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[News] The Background of the Shared Economy
One of the reasons for the recent emergence of sharing is the emergence of a sharing economy. A shared economy is mainly used when it means economic value associated with the possession and sharing of goods and resources. The shift in ownership and management of common goods from social responsibility to individual responsibility is closely related to the emergence of capitalism. The emergence of capitalist society is based on the ownership of goods, which can be understood as the nature of the market inherent in the capitalist system. With demand undecided, companies will seek mass production amid the reality that the benefits of a size economy dictate corporate competitiveness, and eventually the market will be in a state of oversupply. Overcapacity in the market is taught to stimulate consumption among consumers, and the most representative means of education is ideologies such as consumption is virtue. Consumption by advertising allows personal identity to be determined by the level of goods and services consumed, and consumers consume the image of the product rather than the product itself. In the end, modern consumer society creates a habit of consuming more goods than is necessary, which creates environmental problems due to overproduction, and brings about an unequal market structure in which only strong companies survive due to intensifying market competition. What does the end of ownership in this consumer society mean? Jeremy Rifkin, whose books "End of the Consumption" (2001) and "Zero-Cost Society (2014), argues that the ownership and sharing of goods are less expensive than the ownership of goods in the Internet-based information and in the network community.
<Jeremy Rifkin's book, "The End of Consumption," photo source: Yes24>
The economic system in which such sharing is central is called the sharing economy, which is seen as an alternative economy to replace the industrial economy in the future. Jeremy Rifkin believes that the modern economy shows the characteristics of a hybrid economy mixed with a capitalist economy, and gradually the paradigm is shifting to an economic system in which market-based collaborative sharing is emphasized. In the same context, Benchler approached the phenomenon of creating common values based on the Internet from the perspective of a shared economy through his study of 'good sharing'. Looking at Wikipedia, an open encyclopedia on the Internet, he saw that in the near future, sharing will be an important part of the world of information, culture, education, computing and communications. In other words, economic practices are appearing not by market system or class order but by distributed and equal social relations.
<Professor Lessig's Remix cover>
In a similar vein, Lessig approached in the context of a shared economy the phenomenon of extending the life of a product once produced through collaborative consumption, as music is remixed, in a study titled 'Remix'. Stressing the economic value and utility when used many times, Lessig noted that in a shared economy culture is determined not by price but by social relations. On the other hand, some scholars may present the financial or non-monetary benefits of sharing and exchanging assets that are not often used through private networks in the value of a shared economy.
The shared economy is produced and sold through mobile services on the Internet or mobile phones. An Internet-based shared economy offers a wide range of reach for goods and services, providing consumers with a wide range of choices. More information is checked via the Internet, and the information provided through comments and blogs performs the function of improving service levels and protecting consumer rights. As such, an Internet-based shared economy will establish a self-regulating market system that checks consumers' demand and satisfaction on its own.
The economic value of the transition from ownership to sharing is enormous. The significance of a shared economy is not simply valuable in owning goods, services and common goods jointly, but in developing society as a system of sharing takes place through human cooperation and knowledge and wisdom share works. In other words, the shared economy is expected to solve problems such as imbalance of classes, capital monopoly and labor exploitation produced by the market system. The value of these shared economies can be viewed from economic, social and environmental perspectives. A shared economy has economic effects, such as the reduction of production and its substitution effect, the establishment of trust and transparent trading relationships, and the creation and distribution of profits for common goods. The social values of a shared economy, such as the increase of social solidarity through sharing, the enhancement of community awareness and the increase of access to shared resources, cannot be overlooked. In addition, the value of a shared economy is high in terms of reducing traffic demand, reducing emissions of pollutants, expanding eco-friendly technologies and raising awareness of the environment.
Jeremy Rifkin explains the value of this shared economy as follows: Who can oppose the notion of cooperative consumption and a shared economy? This new economic model is very kind. Sharing represents the best part of human nature. Reducing addictive consumption, optimizing myopia and promoting a more sustainable way of life are not only laudable, but also essential to ensure our survival," he said.
<Photo Source: The Kookmin Daily>
However, as sharing (goods) becomes commercialized, there is also a problem where the essence of sharing, which was emphasized in the shared economy, is undermined. Market populism in the shared economy has expanded, seeking profits rather than shares, market monopolization through the shared platform and opaque trading relationship have also been raised as social issues. In addition, the criteria for whether employees affiliated with a joint venture are employees or partners are ambiguous, and there is a lot of controversy over the extent to which these employees are provided with a recovery site. On the other hand, there is no standard for the quality of goods and services provided by a shared company, and some critics say that a shared economy is a means for capital accumulation by some companies, as in the past myths of Silicon Valley.
