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H o wA m e r i c a ' s

NewIndependent Workers
AreTransforming the
WayWe Live

DANIELH. PINK

@
\^llflfrrR EOCXs

A TimeWarnerComPanY
Contents

I
PnoLocur.

roFnrr
Wntoltr AcutNmol
Guy I
I . Bye,Bye,Orgonizotion
CHnprtn

2. HowMonyAreThere?
CHnerrn
of FreeAgency 2/
ond Nuonces
TheNumbers

3. How Did lt Hoppen?


CHeprtn
of FreeAgency 47
TheFourIngredients

PlnTwo
ht FnnAerwWm
4. TheNew WorkEthic 59
Creprrn

Controct 85
5. TheNew Employment
CHnprtn

Creprrn6. TheNew TimeClock 103


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Cuprrn Locotion
Locotion, . . . Vocotion:
hnAcmoWonrs FreeAgencyondtheFuture of Offices,Homes,
ond ReolEstoie2dI
lmpoct: "1"
in FreeAgentNotion
rness the in IPO:
CuprrnlZ. Putiing
ThePothTowordFreeAgentFinonce2/l

System143
ChortondOperoting Crepren Bloc:
18.A ChipOff theOld Voting
of FreeAgency 287
TheNew Politics
,]9.
Creprrn WhotsLeft:
, ond Cooches l7l of Commerce,
FreeAgencyondtheFuture
ondCommuniiY
Coreers, 301
t83
Jl3
EprLoour

Norrs3ll
RrsuLts
ApprNorx: AorNtNmoN
or rlr Fnre
ONiNrCrNsus.339
FreeAgentAvenue: AcrNowLrocntNrs 345
ondZoning t99
, Toxes, lNorx34l

, ondthe
nizedLobor 213

theNew Old Age 233

of Educotion3ll
fie Future
Bye,Bye,Organization
Guy 2 r

delegation of doomsaYers, free MrsrAKxN PRxMrsEs


their status and, PerhaPs more lm- 1. Loyaltyis dead.Last decade'sblaze of downsizing,this
about how people should be- decade'sdot-com layoffs, and the end of lifetime job se-
o p e r a t e .a n d h o w e c o n o m i e st a n curity have eroded loyalty in the workplace, right? Not
it or excoriate it, Free Agent quire.In l-reeAgent Nation, loyaltyisn't dead.ICs dif-
fiction writer William Gibson I'erent.Instead of the up-and-down loyalty that runs
; it's just not evenly distributed." from an individual to an institution, free agentspractice
itself more evenly,it is uPending a new side-to-sideloyalty-a fierce allegianceto clients,
aboutwork and life in America. colleagues,ex-colleagues,teams,professions,projects,
and industries. In someways,loyalty is stronger than
ever.
Pnrutses
2. The workforceis adrifi, operating without a broad,soci.alcon-
of our lives, premisesare the tract. Tite, the implicit employment deal that reigned in
like the pipes or wiring that the Organization Man's day has disappeared.But a new
they determine the caPabilities one has emerged,the animating bargain of free agency
of its performance. Stick with in which individuals trade talent for opportunity.
it's aboutto get slightly weird. Imag-
crept into your home while You ). The bestmeasureof economic success
is growth.The tradi-
your electrical sYstemwith solar tional view is that a larger companywith higher profits is
the concrete foundation and more successfulthan a smaller companywith lower prof-
thev also decided that Your second its. But theseeconomicsdon't necessarilyapply to free
i basketballcourt-so they redid the agents.Bigger isn't better.Betteris better.As millions of
floor and a hoop. When You free agentsdecide that staying small is preferableto
house might look outwardlY like growing big, they are redefining the very notion of suc-
colonial you deParted two weeks CCSS.

got is a solar-Powered, mobile


And that will aflect both the possi- 4. Thefree agent economymakesworkerslesssecure.Some-
manse. times. But as many free agentsfashion a diversified port-
odd architecturalinterlopers' Qui- folio of multiple clients,customers,and projects,they
and remodeledthe stmctureson often find themselvesmlre secxrethan traditional em-
and economic house is built. It's ployees.
premisesand first principles-that
impact. It has alreadYbegun 5. Parentsmusttry to balanceuork andfamily. For much of
assumptionsabout contemPorary the past two decades,middle-classAmericanshave
struggled to balancework and family. Corporations have
respondedwith so-calledfamily-friendly initiatives and
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Bye,Bye,Organization
Guy z 3

