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Larger organizations of people are like larger swarms of fish: they exist to make things harder for predators. Only, predators in this specific human context serve to keep society functional.
The problem is that our intuitions about justice (It's better for 10 guilty men to go free etc) is at odds with the practical feedback loops necessary to prevent the processes you're describing from riding roughshod over everyone else.
Larger organizations should inherently cost more than smaller organizations, and it should scale proportionally.
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