Roderick Long had an interesting point in the video below at the 12:50 mark regarding how businesses would be less hierarchical, smaller, and more numerous in a truly free market. He defends his position by saying diseconomies of scale, and how firms are like islands of central planners when they reach a certain size and couldn’t operate at such a size; it is the state that allows them to grow beyond this limit.
My question: Can anyone provide me with links to articles or books expanding on this? Or just their titles would be nice.
Do a google search of Peter Klein and Roderick Long and follow their back-and-forth on this, I can’t pull links right now (at work) sorry. But yeah, I think Klein is much more convincing when he says there is no reason to believe firm size would be substantially different.
I’ve only heard this idea from Long so unfortunately I can’t help out here, but there are many things that would tend to make corporations larger as well. It’s difficult to know how different firms would be in a truly free society. I could care less either way. It seems like such a trivial thing to spend productive effort on. Maybe firms get bigger, maybe they get smaller. I don’t see why it matters.
