I would have to agree with that because the larger a community gets the more regulation have to be imposed . Laws in order to state what is permissible . The question than would be how big before it implodes on itself . Doesn't have the resources to manage it inhabitants .
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We are psychologically and emotionally suited to small groups and we are very good at managing ourselves in such conditions but, our skills don't extrapolate out into larger groups with unknown faces and the faceless.