The Unexpected Journey of The Hobbit is a gargantuan, efficient nation, ruled by Frodo Baggins with an even hand, and remarkable for its barren, inhospitable landscape, ubiquitous missile silos, and punitive income tax rates. The hard-nosed, humorless, devout population of 26.661 billion Hobbitians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized, corrupt government juggles the competing demands of Defense, Education, and Industry. It meets to discuss matters of state in the capital city of Hobbiton. The average income tax rate is 55.4%.

The frighteningly efficient Hobbitian economy, worth a remarkable 3,271 trillion Towers a year, is dominated by the Arms Manufacturing industry, with significant contributions from Woodchip Exports, Furniture Restoration, and Tourism. Black market activity is rampant. Average income is an impressive 122,720 Towers, and evenly distributed, with the richest citizens earning only 3.5 times as much as the poorest.

A weakened police force struggles to maintain law and order, back-alley circumcision clinics are popping up all over the nation, drills and shovels have been banned as the government cracks down on any means of fracking, and scenic beaches are now protected by massive concrete walls. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. The Hobbit's national animal is the eagle, which teeters on the brink of extinction due to toxic air pollution, and its national religion is Eru Ilúvatar.

The Hobbit is ranked 299,186^th in the world and 54^th in Middle Earth for Most Eco-Friendly Governments, scoring -6.32 on the Dolphin Recycling Awareness Index.