What would happen if everyone quit their job and became self-employed? Who would have the hardest time finding work? The easiest?
I'm only an entrepreneur, not an economist- but my first thought is that civilization would be reduced to subsistence. I believe Aristotle said "the whole is greater than the sum of its parts".
A quick internet search told me that car companies sell as many as 42 cars per worker per year. Could you make even 2 cars per year alone in your garage? Even if you purchased all the pieces from other entrepreneurs? Are you willing to do without a car, or pay the high price that would result?
My husband and I started farming 32 years ago, just the two of us (is that allowed in this scenario, or was I his employee? Lol). Our family (our 2 sons now own the farm with us) now produces 15 times as much with only 5 added employees. I understand the feeling that farms should be as they were in ""the good ole days": one family living off the sweat of their brow. However, I enjoy the specialization that is allowed by a group of people working together. I can be responsible for record keeping, while being available to assist with farm or cattle work in a pinch. Also, we take turns caring for the cattle on weekends so that no one has to always work 7 days a week.
To your final questions: long term employed people, of inestimable value in this economy, might find themselves in a difficult place requiring a total change of mindset - no steady paycheck will be available. Those people used to surviving on their own, from high level of income to low, would not notice as much of a change. Please note: I do NOT mean to disparage employees, or overvalue self sufficiency!!!
People would be employed according to their actual usefulness to society ; those with skills people want would be fine.
The losers would be those in bureaucratic jobs that are only necessary because of other pointless bureaucratic edicts (it's a rent seeking shell game) that infest the public sector. For every teacher, doctor, nurse, police officer etc. there's two people who make no positive contribution whatsoever.