>Bureaucracies have diseconomies of scale. There is a point past which "larger" is no longer getting you significantly better amortization of fixed costs and is instead just increasing communication costs, adding layers of middle management, exacerbating the principal-agent problem and making you a more attractive target for corruption.
You write this as a self evident truth but it isn't. In what way is having a single trucking standard for the entire country less efficient than having 50? In what way is having a single currency across the entire country less efficient than having 50? In what way is having a single standard for approval of medication less efficient than having 50?
The US's advantage is precisely because of it's scale. It provides a massive addressable market allowing companies to scale rapidly.
You write this as a self evident truth but it isn't. In what way is having a single trucking standard for the entire country less efficient than having 50? In what way is having a single currency across the entire country less efficient than having 50? In what way is having a single standard for approval of medication less efficient than having 50?
The US's advantage is precisely because of it's scale. It provides a massive addressable market allowing companies to scale rapidly.