The opportunity to work on a project-by-project basis involves trade-offs. There is more independence and flexibility but fewer worker protections and rights. This too tends to skew toward the preferences of younger workers who are less focused on entitlement programs and who don't enter the workforce expecting to have just a few employers over their lifetime.

This might be manageable if the laborer is providing very expensive, highly sought-after engineering skills, but if you are a janitor, having to migrate from a full-time employer with benefits such as workers' compensation and health insurance to brokering your services on a sharing-economy platform will lead to less well-being. When the janitor has to list his spare bedroom on Airbnb, it is not supplemental income--it is survival income. As workers enter middle age and have kids, the need for benefits grows. If more of the labor force is sharing economy-based temporary employment without benefits, it hammers the working class and pushes them into safety net programs. For all the efficiencies of the sharing economy, toward the end of the life or if a worker becomes sick or injured, the responsibility of government increases. Worker protections have shifted from employers to taxpayer-funded government solutions.

Yet as these economic changes take place [...] the role of the state as a regulator has been diminished.

As the sharing economy grows as a share of the total economy, the safety net needs to grow with it. It's a necessary cost for allowing loose labor markets to work without much regulation, and if it generates enormous amounts of wealth for the platform owners, then the platform owners can and should help pay for added costs to society.