The basic system only function on a small scale because of the need for specialization to function increases with scale. You also need to trust people to work hard enough to cover the basic needs, not consume too much for the system to function, and the leadership to properly direct the use of resources. In all three areas fail it fails and additionally those that support the system over the system goals of the system naturally accumulate and leads to corruption on top of this problem. With multiple businesses competing, those that bloat tend towards failure unless government protects them. That last safe guard is removes as well.