Diseconomies of scale is a very real phenomenon, and it makes a pressing argument for decentralizing by giving power back to the states. Was that a foreseen side effect the founders wanted to avoid with the 10th amendment? Probably not, but freedom is inherently a decentralized proposition, and tends to be more efficient in many cases as a result.
https://en.wikipedia.org/wiki/Diseconomies_of_scale
> Cowen assumes his readers already understand that cost disease exists. I don’t know if this is true.
Unfortunately, "cost disease" has become politicized, so just like some won't accept global warming, others deny basic realities about economics.