American history is repeating itself as more workers find ways to become self-employed. Author Tom Peters pointed out that in 1900 half of America’s work force was made up of self-employed professionals, and statistics show that many modern Americans are making this old trend brand-new again. Almost half of all current United States residents either work for or own their own small businesses. The more things change, the more they stay the same.
An Old Trend
Of course, they didn’t have the Internet all those years ago. Certain occupations -- rag-pickers and coachmen, for example -- that were popular for small businesses and self-employed professionals back then certainly wouldn’t fly today. Conversely, no one in 1901 would be a self-employed virtual assistant, or sell products through their online storefront.
Self-employment has been around for a long time, and it’s becoming more popular than ever…so when is the government going to catch up and start catching on to the needs of self-employed professionals? It’s not 1901 anymore, and many U.S. workers work independently for themselves…so why is it so difficult o be self-employed in America? Reform is the latest buzzword, but no one’s using it when they talk about self-employment, a truly outdated system that could use a lot of freshening up.
Self-Employment in the Modern Age
Some experts believe that self-employed professionals are the key to solving the nation’s economic problems. If a huge chunk of the American work force was given reforms and breaks allowing them to keep more of their money, they would have the power to spend more money -- and then everyone would have more money. It’s a powerful argument, but don’t expect the politicians to start making it any time soon.
Currently, self-employed professionals (who make less than $250,000 a year) shoulder a huge tax burden, paying more than many small businesses. Related costs, like health insurance, only put more financial stress on the over-taxed independent workers. Self-employed professionals have to pay all the Social Security and Medicare taxes that many companies cover for their employees, but the self-employed don’t get the same money-saving deductions that large companies enjoy.
Getting assistance is extremely difficult. Self-employed professionals do not receive traditional worker’s compensation benefits or unemployment insurance. Only a handful of states provide a self-employment assistance program that helps independent professionals with some of their financial burdens in times of trouble, and many federal and state labor laws don’t even cover the self-employed (so they have to pay their own court and litigation fees when problems with clients occur).
More people are becoming self-employed because it’s easier than ever to sell products, to connect with clients across great distances, to advertise on a national level and to find opportunities -- but it’s extremely difficult to provide insurance, pay the oppressive tax burden and receive assistance when recession and other problems hit the country. Self-employment is much more than a trend, and it’s not just another Internet fad. Professionals have been working for themselves for centuries, but they’re still getting centuries-old treatment from the government.
KC Morgan - KC Morgan has been the featured writer in Self-Employment since 2006, using personal experience to create guides to being self-employed.
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