An employer makes all employees contractors? Hmm?
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Not possible in most industries. There are certain requirements that need to be met to be a contractor.
What requirements? I'm very familiar with hiring and training contractors through 3rd party agencies. All that's required is the skill set for the work.
Like anything else there are advantages and disadvantages for both types of work arrangements, but for a lot of industries independent contractors will not work well.
The IRS defines a person as an independent contractor “if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”[iii]
That doesn't really work well for retail, many service industry jobs, restaurants, hotels, etc, etc.
Also, from the employee's standpoint, they give up all employment law protections, in addition to things like benefits, tax withholdings, etc, etc.
Good points