> I think that ultimately puts a damper on peoples' productive and creative ability as they tend to then focus more on keeping their job rather than being the most productive they can be for their employer.

You could also look at it the other way. The lack of a safety net is like burning the bridges: it encourages you to be more productive and creative precisely because if you're not, then you've got nothing to fall back on.

I think that works when looking for employment, because there is a wide open field in which creativity is more likely to find a good match. Once people get hired they tend to focus solely, right or wrong, on getting on with the people within their organization which is going to place a limit on their creative output.