In an earlier post, I voiced my questions over how the wizard/witchcraft economy would work. My complaints were twofold: First, the magic depicted in the books seemed to eliminate the need for most physical labor (and elves seem to fill menial positions like cooking and cleaning. Come to think of it, I wonder if JK was commenting on immigrate labor.) Second, being a wizard or a witch in itself is a specific profession, like being a doctor or a lawyer, thus having a society of almost nothing by witches and wizards would be like having a town full of nothing but doctors.
I would like to propose a solution to this problem. Science Fiction author Arthur C. Clarke, author most famously of "2001: A Space Odyssey," once said, "Any sufficiently advanced technology is indistinguishable from magic." Reflecting upon this, I came to realize the magic of Harry Potter could actually be a hyper-advanced technology!
Here is my theory: an Alien race came to Earth long ago, and gave a select few people from different continents some sort of biological technology that fuses with their bodies. Through their thoughts, "witches" and "wizards" could manipulate matter through all sorts of nanotechnologies and other things we don't understand. This technology melds with one's genetics, so it is able to be passed onto one's kin. "Mudbloods" like Hermionie, come about when some of the nanobots leach onto a new body, entrenching them with the "magic."
As soon as we accept that magic is really hyper-advanced technology like no other, the book series' economy (or lack there of) is a reflection on the shifting of the Western World from the Industrial Age to the Information Age. For example, JK Rowling explained what happened to the various characters after they graduated:
'Harry became an Auror for the Ministry of Magic, and was later appointed head of the department....Ginny Weasley played for the Holyhead Harpies Quidditch team for a time, leaving to establish a family with Harry. She later became the lead Quidditch correspondent for the Daily Prophet.
'Ron Weasley worked at George's store for a time, Weasleys' Wizard Wheezes, then joined Harry as an Auror. [Hermionie] worked for the Ministry of Magic in the Department for the Regulation and Control of Magical Creatures, greatly improving life for house elves. She later moved to the Department of Magical Law Enforcement and assisted in eradicating oppressive, pro-pureblood laws.
'George Weasley continued his successful joke shop and married fellow Quidditch player Angelina Johnson.
'Luna Lovegood searched the world for odd and unique creatures, eventually marrying Rolf, a grandson of the famed naturalist Newt Scamander, writer of Fantastic Beasts and Where To Find Them. The couple had twins called Lorcan and Lysander. Her father's publication, The Quibbler, returned to its usual condition of "advanced lunacy" and is "appreciated for its unintentional humour."
'Neville Longbottom became professor of Herbology at Hogwarts and married Hannah Abbott, who became the landlady of the Leaky Cauldron.
'Kingsley Shacklebolt became the permanent Minister of Magic, with Percy Weasley working under him as a high official. Harry, Ron, and Hermione were also instrumental in reforming the Ministry.
Out of the three main characters, all of them ended up working for the government essentially as law-enforcers and political reformists. Ginny writes for a newspaper, Neville becomes a professor (does this mean he has tenure? Or is he just a glorified high school chemistry teacher?) Percy also works for the government. George still maintains his joke shop, making him a merchant, along with Hannah Abbott, a restaurateur.
It seems the job field is pretty narrow for a witch/wizard, it would almost make sense that after graduating from Hogwarts to try to attend an American or British university and get a muggle job. However, this then raises the question of whether non-magical universities are aware and accepting of the transcripts from Hogwarts. I don't think they would, primarily because Hogwarts offers no real education outside of magical instruction (Magical History and Muggle Studies don't really apply to the non-magical world.) The best thing a magical family could do is send their kids to muggle school and teach them magic at home.
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