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People probably don't want to lose their job because they can't afford to. You acknowledged it yourself in your OP, most people don't have the money to just leave a job. I could probably afford to be out of work for a little while, but I've been applying for jobs for ages with no luck... So I'm not exactly confident even my reasonable nest egg would last me until I found something.
I know and that's the Vicious Cycle of it. Even as soon as you get yourself to that confidence that you know you have value on the job market and you can stand up for yourself with toxic shitty employers, leaving that job or getting fired or laid off means you have to go through the whole job interviewing process again. And that shit is degrading in itself and it starts to eat away at that confidence that you gained
It's not always about confidence. It's about money. Many people live paycheck to paycheck and cannot afford to just randomly quit their job without having another lined up. It's a bit odd that you keep coming back to things like confidence when it really has nothing to do with it.
I'm lucky that I don't live paycheck to paycheck. I can take time between jobs to find a new one if I'd like. But many people do not have that luxury and cannot just quit their job...