"Those that don't or lose the formula are generally punished by the market. Unless of course they have government contracts."
Or happen to be banks that are "too big to fail."
"Everybody loves the socialist democracies. They tax the piece out of everyone, have no class mobility and won't hardly let anyone immigrate into their countries."
They're crawling with immigrants, primarily from countries in the Middle East/Balkans where our enlightened policies have spread so much death and destruction. There are plenty of plenty of wealthy people in those countries, just not as obscenely wealthy as the .01% here, the taxes can't be too unreasonable. Besides, look what the people get in return: Health care, free schooling, maternity/paternity leave, social security sufficient to guarantee a life free from want for the elderly. You don't exactly see folks from those countries banging on the door of the US Embassies in their countries trying to get visas to come here. I'd say we could learn a thing or two from them. I know, they're social democracies, with the exception of Switzerland and Singapore, but I have yet to hear from any of you freedom loving folks a good argument against social democracy. Even Switzerland and Singapore pursue policies that provide many of the benefits of what is called socialism.
"Their populations are very small, they provide for no common defense and usually have large natural resource assets."
Which to me indicates there's a lot to like about small. The only countries in the world that are currently doing a decent job of providing a decent life for their citizens are small: Switzerland, Norway, Denmark, Sweden, Finland, The Netherlands, Singapore. Only one, Norway, has a large natural resource asset, in the extractive sense. All of them are doing a superb job of utilizing their most precious resource, their people. What, exactly, bothers you so much about them?
All have ample military capabilities, leveraged by agreements, formal or tacit, with larger powers, with the exception of Sweden and Switzerland, and no one in their right mind has messed with either one of them in a very long time.
Edited for content.