Meanwhile, since a comment was made in this thread about what I believe that was not, so far as I can tell, actually based on anything that I said about what I believe, I thought that it would behoove me to say something more about what I actually do believe about this topic.
First of all, as Verlyn Flieger most aptly reminds us, the most important thing that one has to remember about Tolkien is that he is full of contradictions. What he believed, and what his art meant, can rarely be summed up in simple conclusions. As Verlyn reminds us in her brilliant paper "The Arch and the Keystone,"
He is the center held in place by the two sides of his own nature. That nature hopes for the Happy Ending but expects the dragon. It can see his work as Catholic yet describe it as not Christian. It can walk toward Heaven with Niggle’s joy and walk away from Faery with Smith’s regret. That nature can with ruthless compassion engineer the separate destinies of both Frodo and Sam. These oppositions are the sources of Tolkien’s power and the tension between them is the energy that unites it. They are what after sixty-five years still sets him apart from the others and makes him the icon, the image, the towering figure that he is.
That having been said, I think that the best place to start in talking about Tolkien's views about politics, including "Politics in the Shire," is letter 52, written by Tolkien to his son Christopher at the height of World War II (in the summer of 1943) when Christopher was 18 and had been called up in the RAF. At the time the letter was written, Christopher was at a training camp in Manchester. We have discussed this letter before, and much of what I am about to say is based on what I said previously.
He begins with one of the more provocative statements in his writings:
Letter 52 wrote:My political opinions lean more and more to Anarchy (philosophically understood, meaning abolition of control not whiskered men with bombs) -- or to 'unconstitutional' Monarchy.
Tolkien was clearly no fan of democracy; he didn't think it worked. He wrote in another letter 13 years later (the same letter that he made his famous statement about the "real theme" of LOTR being "Death and Immortality"):
Letter 186 wrote:I am not a 'democrat' only because 'humility' and equality are spiritual principles corrupted by the attempt to mechanize and formalize them, with the result that we get not universal smallness and humility, but universal greatness and pride, till some Orc gets hold of a ring of power -- and then we get and are getting slavery.
I think his two models for ideal governance were the Shire -- where a group of humble folk live in peace with each other with virtually no central control --and Gondor under the rule of King Elessar -- where the people are governed by a single, enlightened leader.
Then he gets even more provocative:
Letter 52 wrote:I would arrest anybody who uses the word State (in any sense other than the inanimate realm of England and its inhabitants, a thing that has neither power, rights nor mind); and after a chance of recantation, execute them if they remained obstinate!
I don't think that Tolkien is honestly advocating for capital punishment for anyone who advocates nationalism.

But he clearly thinks that that is the scourge of the time.
Letter 52 wrote:If we could get back to personal names, it would do a lot of good. Government is an abstract noun meaning the art and process of governing and it should be an offense to write it with a capital G or so as to refer to people. If people were in the habit of referring to 'King George's council, Winston and his gang,' it would go a long way to clearing thought, and reducing the frightful landslide into Theyocracy.
I love this. I think it really gets to the heart of what Tolkien thought was wrong with modern society. It is the depersonalization of the state, of the government that he sees as the biggest problem. The potential for abuse of power is magnified greatly when its focus is an unapproachable concept of "the state" rather than an identifiable, personalized individual. Tolkien, the wordsmith, really captures this concept with his invented word "Theyocracy".
I think Tolkien really believed in the concept of divine authority, and that the men that could successfully govern men were those who were chosen by God to do so. But I want to highlight one part of that last part of the letter, which shows just how radical Tolkien really was:
There is only one bright spot and that is the growing habit of disgruntled men of dynamiting factories and power-stations; I hope that, encouraged now as 'patriotism', may remain a habit! But it won't do any good, if it is not universal."
Despite Tolkien's earlier protestation that his adherence to anarchy did not mean whiskered men with bombs, he really wished that he could wipe out all signs of "progress". He really, truly believed that technology was the scourge of human civilization. Another part of the letter is very telling about Tolkien's true attitude. He said:
The mediævals were only too right in taking nolo episcopari* as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers. And so on down the line. But, of course, the fatal weakness of all that -- after all only the fatal weakness of all good natural things in a bad corrupt unnatural world -- is that it works and has worked only when all the world is messing along in the same good old inefficient human way. The quarrelsome, conceited Greeks managed to pull it off against Xerxes; but the abominable chemists and engineers have put such a power int Xerxes' hands, and all ant-communities, that decent fold don't seem to have a chance.
* "I do not wish to be made a bishop."
I see several important ideas reflected in this passage. First is the idea that the most efficient times would be if all leaders were men who did not want the job, and preferred to be elsewhere. But that only works when technology has not given those who want the power the ability to exploit it. The bottom line is that Tolkien wishes to return to an older, simpler time.
He confirms this in the concluding paragraph saying to Christopher "We were born in a dark age out of due time (for us)." But then he adds the following, more uplifting words:
But there is this comfort; otherwise we should not know, or so much love, what we do love. I imagine the fish out of water is the only fish to have an inkling of water. Also we have still small swords to use. 'I will not bow before the Iron Crown, nor cast my own small golden sceptre down.' Have at the Orcs, with winged words, hildenæddran (war-adders), biting darts, -- but make sure of the mark, before shooting
I would guess that he is referring to his (their) love of England (which he explicitly refers to in the following letter). The idea of only the fish out of water have an inkling of water is a fascinating one: he is basically saying that only those who have lost what they love and need can truly appreciate what they love and need. The quoted words are two lines from the poem Mythopoeia that Tolkien wrote for C.S. Lewis. As I wrote in the previous discussion, I'd love to hear what others might think of what they mean in this context.
x-posted with Frelga, whose question was and is very apt and would be helpful to have an answer to, particularly with regard to the subject of politics in the Shire, where, as I said before, a group of humble folk live in peace with each other with virtually no central control.
"Spirits in the shape of hawks and eagles flew ever to and from his halls; and their eyes could see to the depths of the seas, and pierce the hidden caverns beneath the world."