There's a much simpler explanation. Most entities most of the time (with such probabilities increasing with the size and age of the entity) seek to defend and expand their power. The American political tradition held that the blessings of liberty would be granted and prosperity would grow if the power of the largest such entities were kept in check; first and foremost the British Crown, second the newfound American governments (at different levels), and eventually the largest private entities as well. But America abandoned its commitment to that tradition in all but name. America is no longer committed to property rights, free markets, free expression, or free association, such protections exist today only on paper. So every entity makes locally optimal decisions, leading society into a slow collapse.