> The way I see it, if the people could generate more value self-employed, they would do it!

Nah. The "Losers" in MacLeod's hierarchy are explicitly choosing to leave extractable value on the table (this being the thing they're "losing") in exchange for being allowed to slack. Most people do not have the willpower to be entrepreneurs; in fact, much the opposite—most people want a job that requires as little willpower of them as possible.