Earlier quoted context omitted.
Most of the time, management don't even know what they don't know. As a result, entire America lost engineers and builders and now don't even know how to build rails, factories and rockets to moon.
I'm very sympathetic to this standpoint, but an obvious retort is why don't the engineers become their own boss and do better? What's stopping them?
A lot of market forces tend to "naturally" create monopolies/oligopolies. For eg if you're the biggest steel plant you can operate efficiently and keep moderate margins, beating any plants not as big (economies of scale). An independent guy (or even the entire team) can't just open a new steel plant shop down the road, even if the current one sucks.