lawsmandating familY leave. 9. "Empowering" uorkers and trying to "retain" themis a wise
effortshaven't alleviated the strateg!for corporatemanagersat talent-staraed,companies.
One SizeFitsAll solutionsfor a As more employeeshead for the exits, more organiza-
. That'swhy many liee agents tions are redoubling their efforts to keep them in their
and scrappedthe bal- cubicles.But thesetacticstend to fail becausethey rest
them, the solution is mostlYto on flawed assumptions."Empowerment" implies that
work and family. Blending' the organizationholds the power,and is generously
answer, granting some of it to the individual. But in a free agent
economy,organizationsneed individuals more than in-
solnuorhtrs, missingthat fabled dividualsneed organizations. ("Hey,I think I'll em-
anil lonely.Isolationis a genuine power GM today by showingup for work.") Corporate
way,but free agentshave formed attempts at empowerment,consequently,are both
groupsto rebuild workPlace laughableand patronizing. Ditto for "retention." With a
communlty. free agent workforce,you can inspire people and chal-
"retain"
lengepeople,but you can't them.
want to--retire. Retirement is,
aberration. Why I 0. Americansoughtto get their healthinsurancethroughan
-centuryfi xture-sPeciallY empktyerThis is the standardarrangementlbr most
lessnecessarynot to Americansunder sixty-fivewho have health insurance.
for manyolder Americans?ln- The troubleis, it's an arrangementbuilt on a historic
the retirement night, free accidentand underpinnedby almostno economicor
new old age.Just ask Grandma moral logic. Why should employer-basedhealth insur-
ancecontinue-especially when f'ewerof us will haue
employers?
crisisthat can be repaired'uith hct-
and,morerigorous disciPline. I I . Men are ouenepresented,in the workforceand in the top po-
today is irrelevance.And the sitionsof theeconomy.Women still earn lessthan men for
educationsolutions is that theY similar work. And women still face a stubborn glassceil-
'Ihose
Thyloristsolutionsfor a Thilorist ing. aren'tgood things,but they might end up
in America, schools mattering far lessthan some think. Women are a driv-
to the free agent econ- ing force behind free agency,and could possiblydomi- .
familiesopting to nate the free agent economy.
on their own terms and con-
And expect more Amerl- 12. Rampantindiaidualismisfraying our socialfabric. Critics
whether formal schooling on both the left and the right agreeon one thing: Our
and whether a college degree ts common culture is corroding. And they argue that a hy-
perchargedfree agent economy,with its fleeting rela-
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NO .VNtNICV lSUl rz
Bye,Bye,Organization
Guy z !

commitments, only speedsthe


agencymay have the opposite
bonds,it will mend them. In-
x
@ III CIUI: In the secondhalfofthe twentiethcentury,the keyto
ity, it will repair it. Instead of
bottom,it will trigger a scram-
@ understandingAmerica'ssocialand economiclife wasthe
"art of association"-gen- OrganizationMan. In the first half of the twenty-firstcentury,
The
"own interest rightly U the new emblematicfigure is the free agent-the independent
by ones
de Tocouevillenoted on his t worker who operateson his or her own terms, untethered to a
ies ago is alive and well in +" large organization,serving multiple clients and customers
insteadof a single boss.The rise of free agencyshattersmany
ironclad prernisesabout work, life, and businessin America-
of Amer- from how companiesshould operate, to how we structureour
the basicassumDtions
health care,retirement, and educationsystems,to which
tectonicplates slide into new po-
valuesguide our lives.To truly understand the new economy,
surfacewill begin to changeaswell.
you must first understand the free agent.
New ones will arise in their
paradigm shifts and digital revolu-
IIt ll0I0lD: The largestprivateemployerin the U.S.is not
S&P 500 and collapse in the NAS-
Detroit's General Motors or Ford, or even Seattle'sMicrosoft
of this Internet millionaire and
or Amazon,com,but Milwaukee'sManpower Inc., a temp
dot-comimplosion, we havebeen
agency.

economy. III 0U0II:


"This book is aboutthe free agent.Ifthe term is
vague,it is becauseI can think of no other way to describethe
people I am talking about. They are free from the bonds of a
large institution, and agentsof their own futures.They are the
new archetypesofwork in America."

lnt f0l0: Tdiloism.The free agent'sapproachto work;


descendantof Taylorism,FrederickWnslow Thylor'sOne Best
Way method of massproduction. Under Thilorism, free agents
fashion their work lives to suit their own needsand desires-
insteadof acceptingthe uniform values,rules, and structure
of a traditionaljob. Opposite of the One Size !-itsAll ethic of
the Organization Man era. (Synonym:M1 Siu Fi/sMel

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N O I T V NT N ] 9 V 3 ] U J 9'

x@
How Did lt Happen?The FourIngredientsof FreeAgency s s
N

individualswith experience,wealth,
bring to their next ProJect.
A UniversityofTbxas studYfound
x
@
'lbxas IIE CtUI: How did free agency happen? Fbur ingredients were
the halfli{'e of businesses
ise, a FederalReserveanalYsisof
@ essential:l) the social contract of work-in which employees

that the rype of firm that createdthe u raded loyalty for security----<mmbled; 2) individuals needed a
large company less, because the means of production-that is,
with fewer than ten emPloYees)
13The life tycle of companies ha'' 5B the tools necessary to create wealth-went from expensive,

time. And one result has been Pr huge, and difficult for one person to operate to cheap,
houseable, and easy for one person to operate; 3) widespread,
ing halflives. lbn yearsago, nobody
long-term prosperity allowed people to think ol work as a way
Ten years from nor', nobodY maY
not only to make money, but also to make meaning; 4) the
half-life of organizationsbegan shrinking, assuring that most
moment the longevitYof comPa-
individuals will outlive any organization lbr which they work.
of indiuidunlt is exPanding. Un-
c e n t u r y .m o s l o f u s t o d a Y c a n
IHt ltCI0lD: !,ighty-fivc percent ofArlericans today were not
any organizationfor which we work. alive during the (ireat Depression, which means most of the
job at an organization whose life-
country lacks any conscious recollection ofwidespread
much shorter-l han Your own. econornic privation.

economic adolescence; cheaP, hous- Illt 0U0It:


