We burn resources faster when we centralize, in most cases, where applicable.
Centralisation is generally more efficient due to various economies of scale such as fixed capital costs, greater division of labour and larger R&D budgets. Since centralised facilities are more efficient, they will gradually outcompete and buy out / drive out smaller competitors. There are two ways to deal with the negative consequences of this tendency - (1) give smaller competitors an advantage by breaking up / penalising the largest ones, or (2) bringing the largest competitors under public control through nationalisation. But the centralising tendency itself is a sort of natural economic law that applies under most conditions.
The point of centralization is always about control.
Centralisation is generally more efficient due to various economies of scale such as fixed capital costs, greater division of labour and larger R&D budgets. Since centralised facilities are more efficient, they will gradually outcompete and buy out / drive out smaller competitors. There are two ways to deal with the negative consequences of this tendency - (1) give smaller competitors an advantage by breaking up / penalising the largest ones, or (2) bringing the largest competitors under public control through nationalisation. But the centralising tendency itself is a sort of natural economic law that applies under most conditions.
This is a consequence, not a cause.