Iceland has a population of 320,000. I've been to Iceland; my roommate in law school was from Iceland. Everyone there knows each other and they're all cousins. By no stretch of the imagination is Iceland an appropriate model for any society other than Iceland's. For example, Iceland has more annual tourist visitors than residents. Each tourist arrival brings money and leaves it there. (It should also be noted that although Iceland is strongly communitarian, it's not socialist. There is no collective ownership of any industries. Iceland is a relatively free market with a welfare state.)

And, it is to be noted, Iceland's welfare state has access to another large quantity of "other people's money" because the Scandinavian countries have formed a community whereby the citizens of each are treated as citizens of any for purposes of migration and access to all government benefits. There are few Scandis who want to move to Iceland to live and work, while there are plenty of Icelanders who've hied themselves off to Copenhagen, Oslo, or Stockholm to get on the dole, courtesy of that other country's taxpayers.

Behind every socialist "success story" lies OPM. And eventually, every society runs out of OPM.

P.S., Commie: Iceland has recovered precisely because it allowed banks and businesses to fail, which is the opposite of socialism. Mitt Romney was right, and you dumb fuckers excoriated him as Satan himself for suggesting let companies go bankrupt.