[chongli]

To believe that the Shire was in fact a society built on economic exploitation, and that Tolkien meticulously figured all this out (but failed to mention it), undermines the morality of the tale. And the fact is, nothing truly like the Shire ever existed, so attempting to contrive a real-world explanation for its qualities is impossible.

The English countryside of old is exactly the model for the Shire. Its idyllic, comfortable lifestyle contrasted with the dirty, busy, industry of London and the disgusting, disease-ridden horror of the trenches in WW1 (in which Tolkien personally fought).

The mythology of LoTR Tolkien drew from his knowledge as a scholar but the setting was deeply rooted in personal experience. There are plenty of people living today who enjoy an idyllic, rural lifestyle in full ignorance of the industry, politics, and wars of the wider world.