The PANDA of Pencil Sharpeners 2 is a gargantuan, cultured nation, ruled by Panda Protector with an even hand, and notable for its daily referendums, frequent executions, and public floggings. The hard-nosed, hard-working, humorless population of 11.109 billion Pencil Sharpeners 2ians are either ruled by a sleek, efficient government or a conglomerate of multinational corporations; it's difficult to tell which.

The medium-sized, corrupt, pro-business government juggles the competing demands of Defense, Industry, and Education. It meets to discuss matters of state in the capital city of Pandapolis. The average income tax rate is 99.8%.

The frighteningly efficient Pencil Sharpeners 2ian economy, worth a remarkable 9,079 trillion Pencil shavings a year, is broadly diversified and mostly comprised of black market activity, especially in Information Technology, Arms Manufacturing, Retail, and Uranium Mining. Average income is a breathtaking 817,329 Pencil shavings, but there is a vast disparity between incomes, with the richest 10% of citizens earning 5,829,352 per year while the poor average 37,681, a ratio of 154 to 1.

Artists from across the nation compete to renovate the restrooms of old government buildings, crocodile roadkill is smeared across the asphalt of the new Formula One track, beggars on the street are often heard asking for spare votes, and dictionary sales have hit an all-time high. Crime is totally unknown. Pencil Sharpeners 2's national animal is the Pencil, which is also the nation's favorite main course, and its national religion is Pandism.

Pencil Sharpeners 2 is ranked 220,131^st in the world and 8,424^th in the South Pacific for Lowest Overall Tax Burden, scoring -1097.33 on the Hayek Index.