One of the reasons for the recent emergence of sharing is the emergence of a sharing economy. A shared economy is mainly used when it means economic value associated with the possession and sharing of goods and resources. The shift in ownership and management of common goods from social responsibility to individual responsibility is closely related to the emergence of capitalism. The emergence of capitalist society is based on the ownership of goods, which can be understood as the nature of the market inherent in the capitalist system. With demand undecided, companies will seek mass production amid the reality that the benefits of a size economy dictate corporate competitiveness, and eventually the market will be in a state of oversupply. Overcapacity in the market is taught to stimulate consumption among consumers, and the most representative means of education is ideologies such as consumption is virtue. Consumption by advertising allows personal identity to be determined by the level of goods and services consumed, and consumers consume the image of the product rather than the product itself. In the end, modern consumer society creates a habit of consuming more goods than is necessary, which creates environmental problems due to overproduction, and brings about an unequal market structure in which only strong companies survive due to intensifying market competition. What does the end of ownership in this consumer society mean? Jeremy Rifkin, whose books "End of the Consumption" (2001) and "Zero-Cost Society (2014), argues that the ownership and sharing of goods are less expensive than the ownership of goods in the Internet-based information and in the network community.
<Jeremy Rifkin's book, "The End of Consumption," photo source: Yes24>
The economic system in which such sharing is central is called the sharing economy, which is seen as an alternative economy to replace the industrial economy in the future. Jeremy Rifkin believes that the modern economy shows the characteristics of a hybrid economy mixed with a capitalist economy, and gradually the paradigm is shifting to an economic system in which market-based collaborative sharing is emphasized. In the same context, Benchler approached the phenomenon of creating common values based on the Internet from the perspective of a shared economy through his study of 'good sharing'. Looking at Wikipedia, an open encyclopedia on the Internet, he saw that in the near future, sharing will be an important part of the world of information, culture, education, computing and communications. In other words, economic practices are appearing not by market system or class order but by distributed and equal social relations.
<Professor Lessig's Remix cover>
In a similar vein, Lessig approached in the context of a shared economy the phenomenon of extending the life of a product once produced through collaborative consumption, as music is remixed, in a study titled 'Remix'. Stressing the economic value and utility when used many times, Lessig noted that in a shared economy culture is determined not by price but by social relations. On the other hand, some scholars may present the financial or non-monetary benefits of sharing and exchanging assets that are not often used through private networks in the value of a shared economy.
The shared economy is produced and sold through mobile services on the Internet or mobile phones. An Internet-based shared economy offers a wide range of reach for goods and services, providing consumers with a wide range of choices. More information is checked via the Internet, and the information provided through comments and blogs performs the function of improving service levels and protecting consumer rights. As such, an Internet-based shared economy will establish a self-regulating market system that checks consumers' demand and satisfaction on its own.
The economic value of the transition from ownership to sharing is enormous. The significance of a shared economy is not simply valuable in owning goods, services and common goods jointly, but in developing society as a system of sharing takes place through human cooperation and knowledge and wisdom share works. In other words, the shared economy is expected to solve problems such as imbalance of classes, capital monopoly and labor exploitation produced by the market system. The value of these shared economies can be viewed from economic, social and environmental perspectives. A shared economy has economic effects, such as the reduction of production and its substitution effect, the establishment of trust and transparent trading relationships, and the creation and distribution of profits for common goods. The social values of a shared economy, such as the increase of social solidarity through sharing, the enhancement of community awareness and the increase of access to shared resources, cannot be overlooked. In addition, the value of a shared economy is high in terms of reducing traffic demand, reducing emissions of pollutants, expanding eco-friendly technologies and raising awareness of the environment.
Jeremy Rifkin explains the value of this shared economy as follows: Who can oppose the notion of cooperative consumption and a shared economy? This new economic model is very kind. Sharing represents the best part of human nature. Reducing addictive consumption, optimizing myopia and promoting a more sustainable way of life are not only laudable, but also essential to ensure our survival," he said.
<Photo Source: The Kookmin Daily>
However, as sharing (goods) becomes commercialized, there is also a problem where the essence of sharing, which was emphasized in the shared economy, is undermined. Market populism in the shared economy has expanded, seeking profits rather than shares, market monopolization through the shared platform and opaque trading relationship have also been raised as social issues. In addition, the criteria for whether employees affiliated with a joint venture are employees or partners are ambiguous, and there is a lot of controversy over the extent to which these employees are provided with a recovery site. On the other hand, there is no standard for the quality of goods and services provided by a shared company, and some critics say that a shared economy is a means for capital accumulation by some companies, as in the past myths of Silicon Valley.