[nicoburns]

The real insight here (which you allude to) is that (all else being equal) large organisations are inherently inefficient. If you take the classic libertarian view that government is inefficient and extend the logic to apply to all large organisations (and indeed individuals who control large amounts of wealth) then you end up at a very interesting political position that can provide a unified critique of both modern capitalism and soviet style communism by explaining the failings of both as being due to concentration of power (state power in the case of communism, economic power in the case of capitalism).

[Ma8ee]

Neither is inherently inefficient. It’s just that both types of organisations can afford inefficiencies, while a small private company usually can’t afford it.

That doesn’t mean that small companies always are more efficiently run in all aspects. I expect my local McDonalds be much more efficient than the small sushi place around the corner, which can afford being inefficient due to low rent and probably close to minimum salary for the owner.