A (paraphrased) description by someone I know, of the "fallacy of the factory", which describes a serious risk of centralized manufacturing:

You build a factory to manufacture something that people need. That requires a big investment, that the factory now needs to make back in some way, but the legitimate need isn't big enough to do so.

So now the manufacturer starts inducing demand, by lobbying, advertising the product, whatever is necessary to make back that investment. Eventually the demand exceeds production capacity, and the factory needs to expand, again requiring significant investment - plus surrounding infrastructure *also* needs to expand.

This cycle repeats until your small "factory with a legitimate purpose" has turned into a self-serving sprawling system that keeps expanding unsustainably, regardless of what exact economic system it exists under.