"Nctscape
was fbrmed in 1994. It went public in 1995.
prosperity; the shrinking halflife of Ancl by 1999, it was gone, purchased by America Online and
four ingredients combined-when subsumed into A()Ls operation. Lif'e span: four years. Half-
ilied the other,and when they cooked life: nvo,vears. \!hs Netscape a company----or was it really a
resultwas 33 million independent project? l)oes the distinction even matter?"
what do we know about how
work and lives?What's going on tn- III t0nD: Digital Marxism. With the proliferation of inexpensive
The answersmaYsurPrlse) ou. computers, r'ireless handheld devices, and ubiquitous low-cost
connections to the Internet, workers can now own the treans
of producti()n.
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S m a l lG r o u p sB, l g l m p a c t r 4 |

seven-hundred-member
:s ofJ.P Morgan-includes links
and start-up companies along with
x
@ IIt CIUI: Instead of laboring in loneliness,independent workers
Norwegian cake, and other fhvorites
Another potent cluster of ex- @ are inventing an arra,v of small groups. Free Agent Nation

Broads, an alumni associationof


Goldman Sachs,whose headquar-
u (l'.A.N.) Clubs are clustels ol {ree agents u'ho meet regularly
to exchange business advice and offer personal support.

City address85 Broad Street.And, E Con{ederations arc informal work collaborations of free
-Corporatealumni.com-to
or start your own.
ts agents. llntreprenetworks are groups of small cntrepreneurs
rvho pav a fee to participate in facilitated brainstorming and

prevalent in the high-tech world, strategv sessions.Alumni associationsare groups of people

intense and fiee agency is the reign- whose common boncl is that they graduated not from the

AXLE (the Association of eX-Lotus same college, but from the same company. llecause most of

Compaq Computer employees), and these groups are self-organized and arise from the grass roots,

Prodigy, and Netscape. Even though thev've eluded much notice. And they challenge the critics

in nearbycubicles,and olten live rvho claim that community is collapsing and that independent

in united-a high-tech diaspora. workers are speeding its demise. Cornmunity isn't dead in
Free Agent Nation. It's different.
Symantec, a California computer
, to go solo, and who asked that I
"The Illt tlCI0lD: One of the earliest self-organizedclustersof free
best: nice part of working at
agents-Benjamin Franklin's Junto, f<rrmed in 1727--<reated
left. Now we've got this great net- "subscription
a library" for its members, u'hich in turn became
all theseother companies."
the first public library in Amenca.

C l u b s , c o n { - c d e r ai ol n s , e n t r e - "F.A.N. (llubs
Illt 0UOIt: are one part board of directors, another
i o n s i s o n e o f t h e m c ' s ti m p o r -
part group therapy They combine the search for clients with
y in America's independent
the quest for meaning, the urge for authenticity with the need
groups call into question thc -I'hey
for sociabilit,v. emerge from self-interest, but endure
social ties or fiactures comrnunity,
through trust."
agency is merely redefining those
art of association" is no less robust in IIE f0lD: Confederation. A regrlar collaboration between liee
itwas in the nineteenth. liee agents agents akin to a law or accounting partnership-but in which
re not going it alone. In Chapter the relationshipsare fluid and the structure is set by an
disappeared; it has simply changed informal agreement rather than a legal contract,
The sameis tme for community. In
itv isn'tdead.ICsdifferent.
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x@
GettingHorizontal:The FreeAgent Org Chartand OperatingSystem r 5 e

x
@
its own organizationchart-but this
like the traditional corPorate o IIE f0nD: FfueAgent Operating Slsten. The underlying instructions
that allow liee agenc,vto function. Like \4'indows, DOS, or
berweenindividualsrun
Fower depends on relationshiPs u Linux on computers, the !rce Agent Operating System
establishes the platforrn on which the free agent economy
an established hierarchY. And the E ()pe|ates.lts basicunit is tnlst, which is fashioned into
fluid, and PurPosefulrather than
preordained'What keepsfree agency
ts reciorocal altruism. (See also: The Goklen Rule.\

principle of enlightened self-interest


the future I know You'll helP me'
Iieewheeling,seeminglY
econornyis that it encouragespeople
What keeps thc free agcnt econom)
Rule.

Mark Granovetter'sclassicstudy of
discovered that most PeoPle found
that in roughlY ltve out of
were people with whom thejob
relationship and did not even

Org Chart is fluid. And becauseit's


Your peer on one Project could be
Today'ssubcontractorcould be
In this sense,the FreeAgent Org
organization chart less than it
brain. In our brains, existing neurons
forging and reforging
laying fresh pathways to one another'
we think. This is one reason that free
more attuned to human
emPloYment
twentieth-century
TheFreeAgentInfrastructurer 5 9

