YOu have it backwards. A large government has plenty to distribute, which modifies people's incentives and want to make them get some of that pot.
Take the crisis of 2008: if was created through government regulation to MAKE banks give loans without thorough checks on "minorities", otherwise they were fined or blackmailed. Canada didn't have these incentives, and the housing bubble was much less inflated
RE: "Economics is a Form of Brain Damage"