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by hueving 3011 days ago
This comment seems to ignore the large portion of people that operate as small businesses. They make money by selling products they create or services they provide, not raw labor to customers.

You certainly can choose not to work for any given company (or even industry). You just might take a pay cut or might have to take on some personal financial risks to start your own business, which isn't palatable to some people.

2 comments

> isn't palatable to some people

And doesn't seem to be economically viable for everyone to do, or we'd already be doing it.

The main financial risk for people is that cashflow problems can lead pretty rapidly to homelessness or health deterioration.

See Coase's Theory of the Firm. Technology is changing the equation by removing transaction costs, and you see more freelancers and self-employed and Uber drivers.

I agree that the current framework makes freelancers and self-employed more vulnerable to cashflow problems, and it's an issue.

I've seen some interesting ways to mitigate it, even in my own country (with affordable health services for small business owners but they have salary caps that exclude IT workers)

https://en.wikipedia.org/wiki/Theory_of_the_firm

It is economically viable for massively more people to do it. The main issue is a lack of simple economics and business education in US high school graduates. Without that, people have no idea how to go about starting their own small businesses.
And rightfully so - the world can’t all be small businesses of 1-2 persons.

There are things worth doing that require a large team working closely. More closely than a bunch of mercurial small businesses.

There are lots of things that don't require dedicated employees that companies insist on.

For example, a public school shouldn't need to employ janitors, it should just contract with cleaning companies.

Unfortunately, the high school systems in the US give people no education on starting small businesses so people lack the economic and practical knowledge on doing so.

I'm not even sure a cleaning company is needed, why not a cleaning Uber? (well, sounds like Homejoy actually, but for businesses)