post oflice boxes to more than


States.Founded in 1980, it is now
quarter million people check their
x@
IHt CtUI: An economic infrastructure has emerged to provide a
JannaKing, quotedat the
beginntng
shoot the breeze. Like other com-
@ foundation for free agents' work. Composed of copy and
printing shops, coffee shops,bookstores,executivesuites,the
MBE is bubblinguP
infraslruclurc, U Internet, office supply suPerstores, postal sen'ice centers, and
locations,it's growing faster than
two decades.loMBE and its coun-
g overnight delivery scn ices,this new infrastructure has two
defining attributes. First, it is self-organizedrather than
Free Agent Natlon. $r centrallv planned- Second, the infrastmcture ser-vesa
"'fhird
fundamentally social role by creating a variety of
Places" rvhere independent rvorkers can come together
PlcmctDruvrnY
IIE ]lCf0lD: B,v2002, home officeswill spend $10.2 billion on
s u t h a s F e d e r a l F x P r e s sh a r e Internet access.
speedofa giant corporation FedEx
"Everybody
a c r i t i c a lp a r t o f h o r v a l l b r r s i n c ' s Iilt 0U0It: knorvsthat Starbuckssenes a decent, if
of the free agent work stYle. Some pricel, cup of coffee. But what far f'el'er people realize is that
have their own FedEx accounts And Starbucks is not in the retail beverage industry. It's really in
campaign is Pursuing home-based the commercial real estate business. For me, and for many
i t y .I r s a d s p l a v u p t h e c a m a r a d c r l e other independent workers, these coffeehouses have become
the housebound {iee agent de- free agent of}jce (enters."
"Signsby Donna.Delivered
being.
"FedEx 'fhe
copybelowthat reads, Ilf t t0l0: Feeeagent infrastrLLcture. physical foundation on
'Ilte
pickup and delivery people They're rvhich the fiee agent economv operates. infrastructure is
and count on." The ad rings true tor self-organizedand composed of private establishments.
FedExguy) is the onlY Personout-
ace-which might saYmore about
infrastructure.
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plotoal-aerytAu la6 lsnl PlncoM,
11o all-srua8y ,{puaorjya eroru uru tqJpru tualel Meu eql alzur
,{qaraqt puz-stralord Surlaas 1uap1 lue8z ae{ q]r^,\lualel
',{:lsnpur 8ur-Uztsheroduat
lua8e aarg Surlaas sradnq lrauuor
aql3o quror8tno ue 'srqluqllet{ :po,r uone11 lua8y
aa:g dlaq oq,u slsqeoads leuorssagordgo paarq Mau u paleeo
J^zq safJo3o^\t aseqJ 'xaldruor dlleuortoura eJoru euotraq seq
'aa:3-,(qzuosrad pue urrupurnq Suraq 'puotras
ryo,n -;o peatsur d
'lr at)ollt puz 'arrrd 'azruz8ro ol pa8raura wq tqJzrrr tue1el
llau E pue-erJnosa.r luu t.rodur tsour s,,{urouora aql se lzlrdzr
t
parelda: seq tualzt 's[Enpr^rpur ol suor]zzrue8ro uro.g paurqs m
seq raalod se'lsld s,{e^{IetuauspunJ ont ut ,{urouora uz;41
tuo6vaaJl uorlezrueS.r11eqt uo{ sraflrp ,{ruouo:a tua8e aarj aqI :I0!! lll @
@
x
N O T l V NI N l C V l l U l zer
u
FreeAgent Families l9 3
ON

WallStreetlournal that he considered


family
"one
of the most hearten-
x
@
in social evolution and cultural
point as Nicholson, namely that o Illt CtUI: l-he industrial economy separated work and family'
The free agent economy is rejoining them lnstead of
back to the hunter-gathererband in
of us liveswith phYsicallYa great
like how the human species evolved.
ux
g
balancing work and family-trading them off against each
other-free agents are blending work and family This is one
reason why both family-friendly corporate policies and
a n d y o u r c o n t a c l sw i t h b u s i n c s s
ts government-mandated family leave, though well intentioned,
have fallen short. They force people to balance instead of
born to blend. helping them blend and impose One Size lits All solutions on
a M1 Size Fits Ve wor lfon e. In lqsponse. [ree agents are
t a k i n g m a t t e r si n t o t h e i r o w n h a n d s a n d a r e r e t u r n i n g u s t o
work arrangements perhaps more consonant with human
nature and our evolutionary heritage.

IllI ft0I0lll: Small to midsize family businessesaccount for about


60 percent of all the employment in the world'

'Again, free agent couplehood is nothing new' Before


IIt 0U0lt:
the industrial economy, spouses often worked together' Just as
those small shopkeepers lived above the store, my family-
with Dad s third-floor ofTice-lives belou the store And
thanks to the Internet, Mom and Pop's operation doesn't have
to be a mom-and-PoP oPeration."

IIE f0tD: Commutermaniagel Couples with children and


traditional jobs, whose lives seem to revolve entirely around
the morning struggle to get to work, day care, and school-
and the evening battle to return home and begin the process
again the fbllowing day. (Antonym: DINJ couples-double
income, no iobs)
on FreeAgentAvenue:
Roadblocks HealthInsurance,
Taxes,
andZoning z | |

Angeles, a town where it seems half


screenwriters,the city fathers
and artists working at home to
x
@ lIt CIUI: The United Statesoperates under a thicket of laws
WritersGuild compared this plan
rcgimes that kept their creative
@ designed for a time when most people held full-time,

lobbiedsuccessfullyto block the reg-


u lifelong jobs with a single employer-and free agency was an
exotic choice. These laws have outlived their usefulness, and

to break free from these t onfin- t are hampering the economy most in three areas: health

both deep meaning and a new move-


made everyoneunique for thetr own
ts insurance, taxes, and zoning. Employer-based health
insurance no longer makes sense because fewer of us have
employers. This system,which began as a historical accident,
me after explaining how he had con-
"And in this socr- is grounded in little economic or moral logic. And it is
marrying his wife.
forcing many independent workers to go without insurance
everfor peopleto realizetheir
" while locking other workers into jobs they don't want
But if that chance is thwarted, he
becauseleaving would mean losing their coverage,
harder than ever before-and that
Meanwhile, the U.S. tax code punishes free agents by
another political party i la Ross
making them pay twice the Social Security payroll taxes of
aresayingin this country,my fiee-
other workers, preventing them from fully deducting their
. Nobody is going to dictate to me."
health insurance premiums, and costing them time, money,
and aggravation becauseof the sheer brain-melting
complexity of the tax law. Finally, local zoning laws presume
a clear boundary between work and home, and many impose
severe restrictions-including outright prohibition-on
home-based micropreneurs.

