Why Corporations Will Die (Including Google)

Two, the constitution as it is currently interpreted, prefers the corporate entity over the dna entity.

At some point, growing past a certain point causes decreasing returns to scale instead of increasing/constant returns to scale. Meaning over-scaling leads to a breakdown in efficiency.

Example using Walmart: Year by year it gets more efficient, and more efficient, and more productive, until one day the company starts becoming top heavy and full of red tape at which time it becomes less efficient from all the layers of administration, from burdensome policies and processes, [insert any factor here], etc. It has gone past it's 'profit maximizing size' and has gone too far.

It is not an argument against corporations, just an argument against "bigger is always better". There will always be companies.

In other words: Companies grow by the engineers, handed over to accountants and then to the lawyers. And then they die.

http://www.ted.com/talks/geoffrey_west_the_surprising_math_o...