How do you think the wizarding economy works ? From what we've seen, most wizards work for the government or own a shop, so do you think they work as a collective ? How is Malfoy so rich ? Do they buy their food/alcohol/ from muggles ? Do they pay taxes to the MoM or to the state ?
Finally, who do you think is more corrupt ? The wizarding world or the USSR ?
Nobody even knows, man, but I'm sure it's wild.
Well, we do know a few things.
What Do We Know About Wizards and Money?
One is that they're on the gold standard by using literal gold as well as copper and silver for the minting of their coins. Based on Bill's entire job (curse breaking ancient tombs) they cannot create these metals from nothing nor transfigure them permanently from a different substance (probably why these are used to prevent counterfeiting). It also allows goblins to control the currency, which is a very very very good thing for them and one of the few means of leverage they have.
However, given that, I have a distinct feeling that inflation/monetary controls are poorly understood. The goblins search for gold, in part, by grave robbing and introduce it into the economy. Whenever this happens, there's going to be inflation and your wizards will be very confused on why a galleon suddenly seems to buy them less than it did not so long ago. Though, goblins controlling distribution, they may have controls in place for inflation/deflation like any central bank.
We also know they don't use credit. We have no hint of credit being used throughout the books. Harry has to carry a sack which carries his money. People always have to visit the bank before shopping.
We know there are some substances that a wizard cannot point blank create from nothing. They can summon water out of thin air: they cannot create nor reproduce food. Food is always going to be an issue even for a competent wizards.
And also, wizards are humans and specialize in fields. Everyone gets their basic Hogwarts education (some... uh... better at it than others) but just as in real life people specialize into certain fields based on their ability. Most wizards are not self-sufficient or else could find someone better at a task than themselves.
I mean that, fundamentally, wizards and witches trade goods and services, the underpinning of any economic system.
Which is why, tellingly, Arthur Weasley seems to take home a paycheck and we see people with jobs where they are presumably paid some amount of money. Fred and George also needing money to purchase the building, materials, etc. for their shop in Diagon Alley.
I think we can safely say that Gringotts acts as the central bank. Now, we don't know if they give out loans or not, but what they do is hold the money hostage, mint the coins, and presumably control distribution of gold into the market.
They perform the vast majority of the functions of a central bank and control much of the wizard economy (without the wizards realizing it).
It's also unclear if wizards actually accrue any interest on the gold in Gringotts or if it just... sits there... and devalues over time as more gold enters the market... guarded by dragons so they can't access it directly when they wish. (If another goblin war breaks out--guess who has all the money? Literally guarded by dragons?)
There seems to be a clear lack of a centralized economy, so we can rule that out, and socialism doesn't seem to be the name of the game in that we see no orphanages, no financial aid to those like Ron whose family can't afford a wand, no economic systems of any kind. You're kind of on your own as a wizard.
Beyond that though, it's hard to say.
His ancestors probably beat up other wizard families/muggles ages ago, stole all their money, and have been sitting on it passing it down to a single child for generations. They then marry into other wealth to keep the fortune alive.
The Potters, through Pottermore at least, made their fortune by Harry's grandfather making miracle hair gel. Some families seem to specialize in fields and publish the standardized textbooks used in Hogwarts. You can get rich with people paying for a good or service from you.
Do They Buy from Muggles?
All signs point to the house elves working in farming collectives. We even canonically have "elf wine". Gee. I wonder how that got made. Basic farming materials may be bought from Muggles but based on the food we hear about they're produced in wizard kitchens/factories. Wizards love magic in their food... perhaps to prove it's not muggle.
Actually unclear. One would think so, especially as the Ministry has employees who have to get paid somehow. However, I don't remember mention of taxation in the books. Could be I've totally forgotten.
I imagine it'd be to the ministry, though, which effectively is the state for wizarding britain as it doesn't seem divided up into regions or any other kind of government.
What is this, the Corruption Olympics. I mean... I can't say I'd put any government necessarily as more corrupt than the USSR. There are contenders, certainly. But more?
I will say that the Wizarding World is really really really bad though to the point where the 'good' characters are shocked and appalled when other characters refuse to spy on the ministry for them.