I[I flCI0lD: Tax complexiry according to a Stanford economist,


costsmore than $100 billion in compliance, another $100
billion in tax evasion,and yet another $100 billion in
"distortions
from pursuing tax-advantaged investments." In
"larger
all, the costs of the federal income tax are than the
Defense Department, larger than Social Securiry perhaps as
large as the combined budgets of the fifty states."

"Ifyou
IIt 0U0II: have ajob and get your health insurance
through vour employel be thankful. It was never supposed to
be this way."
(1wolrun u lou sr bua8e asr; tuq;
'eJrTuelrlaury ur luaurdole,rap eiult
lng
a^ellaq I leJ os JPell Jpeur e^,I ry
Jo IJeq aql ruo{ s^orx ol ueqt Mollg
Jo luo{ ur-suonoo jrols puE stgeueq
,,luauerurad,,go asrruord
,{|aJu 'elrq^{ueat\l'aurqleru
a:oru l1:.reqs:a,{o1dur:-rr:qt ,{q para
sarxrlaruosa:z sdu.relprzd-,,u.o1 su
alerodro: eqt aprsurJlo ra11aqar.rbgl
Jreql uo lr qelu ol eJlssp eql puB ' /r^es
lurp le^orsrp auos &Irnrasul pue dra
r pue tuopJa{ qJrq,tt ur ss^rl
srql ur Paqrrls3p a^uq slJqlo sueerp
'ruaqr rog ',&qear
3o ede:spuel ,uau aqr
srqt 'slJI-roMluapuadaput auos JoJ
lur{^{s.reqJ spns ,{:ua8z aar r
I
Ptoct-/Aoluo
sofJow eu,lsUq)-
elo sJa)Jo,l,^oq ut los atuos aaotl
ol a oLtol 6wob at,an duqpwos s,!! !1,,
e0rg-;1e5
oztu "{
'stua8e aar3 a:ttrerd a,rrlrnPordar
.1o
uoruueC sa^lesueqr IIIq IInJ aqt ,{ed sea{oldrua aqt jr
t
'saa,{oldrua parredep ot elu?rnsuI qtlz:q Suuago enunuoJ ol m
dulal
JOd'SAAelS parrnbar ere srer(oldura qrrq,u.Sutrnp pou:d qtuoru -uaetq8ta
) r l t u r q l r Mu r o q P u B P J ^ r ) ) u o ) P I I q JY r r g r qr u s o f : 0 [ 0 t l I l @
@
gI z.z

x
NOt-LVN
INlCV llSl
Permatemps,
TemDSlaves, Labor 2 a 9
andthe Riseof Self-Organized
N

leastable or most unlucky don't fall


dual systemblocksthe low road, but
x
@
rcverthey want on the high road' It Illt CIUI: Fiee agency,ofcourse, has a dark side. Some temp
and the libertY of Bird. OnlY rn
perhapsto FreeAgent Nation'
@ workers do ntind-numbing tasks for meager pay in awful

u conditions. Others perform the same work fbr the same


companiesas emploYees,but are classifiedas temps and

E denied health insurance and other benefits. While most of this


is deplorable, these beleaguered workers account for only a
+r portion of temps-and temps account for only a portion of
liee agents. \Vhat's more, the source ol inequality in work
todav is not between who's an employee and who's a free
agent, but benleen who has skills that are in demand and who
doesn't, benveen who can exercise bargaining power in the new
-Ib
talent market and who cannot. take on such challenges,
"self-olganized labor"
several new worker organizations-a
movement-have emerged to rePresent these downtrodden
rvorkers. The end result u'ill likely follow the path of
professional sports: Independent workers will belong to a labor
union to secure a floor, but many will have agents to negotrate
mole lucrative, personalized agreements above that lloor'

I[t tlGI0l0: Aliican-Americans make up I I percent of the total


w o r k i b r c e .b u t 2 2 p e r t < n t o f t c m p ' .

"Temp
I[[ 0U0II: slaves,as the narne suggests,are not planning
their ascent of Maslow's hicrarchy of neetis or holding touchy-
feely F.A.N. Club meetings to discussthe deeper meaning of
the most
Jent Maguire. lhr from it. The,v are among
disgruntled workers in the U.S labor force."

