An interesting take.
I am not sure that is true, though. Assume for a moment that Google would waste 50% of their profits. Truly, a huge inefficiency. However, would that make it likely some other corp could take their search/ad market share from them? I doubt it, given the abyss of a moat.
One could say: True, therefore search is not a reasonably functioning capitalist market.
Yeah, I know, this can turn into "no true capitalist market". Still, it seems reasonable to say that many markets work in a certain kind of way (with lots of competition), and search is not one of those markets.
Regardless of their effectivity, it means LLMs are not useful for them.
Just this month the hospital in my municipality submitted an application to put in a new concrete pad for a new generator beside the old one that they, per the application, intend to retire/remove and replace with a storage shed on it's pad once the new one is operational.
Full page intro about how the hospital is saving the world, such a great thing for the community and all manner of vapid buzzword bullshit. dozens of pages of re-hashing bullshit about the environmental conditions, etc, etc, (i.e. basically reiterating stuff from when they built the facility), etc, etc.
God knows how many people and hours it took to compile it (we'll ignore the labor wasted in the public sector circulating and reading it).
All for a project that 50yr ago wouldn't have required 1/100th of the labor expenditure just to be kicked off. All that labor, squandered on nothing that makes anyone any richer. No goods made. No services rendered.
You're conflating private ownership with the organizations nominal financial structure. It has nothing to do with the structure model of the organization and everything to do with resources wasted on TPS reports. This waste has to come from somewhere. Something is necessarily being forgone whether that's profit, reinvestment in the organization or competitive edge that benefits the customer (e.g. lower cost or higher quality for same cost). The same is true for a for profit company, or any other organization.
FWIW the hospital is technically nonprofit as is typical for hospitals. And I assure you, they still have all the wrong incentives despite this.
I'm not smart enough to understand the macro-economics or incentive structures that lead to this happening, but I've seen many 100+ man teams that output whose output is something you could reasonably expect from a 5 man team.
In finance, you have to produce truly astounding amounts of regulatory reports that won't be read... until there is a crash, or a lawsuit, or an investigation etc. And then they better have been right!
In the private market are there really so many companies delivering reports no one reads ? Why would management keep at it then ? The goal is to maximize profits. Now sure there are pockets of inefficiency even in the private sector but surely not that much - whatever the companies are doing - someone is buying it from them, otherwise they fail. That's capitalism. Yes there is perhaps 20% of employees who don't pull their weight but its not the majority.