This article has an important insight about government, but I think it misses the mark by a bit. Governments use more centralization and hierarchy than markets, but they are forced to adapt to the limitation on scaling the article describes, they just do it in a different way. When we think of government as purely top-down we are oversimplifying quite a lot. Does Trump control the deep state? Formally, congress and the president are in charge. In reality, no one is in control.
And the same criticism described in the article applies to corporations and other organizations that use explicit hierarchy as part of their structure. Yet they seem able to work around this limitation somehow, at least well enough to make a profit and keep the stakeholders mostly satisfied.
I've been trying to articulate a related insight. We think of government as distinct from other organizations, as deserving to be treated as an exception, but what essential difference can we point to that distinguishes them? If they are just organizations not so different from others, why do we treat them differently?