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Q.1 For critical thinking

Economics Today
Found in: Page 158

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Short Answer

Why might the U.S. government, which funds Social Security, Medicare, and unemployment insurance programs by taxing wages, desire to find a way to reduce self-employment and inhibit the growth of the gig economy?

The gig economy affects independently employed individuals who take part in tax avoidance.

See the step by step solution

Step by Step Solution

step 1: introduction 

Many individuals in the US these days are engaged with the "gig economy" and they offer types of assistance through a web-based stage. One can arrange anything utilizing the internet based stage and business through the web-based stage is developing step by step.

step 2: explanation

In any case, the issue with the internet based business stage is that individuals included don't believe themselves to be entrepreneurs (independently employed) and they for the most part under-report their pay and wind up settling fewer duties or no assessment by any stretch of the imagination. Along these lines, this is the principal justification for why the US government is figuring out how to diminish independent work.


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