I agree with you, but there is another side to the temp economy:
http://www.theonion.com/articles/temp-hides-fun-fulfilling-l...
I realize that's a joke, but it's a joke I and many people I know have lived. It's a cultural notion that we need to get a bunch of fulfillment from our jobs. Though I now have a fulfilling job, I was probably the happiest when I just had a job to make a few bucks and didn't take home the worries of knowledge work. Temp work was a good option because there was no responsibility and if I didn't want to go to work, I didn't.
I'm not saying that treating workers as animals is OK or that all temp workers are living a life of bliss – this article show most aren’t -- but there is certainly another side to the story.