Free market competition does not sort it out right quick, particularly in an economy where capital has consolidated as much value as they have through an oligopoly.

The problem with this is that people think that the net deficit disadvantage matters.

It doesn't. Companies are now owned by shareholders that are set up to not have to care about that company within a fairly short period of time. They're not owned by people who have any pride in "winning" that market or an existential threat to their finances if things go poorly. Most publicly-traded shares of companies on stock exchanges are owned by pension and retirement funds, and the person at the head of that fund has exactly one job: make money for the members. If that means gutting the company they hold shares in like a fish, while simultaneously setting up to exit the position, that's what that means. The company's net deficit disadvantage is not the fund's net deficit disadvantage, and that's by design.

Now, that has massive economic consequences for the people who are at the company (and, y'know, actually do the work), and for customers who relied on the product or service, but the fund has made money. Whether its members spend it on anything that will create more economic value over time is another matter. For example, fast-rising homeowners insurance rates in places in the Southeastern US that have been popular with retirees over the last few decades would indicate that they aren't spending it wisely, but, hey.