> Large organized groups can offer substantially more economies of scale, and so can outcompete small organizations based on the economic goods they offer.

This premise ignores the existence of the Internet. Wherein small groups of distributed actors can combine their efforts through a nearly instantaneous communications mechanism to match that of the larger groups.

The federal government was conceived when horses were the only way to transmit large amounts of data over a great distance.

We built the replacement for large global groups but then kept the large global groups. The results were entirely predictable.