Board Thread:Fanon Canon 2/@comment-25152698-20140921020314/@comment-13970942-20140925103439

One possible solution would be to suspend taxes on sales of products and for services in Konoha when the local currency is used to purchase them. This would encourage businesses to perform their transactions through Konoha as a medium, as opposed to other locations. It would also compel these foreign companies to reinvest in the local economy by buying labor or goods in it, in order to maximize their return.

Infrastructure such as roads and highways would need to be improved in order to facilitate Konoha's economic expansion into trade, since it's land-locked and doesn't have a decently wide river. Given the mountainous terrain and dense forests, this would be prohibitively expensive. I suppose it could undertake a "great works" project akin to the New Deal, but that would require printing more currency, or issuing bonds.

Whatever the case may be, I don't think Konoha (or really any ninja village) is a viable location for a booming economy. They're mostly land-locked or else difficult to enter (with natural barriers such as lakes, mountains or forests). This is no doubt to buoy their defenses, but it comes with some opportunity costs.

The only reason ninja villages exist, is because of the ninja that comprise it. Bounties, missions, and the patronage of the lords is the only reason ninja villages can persist. They don't have the resources to grow their own food, or to produce complex goods.

Gah. I peek into the fanon for a second to see what's going on, and I've already written a manifesto on irrelevant trivia.