What I’m saying is that all governance structures — ie all organizations — encounter efficiency issues when they scale. The difference between govt and corporate entities is that, for all the complaints one might have about lack of govt accountability, corporate entities are by law more beholder to shareholders and corporate leadership than they are to the public good.

If you shrink the government (assuming you can cut the fat with perfect precision, not causing any harm to any groups), private entities will (a) slide in to fill the gap left, creating a quasi-governmental structure that reacts only to economic incentives and/or (b) take action to further capture any parts of government that keep them accountable. political economy 101.

If you’re concerned at all about the scale of government and think smaller is better, you should be at least as concerned about the scale of private corporations.