This example seems extra crazy. The only entities it protects are large companies. The biggest threat to a local bakery is not their employee leaving and starti

This example seems extra crazy. The only entities it protects are large companies. The biggest threat to a local bakery is not their employee leaving and starting their own bakery, but a large bakery chain coming in and undercutting their prices. No non-compete will help with that. Meanwhile, the large bakery chain does benefit from being able to stop you from baking for someone else if you leave their employ. At a minimum it helps them suppress wages.