I[E t0nD: Permatem\.Somebody who rvorks alongside a


traditional empkryee, doing the saurervork, but whose
employer classilies him as a temp to avoid providing health
insurance,a pension, and stock options. (Seealso, Temp 24-7
'A
de{inition of pernatemP: kinder, gentler . . . euphemism
'indentured ")
for sen'ant.'
E-tirement:
FreeAgencyandthe NewOldAqe 2 4 |

to becomea full-time staY-at-home


a rcnuredprofessorshiPat a nearby
Ballentine has ruh a modest mtcro-
x@
TIE CnUI: In the Iiee agent future, fewer people will retire. More
back of his home. Although he
than twenry-fiveyears,he told me
@ will e-tire. Instead of leaving the work world completely at age

is somethingI'll alwaYsdo."
self-actualizingbabyboomerswill
u sixn-fir'e, they'll continue rvorking as free agents-hnding and
executing rvork over the Internet. E-tirement is in many ways

back.As they begin reckoning E demographically inevitable, the simple outcome of supply and

searchfor meaning will intensi$


can't satisfy.ManY will seek
ts demand. As the gigantic baby boom generation ages, it rvill
create an ello!:nlous cadre of healthv, able, tech-savvy,self-
actualizing older Americans. This supply of labor will arrive at
Indeed, the greatest beneficiartes "ruorking
plecisely the rnornent that the age" population is
ions, which will hire free agent se-
shrinking, sparking an intense clernandfor workers.
working but who don't want to be
want to do good without sacrificing Tllt tlCT0l0: When ltanklin Rooseveltestablishedsixty-fiveas the

't be for everyone.-l'hosewho have standarrl U.S. retirernent age, the averageAmerican life
'lbda,v,
expectancy \\as sixtv-three. Iife expectangv is seventy-
physicallabor-the longshoreman, six and rising.
be ready,mentally and phys-
And by a certain age. even more Ilt 0U0Tf:
"(let
readv fbr the mother ofall windfalls: In the
stop working. Recall the words of coming decades,baby boomers will inherit more than $10
am a hundred and twentYYearsold trillion from their parents. Sure, they'll spend some of that
out and come in." Grandma BettY, bounty on face lifts and relaxed fit srvimwear. But there'll be
reaches120.But until then,exPect plentv left over to Iaunch a new career as a senior soloist."
o make retirement an aber-
of life. I||I il010: E-tiretnent.
A new stage in American u'orking life;
working as a fiee agent alier age sixty-five-and using the
global communications nenvork as the platform for obtaining
and completing rvork.
Out:FreeAgency
School's of Education2 s 9
andtheFuture

J. StanleYfound a
disProPur-
of millionaires were free agents-
's
x@
SAf scores,the lrsslikelY
financial risk-taker and therefore to m Illt GtUI: In the free agent future, a host ofchanges will unschool
American society. Mass compulsory education will give way to

conferenceindustry alreadYhot,
u
g
a variety of learning alternatives. Home schooling, perhaps
the most robust expression of free agent values outside the
workplace, will continue to boom. More free agent families
fire as more people seek gatherings will go this route. And more free agents will offer their
learn *-
to make new connections and ser-vicesas itinerant tutors serving this population. High
successfulexamPle is Fasl school as ve kno-w it will cease to exist-replaced and
Coif"r"tt."t-r"miannual, Phantas- augmented by a variety of hands-on options, better attuned to
o f m o d e l s ,m e n l o r s .l o o l r ' a trd nct- the free agent economy. And the self-teaching ethic learned in
I
a free agent medical consultant youth will continue into adulthood, diminishing the value of
"I
8, said, can attend a conlerence college clegreesand upping the value of informal, self-
there is a sort of Socraticin- directed learning arrangenlents.
choose the mentor I will PaY atten-
hour, or two hours, or day-whatever' IIt ttCI0l0: Forty percer]t of college students are now older than
a t t h e i r k n e e .a n d a l s o b e i n a P u s i - twenty-five, Within a few years, the number of thirty-five-plus-
challenge their assumPtlons' year-old college students will exceed the number of eighteen-
ions,work uithin a grouP and nineteen-year<tld college students
.Ihe
ideas." F.A.N. Clubs I discrrssed
"So
when we step into the tyPical school, we're
many book clubsthat alreadYexist' l||t 0U0It:
: sourcesof education-much as stepping into the past-a place whose architect is Frederick
'lhylor
and whose tenant is the Organization Man'
educateda generation of colonial Winslow
The one institution in American society that has least
accommodated itself to the values and form of the free agent

will be a fascinating,and perhaps


rev- economy is the one institution Americans claim they value

ins in America. 1'he specificswill sur- most."

