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New Rogernomics wrote:

I just stopped trying to understand how my nation works, as somehow the population are really happy despite giving away 99.6% of their income to the government.

Money is not needed for happiness provided needs are met, and they do get to keep around 1,437 a year. Depending on your welfare policies then food and housing might be free, it is in my nation, as is education and healthcare. Leaving any post tax income to be spent consequence free.