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Hey, get back here Amber-Gollum! We want to know!

The simple version is that everyone besides dragons and fey have limited active magical power with which to make things. Dragons have limited sympathy for “lesser beings,” and fey have limited interest in being full time object factories, so there is still scarcity. Scarcity means you have to decide how to use your limited resources. The simplest way to do this is with a medium of trade, like money.

Feel free to cop this answer, by the way, Amber. I meant to give you this info you earlier, but I forgot.

( if there is a strong enough central authority, things like centrally planned economies may be tried, but so far they haven’t worked all that well unless there was a strong free market component. There’s just too many factors to consider, and many people are more motivated by making their own choices than by any particular benefit they might get. )

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