HUGE MARKETS BEGET DICTATORSHIP AND CORRUPTION

In a country with a huge population, the market is huge. In such a country, the capitalist system can reach the height of its power because of the size of the market. The money and consequently power tends to concentrate in fewer and fewer hands and in the long-run the political system becomes a corrupt plutocracy and democracy dies. In Such a society the gap between rich and poor becomes wider and wider until the system collapses from within. A very good example of such a system is ancient Rome, or the successive empires in China built on the back of millions of peasants. Each empire ruled for a few hundred years and was thrown into anarchy and chaos and fell in a peasant revolution. A modern version is US, where the capitalist and corporation lobby has become so powerful that the legislature just can't pass any laws to narrow the gap and the poor become poorer everyday despite the huge wealth of the country.

If a country is small and has smaller population, the market in not large. As a result, the capitalists in that country can never gather enough money to be able to influence the political system at will. An example of such a country is Canada, or Scandinavian countries, or Switzerland. Democracy in such countries lasts longer and is more vibrant because there is not enough concentrated money to influence it. The lobby power of small capitalists can never compete against the will of the people. These countries tend to have a more just and socialist system and the gap between rich and poor is smaller.