Raw Deal by Steven Hill Summary

Steven Hill’s Raw Deal critiques the gig economy’s exploitation of workers, arguing companies like Uber and Airbnb evade labor laws by classifying employees as independent contractors. The book highlights dwindling job security, eroded benefits, and corporate practices that prioritize profits over worker welfare, while proposing policies like universal healthcare and portable benefits to counter these trends.

This book is essential for policymakers, labor advocates, and anyone interested in economic inequality. Entrepreneurs in the gig economy, freelancers, and workers navigating precarious employment will gain insights into systemic issues and policy reforms needed to protect labor rights in a rapidly shifting job market.

Yes, particularly for its eye-opening analysis of how corporations like Merck and Nissan exploit legal loopholes to deny benefits. Hill blends data with real-world stories, making complex labor issues accessible. However, some critics note its occasionally polemic tone.

The 1099 Economy refers to freelancers and gig workers classified as independent contractors (via IRS Form 1099), denying them benefits like healthcare or paid leave. Hill argues this model shifts risk from corporations to workers, creating a “race to the bottom” in wages and job stability.

Uber is highlighted as a prime example of “runaway capitalism,” sidestepping labor laws by labeling drivers as contractors. Hill reveals how this practice avoids payroll taxes, insurance costs, and overtime pay, forcing workers to bear expenses while companies profit.

Hill advocates for a “New Deal 2.0,” including portable benefits tied to workers (not employers), a universal safety net, and stricter regulations to prevent worker misclassification. He cites Germany and South Korea as models with stronger labor protections.

The U.S. lags behind nations like Japan and Brazil, which mandate benefits for gig workers. Hill contrasts America’s fragmented safety net with Europe’s universal healthcare and paid leave, urging reforms to prevent a “freelance society” devoid of worker rights.

Merck, Nissan, and Airbnb are criticized for replacing full-time employees with contractors. For example, Merck sold a factory, rehiring workers as contractors without benefits—a tactic Hill calls “corporate arbitrage”.

Some reviewers argue Hill’s passionate tone overshadows nuanced analysis. However, his storytelling—highlighting individual worker struggles—balances statistical evidence, making the case relatable despite occasional polemics.

Hill warns that without policy intervention, the gig economy will erode middle-class stability. He emphasizes rebuilding labor unions and creating multi-employer benefit systems to adapt to flexible work arrangements while safeguarding worker dignity.

• “The sharing economy is the tip of the iceberg in a freelance society.”
• “Uber is a corporate minotaur, devouring labor standards.”

These lines underscore Hill’s critique of Silicon Valley’s disruption narrative and its human cost.

Unlike purely academic texts, Raw Deal combines investigative journalism with policy advocacy. It complements books like The Age of Acquiescence but stands out for its actionable solutions and global labor comparisons.