[anothertraveler]

Good point. Owners can become employees, but there are much more benefits to being an owner that employees never really have access to, so unless the owner doesnt have the skill or capital, I don't see why an owner would want to be an employee. Sometimes employees can't even fathom making 1MM+ on a business deal because employees think in terms of their salaries.

Owners become employees when they accept too much outside investment. They become employees of investors...and investors buy ownership.

I think the balance of power is primarily affected by two things: 1) Barrier of entry into starting a business, such as laws that inhibit/regulate small businesses, or independent workers (owners) 2) Regulation that gives bigger businesses an inherent advantage over smaller businesses, such as limited liability, indemnification, bnakruptcy, mandated group health insurance plans, etc.

Sure, an owner can make 1MM per year and only pay the employee 100K.

But I think the question we really need to understand is, what's stopping the employee from quitting and starting his own company? I don't know the answer.

[eutectic]

You are living in a bubble if you think that the balance of power between employers and employees is mostly determined by how easy it is to start a business.