The Republic of Happy Cat is a titanic, safe nation, ruled by Happy Cat with an even hand, and notable for its lack of airports, unlimited-speed roads, and punitive income tax rates. The compassionate, democratic, devout population of 19.778 billion Happy Cats are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The large, socially-minded government juggles the competing demands of Environment, Education, and Welfare. It meets to discuss matters of state in the capital city of Happy City. The average income tax rate is 72.8%, and even higher for the wealthy.

The powerhouse a Happy Cat economy, worth a remarkable 1,857 trillion Happy Dollars a year, is quite specialized and led by the Tourism industry, with significant contributions from Book Publishing, Basket Weaving, and Automobile Manufacturing. State-owned companies are common. Average income is 93,926 Happy Dollars, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Teenage TV characters are played by thirty-year-olds by the end of the second season, vital infrastructure development is on hold because of 'nature and stuff', wheelchair users complain it is nearly impossible for them to cross the road in Happy City, and only those who apply can study applied maths. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Happy Cat's national animal is the Happy Cat, which frolics freely in the nation's many lush forests, and its national religion is Happyism.

Happy Cat is ranked 8,541^st in the world and 10^th in Eientei Gensokyo for Nicest Citizens, with 34.6 average smiles per day.