A Most Interesting Economy

In the land of Kanto, we are given a looking glass into a very different world. Ergo, a very different economy. If Kanto is a body, then Pokemon are the red blood cells, white blood cells, and platelets that flow through it. Stores rely off of their consumers - trainers - to buy Pokemon products, as well as the occasional Pokemon sold by retail. Since the trade system is widely used, we are looking at an economy that also acts as a throwback to medieval times, because the cow or horse may be 90% of your total assets. And guess what peons? Free health care... for your pets

What a load of Muk, right? How could the government (the supposed unmentioned government) be able to fund those numerous Pokemon centers, signs, public utilities, and police stations throughout Kanto? If you play the game for a year (525600 minutes) you won't be taxed by the government (other than the fact that your character is underaged). Sure, sure. Game Freak never intended to make the game realistic but let's just try to evaluate Kanto's economy in an economic sense. Every working person in Kanto must file income tax, providing the government sufficient revenues to help make its annual budgets. Keep in mind that most of the population are Pokemon trainers. With the astounding amount of trainers you see out in the open, it seems that it is not unusual to live most of your life outdoors, camping out under the stars or having BBQ under the blazing Sun. It seems a little odd to me personally that Game Freak never decided to create a mayor or governor character. That is, unless the gym leaders are the leaders of the cities/towns. They are revered, respected, sometimes feared, and are very instrumental with their town's economy. Thus, we must assume that as an ordinary citizen, it is either in a place that cannot be explored (perhaps in Celadon city, they have many a skyscraper that may be government headquarters). That being said, there seems to be very little interaction between the people and the government, suggesting that there is no representation. Without representation there is taxation without representation unless the Poke-related businesses in the private sector are an oligarchy. Note that they DO control the market. And thus, I see Russia. Government. The mob. Businesses readily receiving subsidies or leeway with their dealings. Etc.

Propaganda is the silence of the people's opinions of government for Big Brother is always watching. Propaganda is also the silence of the government itself, much like modern day 21st century propaganda. Without political parties, the only groups that which are common knowledge are the Pokemon related groups - the Elite 4, Gyms, Pokemon Fan Clubs - and the mob. It is led by Giovanni, an enigmatic figure who is the leader of Team Rocket, an organization that seeks to control all powerful and rare Pokemon. Giovanni is also Veridian city's gym leader, an official but blatant front. Everybody knows about Team Rocket. But they do not know that Giovanni is the one who has been kidnapping, extorting, killing, and manipulating the country. Through Team Rocket's actions, we see full well that his dark ambition is to control Pokemon, which in turn controls people economically.

Changing gears back,
I have a hypothesis on how the government is able to obtain funds - taxes on the private sector. They probably charge a substantial amount, maybe 5-22.5%. Also, despite the diverse economy, I believe that there is no private land ownership. We are looking at a fascist economy, but one that works fairly well. We don't run into very many homeless ("Super Nerd" definitely looks unemployed) persons. Again, let's go back to the notion of Kanto's economy being similar to a medieval one - one lives off the land, sea, and ocean. It works.