Size doesn't explain it all. You could turn it around and say with fewer people, there are fewer heads to tax, etc. Yet Iceland implements these programs, remains financially viable and has a superb standard of living. Size probably helps but a mindset has to exist to allow these sorts of things to work.

"We can't discuss how many people's privacy we're invading because it would be an invasion of their privacy to do so."

(Headslap.)