Thanks, Galt!
That is a question that come to my head many times. When I drive through a village, I often ask me what do they live of. What is their life like? Sometimes it looks impossible, just some houses on infertile rocks and a flock of sheep. It seems imposssible that they all can live of that soil.
If the village is on the coast, there may be may be vacation houses or second homes.
Today when I walked through the small city where I work, I tried to figure what the people lived of. I tried to estimate the size of the industry and the popoulations.
How many restaurants, how many high tech companies, how many shops.
I gave up. I did not have the figure. If I had had them, still I would not have made sense of it.
Does a barber work? Is he productive? The lady in the café? Does she contibute to the economy?
The chain from supermarket to the farmer surely does, otherwise the engineer would have to go hunting instead of designing his machine.
Do they work in the carshops? Do they fool people?
Does the staff in the bank work, or are they a load on society? No idea.
Right now I look out my window over the city. There are mostly apartment buildings, very little industry or something that produces anything.
I cannot figure how it hangs together, neither economically or demograpically.
I cannot figure out who is productive; who is leeching on taxes. Who should be productive?
What would it look like with a 15% flat tax? Beggars on the street? Would I have to go armed every day? Would it be prosperous?