the future as advancements in AI and robotics threaten to further displace human labor.

Now is the time to critically examine these developments and, above all, confront this unethical capitalism, which I termed the “invisible wage.” This situation is unjust, and the innovators behind it are likely aware of the ethical implications. It's time to take action.

Chapter 2: Workers Rising Against Corporate Greed

Uber Drivers Protest ‘Corporate Greed’ as Billionaires Cash In

Many drivers feel like they’re investors as well, having sunk countless resources into working for the company.

Tech Workers Are Unionizing: A Surge in Collective Action

From coffee shops to newsrooms and beyond, the US appears to be experiencing a resurgence of organized labor.