Iflt ilO10: TfuLnhsgiuingTurkq Model. The education model that


predominated in the twentieth century Society placed kids in
the oven of formal education for nvelve years, cooked them
u n t i l t h e l w e r c d o n c . t h e n s e r v e dt h e m t o e m p l o y e r s A f e w
youngsters also received an additional four-year basting at a
place called collcge.
'au
inogo
' ' ' an11
lasAw os lDs oP 'saldnor xas-auresloJ sIJoM os[ uonuu8rsaq
aa11 lsodaqln1 nal qtoa 'sJlI- o o^\t qtrM seruoq ,{1rurz3saqrDsap ur:e1 srql '(arr3yg
dou euoP e^// sluauralols
'alssoli qtnuj ool ^uo luoa euoH/arrJIO IIeurS) OHOS 1aqz1Surtayeru u.ronlllo^{
aqr Jo luepurf,sap v 'Jrrllo reH/arluo slll 'oHoH :0101 llll
e^oq tPoP/ uosDeraL/l1ia,4 jNosN/8OU
'Puotbl4t1 ,, paldruJJtul aq ol puz dtsso8 ol :alrl t.uop a,,u,{esa,u s8urql
Lro,r aqr op ot sJtrr-l;oa8y,uag asaql ot aruol 1g,ndaqt puy
rytqf I
taPnPauos auros 'sqnll qllerq urof .{aqt depol se qrnur sdrqsroqrueru ,{nq
1qr.u.
luo atoq uata 1,uop
stua8e aarg 's066I aqt Jo srureJ al]rqnr eqt alrt ueqt s)pnqrels
aulj sit/t glrj/i^ o1 astldlaiua
Jo s.olury qrl JJoru to[ E Iool 1p,lrsa:e1d aserll uoq]E.ralur
'uosurgou
rW 'atu haa s,tagl
asuotur arrribar teqt sr:alord uo san8zallor qlt^{ atzJ-ol
-r)eJ 'ruortrs (tsrqe
IroM ot pue \) s.tq8ru rsel rnoqz lzq: ol
^u alD daH 1oar6 uaag 'rno Sueq or arqd e aq
'ssaupnqottrwlw Lo1uool 11r,u a8pol s11Erua8y aarg y,, :Il0n0 tlI
,1
ot deq u,! 6uru./ottr
PooC :NOSN/SOU 'luarrad g1 punore sre^oq errgo
1errdft aq1
go aler ,{ruedn:r:roaqt pue 'slepqoq pue spua>leamul JopeJ
'.tQ w)o\) eql
lo 'pardnlo
t.uaJe suonetslJo^\ Jo 'sef,r-llo's1sop 3o tua:rad
o tlslw l]lO/NS lo )saPaqr q4 ,{ep1:on aqr Suunp tuaurour ua,rrB ,{uz ty :0l0ICll llll
'uDDupap tua6oae4 V)
NHO1
'a:rojryo,t luapuadapur
'91 lle8rel e roj sa:tds [ela: pus 'efrf]o 'lerluaprsar esodrndrllnur
197 sn6ny
o zuoq le0qo? tstr) otur qdrour 11r,ns8urplnq ef,Ulo reMol lqdorr pue 'sarzds
J^neJoqellof, ,{puzunuopard auolaq IIr,u saf,rl1o lzrlJaurruoC
filsnpur luaure,rordrur aruoq eql ur tuooq E Surra88ut pue
auoq eql Jo asn pue u8rsep aqr 3urra11z'pJepuets aql aluof,eq
[[rM sef,rl]o JrxoH allsa leal lerJJaruuro] puB lBrluaprsel
qroq adeqsar IIIM 'urnt ur 'sal]auB^ aJrl]o Mau esaql
'Jtrns elnntrexe tred 'qnd ,{1puar-lj
rred-,(rumuruoJ pue "{
tuobvoall uorteroqellof, ro3 sareld 'se8po1 s11g tuaSy aa.rgeq IIr^\ raqto
aql 'IJo.\\ umop-speaq 'tarnb :oj sa:e1d 'soqzpl are,rrrd aq t
l- qledALII Ilr!1Ju( ) sJ )UJoJo sJlJuE^ \ JU ouu otur .r:tur;ds lll^i-rlt1EJM m
a:npord ot pepaau sraryo,lr s8urqt aqt esnoq o1 ,{psour stsrxa
t,,o q tbu! l l n d qf,rq^{-arrlJo paqsloot Jr{r':rntrg rua8e ra{ aql ul :InlJ 1lI @
@
N0 l l v N l N l c v l t u l

x
oLz
A\
"l" in IPO:The PathTowardFreeAgentFinance 2 a 5
Puttinqthe
N

freedomJovingindependentwork-
to outsiders. Besides,I'm not
scruffyguy in Montana daYtrad-
x
@ IIE CnUl: In the free agent future, individuals will raise capital
daughters.And we'd likely need
a free agent division of
@ the same way companies do today. They will borrow money

equivalentsof S-ls and all the u kleb0 or sell stakes in their enterprise (equity). This will

ic companiesmust file.
the details matter less than the s produce an array of new financial insttuments-such as F.A N.
Bonds (see below) and perhaps even Individual Public

from companies to individuals, so,


that provide capital. The de-
ts Offerings.

Iilt tlGI0lD: A 1998 Atthur Andersen study found that 47


alreadygripped our lives. For the percent of entrepreneurs had financed their businesseswith
have more of their wealth credit cards, double the portion in 1993. Credit cards have
. In Americanliving rooms,bulls surpassed comrnercial loans as the leading {inancing
sports teams.and Charlie mechanism instrument for small enterprises.

"Many
IIt 0U0It: boxers already finance their training by selling
shares to investors. About one in ten pro hghters have
syndicated financial backers, whose investments yield these
investors a percentage of the boxer's earnings over a specihed
time. Soloists willing to forgo some autonomy in exchange for
an influx of cash that would allow them to prepare for bouts
in their own professions might also go the way of the
welterweight."

