The Desolation of Smaug is a titanic, efficient nation, ruled by Leader with an even hand, and renowned for its ban on automobiles, avant-garde cinema, and smutty television. The hard-nosed, humorless, devout population of 24.933 billion Smaugians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The large, corrupt government juggles the competing demands of Defense, Law & Order, and Industry. It meets to discuss matters of state in the capital city of Smaug City. The average income tax rate is 70.7%.

The frighteningly efficient Smaugian economy, worth a remarkable 2,628 trillion Silvers a year, is led by the Arms Manufacturing industry, with significant contributions from Tourism, Beef-Based Agriculture, and Woodchip Exports. Black market activity is rampant. State-owned companies are reasonably common. Average income is an impressive 105,419 Silvers, and evenly distributed, with the richest citizens earning only 3.4 times as much as the poorest.

The internet has been placed under government control, an increasing percentage of the population's youth have homosexual parents, homeless people are periodically found dead upon altars to assorted deities, and programmes of questionable content are shown at peak-hours. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Smaug's national animal is the dragon, which is also the nation's favorite main course, and its national religion is a major religion.

Smaug is ranked 58,713^th in the world and 10^th in Middle Earth for Largest Manufacturing Sector, scoring 17,900.18 on the Gooback-Jerbs Productivity Index.