No, you're wrong on farming...remember "what is seen and what is not seen." Those 98 people who are no longer farmers...all those hours and years that are no longer spent farming, are now applied to other, more beneficial endeavors. The expenditure of exactly that amount of time and energy didn't cease, it was just freed up, by technology, to be applied to other, more sophisticated things.
Books are written, airplanes are designed, software is developed, etc., etc., by people who are freed from trying to feed themselves by directly interacting with the land...Again, it's called progress.
By your logic we should all live at starvation level in the woods, spending all of every day hunting and gathering...after all, then there would be, as there is among animals, 100 percent employment.
I don't have any thoughts on your proposed solution. Sounds a bit Marxist and as if it would require central planning, and therefore coercion. You might want to spend a year or two studying at mises.org before you try to jump ahead with it.