[GFischer]

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