The problem is that "the owner can simply become a worker" doesn't really work like that because they likely sacrificed career advancements, education, time, saved up money, etc.

If someone starts running a company at 20 years old and goes bankrupt at 40, they can't simply go back to working a regular job. They don't have a resume, they sacrificed 20 years of career progress. They'll be working at Walmart while their peers who got the same education and have the same intelligence are becoming partners at law firms or investment banks.