As Corporations Get Larger, They Get Less Efficient
I just found a great article on how large corporations become functionally indistinguishable from the State: the full impact of economic decisions is not understandable and hence poor decisions are made. An example in the article is Home Depot centralising all purchasing from fifty states to Atlanta, Georgia and then exporting it to India. On paper it looks like a great idea: lower purchasing costs. But the actual impact is a multitude of problems as the India purchasing agents don’t understand the lingo of American purchasing. The decision has costs that were not apparent.
This isn’t really surprising when one thinks about it. The State is just another large corporation (albeit one with a monopoly on force). It’s perfectly natural that if the State cannot make wise economic decisions then neither can other large corporations.
