It's a negotiation with severe information asymmetry.
The business does hiring many times, so they reap the efficiencies of scale and get increasingly adept over time at hiding the risks they offload onto the contractors.
To balance the information asymmetry, the contractors would need to pool their efforts similarly, and improve their ability to discover the true compensation. In other words, collective bargaining, with specialists who understand the full terms of the contract including all that's hidden in the fine print.
<snark cantresist="true">All those government officials who pass laws crippling unions should stop treating business owners like idiots who need "protecting".</snark>
Increasing unionizion has many side effects on the wider economy, and it's not my purpose to flog them. Instead, I'm merely trying to illustrate that each individual contractor is at a significant disadvantage when negotiating.
The business does hiring many times, so they reap the efficiencies of scale and get increasingly adept over time at hiding the risks they offload onto the contractors.
To balance the information asymmetry, the contractors would need to pool their efforts similarly, and improve their ability to discover the true compensation. In other words, collective bargaining, with specialists who understand the full terms of the contract including all that's hidden in the fine print.
<snark cantresist="true">All those government officials who pass laws crippling unions should stop treating business owners like idiots who need "protecting".</snark>
Increasing unionizion has many side effects on the wider economy, and it's not my purpose to flog them. Instead, I'm merely trying to illustrate that each individual contractor is at a significant disadvantage when negotiating.