III il01D: FA.N. Bonds.A form of debt hnancing for free agents.
A financial instrument more widely available than student
loans but with lower interest rates than credit cards. To allow
the market to flourish, a corporation, perhaps chartered by
Congress but owned by shareholders, would buy F.A.N. Bonds
and package them into securities-much as !-annie Mae does
for lrome mortgages. (See also: Bowie Mae)

I
A chip Off the OldVotingBloc:The NewPoliticsof FreeAgency 2 e e

singlecoalition intact-in a sense,


that could satisfy any political de-
a legacy of the New Deal. lbr De-
xo
Iflt CtUI: In the free agent future, the path to the Oval Office will
New Deal coalition of union
c i t i z e n sr r a st h e r r a v t o p a s sl e g -
@ run through the home office. America's independent

more.With party affrliationwan-


-splitting voter now a common
u workers-the sleeping giant of American politics-will become
an elecroral force. [-he1will help treate a successorto the

is to assemblethe available corn- 3E New Deal built on the new premises of the free agent

i t i c a ld e m a n d ,d o i t i n r e a l t i m e , F economy. Ihis New liconomy Deal rvill make the individual


rather than the corporation the central mechanism for
distributing health insurance and pensions and for protecting
lwasa masterof iust-in-timepolitics,
worker rights. And it rvill Promote an agenda of simpler taxes,
iat name.Earlyin his presidency,he microhnancing for welfare recipients, temp worker rights, and
fr with an entirely Democraticcrrali- individual accounts for unemployment insurance
iput together a rzrdicallydiflerent,
I to expand trade with the North Iilt tlCI0lD: More than twice as many Anericans now consider
fent.He raisedthe minimum wage big business a greater threat to the country than big labor,
refbrmed welfareby
[ical parts and according to a Gallup Poll.
fll within the samemonth in 1996.
fookthe nail-bitingfinishesof some "Most
Ilt 0U0II: politicians remain obsessedwith groups that are
bsident Clinton'spoliticalweakness. old and shrinking while ignoring a group that is young and
ie of a new kind of politics-and if' booming. And when they do cast their eyes toward free
fldenthad masteredit. l'he Beltway agents, Republicans see close-minded, modern-day Babbitts,
"difficulties"was akin to a se-
fent's antagonistic to government and greedy for profit, while
parning that Dell carries only five Democrats see oppressed'contingent' workers."
predsuchinformation a sign of the
'ltre
[anwhat it really was-a new way of IffE t0lD:7asr-in- time politics. political version ofjust-in-time
ts strength. Moreover, the electrons manuldcturing. lnstead of building one coalition and keeping
r-evenparty split in the U.S. House it together, the modern challenge of politics will be to
I dead heat in the race lbr Prcsi- assemble the available comPonents to satisfy the current
al conditions for just-in-time coali- political demand, do it in real time, and then move on to the
rysysrem. next task.
he just-in-time fi:atures of today's
just-in-timepolitics.If any party at-
eywill resist.Politicianswill have to
ue,candidateby candidate,election
usesand feedsthis giant Iirst will be-
rt the giant to be satisfiedIbr long.

I
I
{
u op p,eqs srulal iaq tno Pallads 'suotlerlE.,irtler:ru,,{sotpr
'atrurlur qtr,\\saJnllnJts
se,u{auour aqt pue 'PrBsaqs tuarrcruleduu pllnq 1[.n a1doad
'tllopeal} puE serrsJp.sllrls,ltJztuoJ
srql uo{ urtu eql lng Irrrc-.ilrunr.roddo alqEJlc,\t?
'sJo
saruedtuo:asoql asnrlJq aq 11r,n sar:rrdaq.1..so8a.1qtr.u ielcl sprl sB Lllnur ulJLIl
p,aqg he,tt se,\{Jqs tslll tY elqurrssuerpuE alquassE 11r,u a1doa.1iilaue,r raleerl qtnu
's:ayunbpeaq erqd1aPelq.l c.\Erl 1lr,nsJJartsl lapJo paurur.rJtJpard e ur ,fiunr r(q Funr
aqr .lal]o Pue 'suotldo l"pppl patuf,uqr,.Jo-rd a .3urqrurp.1o1.tcotsu1.slda.tut
Flruqlal oia.1 :010f, llll
e .raq(ed plno,utruedruo:aqi
3Ot:ed aruo:aq o1 JlIs qq\r\ Jaq ,, u)J,\qeq ur s:oacls -ro,ua;pup -rJ.\ra1tnq.crnu Jo ituald
.urals,isotatrutt'lrtotJ ^\au
sBM'uoqs ur
'lesodo:d aqa prrp stuerJclJla,iupurJ,\url 11.a,tr Jno
ord e apeu ,{aqtuaq.1.'Pa11et rr1 .{pea-r1e aru,iaqt ul:qt 1u-r:ruraqdaarour Ju())Jq ,tspal tE Jo
' -reeddesrp p,u suoqezrueRro JZtsprrutng .qsunou 01 anuluo:)
pue aaJlol Pa,\,lrs L, [ 004
s?ssJLrrsn(loJtml pulr slsrolos]ua;p JarJ su-lllturs atrnb,tcuS 11r,n
,,'asnoq {ur ot aruel '(aq1,,
'JsnJJJr.uplno) rLls l{Jo sasucLalua eJO[r rJ^J 'eunl Jrutls Jql ]y .sJ]els-rroqBu adors
3o
'Plaq (1aru,Tr-rdz puu azrs:rqt ,Surqteordde sdeqlad ,a.SteJ,ilsnuatsocla.rd,uor8
pqluq-elntua^ 1I,n
xog &rag .rar;erza,{ e tnoqV Jltls Jo sJrurotrof,Jrrro{ trleuJq rrer teql sasud-ra1uf,,:11000
llll
uJaq sr?q&tag erupuu.r 'c696 ,iq sassaursnq
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