I don't know if anyone else is interested in this topic, but I'll hazard that some folks are, since Cauldron's default setting is Greyhawk, and it's easy to get a discussion going on topics like this for Greyhawk.
Political economy = the study of the interaction of politics & economics
I think Cauldron is light on this subject, but there's tantalizing hints of deep, dark stuff underneath, that could be "interesting" background in a campaign.
History first -- The history of neighboring Sasserine mentions that, about 110 years ago, Sasserine was conquered by the Hold of Sea Princes, and recently regained independence with the collapse of the Hold (due to it being conquered by the Scarlet Brotherhood). The history of Cauldron doesn't mention this, but I think it's interesting, so I'd port it onto Cauldron too. The Hold of Sea Princes comes with a lot of "interesting" baggage -- founded by pirates, with an slave-based plantation economy. If Sasserine and Cauldron were colonies of such a place until a decade or so ago, it stands to reason that it would still resemble the Sea Princes in some ways. I think there are hints in the setting that this was intended . . . perhaps removed to make Cauldron more portable, or less controversial, as a setting.
Economics --
"Cauldron's main exports come from two sources: mines and plantations. Both industries are based in the hills surrounding the city, and are managed by the various noble families who live in the area. Obsidian and diamonds are the primary products mined in the region. Plantations usually produce sugarcane and coffee. Most of those who dwell in the city itself are either merchants, scholars, or workers in the mines and plantations in the lowlands. Water is never scarce in town, but most of the city's food must be imported from Sasserine since the local fishing and farming enterprises are meager at best."
To me, the exports have hints of Hawaii/Aztec Empire (obsidian), conflict-torn west Africa and apartheid southern Africa (diamonds), the Caribbean (sugarcane), and either the Caribbean, Hawaii, Kenya, or Indonesia (coffee, AKA "Java" after the Indonesian island).
The idea of an elite living at high altitude with clean water, above the malarial jungles of the lowlands reminds me of imperial British "hill stations" in Kenya or India.
Combined with the elaborate dancing and carriages in the Demonskar Ball, and I'm thinking antebellum US South.
The key element of all this: plantations and an spoiled elite imply strong social inequality, most likely either slavery or indentured servitude. Indenture servitude is "voluntary", isn't an inherited status, is typically temporary (e.g., 7 years) and is usually to pay off the cost of immigration to a new territory (e.g., poor Europeans moving to colonial America or Indians and Chinese moving to certain British or French colonies).
For D&D, the point is: after you've gone to the Demonskar Ball and lived it up, once you get out of the city, you see where all that wealth comes from, and it ain't pretty.
Politics:
"-15 years Cauldron's newest noble, a generous human named Vhalantru, is welcomed into the city aristocracy after he donates huge sums of money to fund the rebuilding of the Town Hall . . . In light of his generosity, no one pries into the mysterious noble's background."
In other words, being a "noble" in Cauldron doesn't mean what it means in a typical feudal setting. It's not about being made a vassal to a king or other lord, and owing him military service in exchange for land.
Nope, it's about money -- and mostly, owning plantations. In other words, it's an aristocracy like the antebellum South, not medieval England. Breeding and tradition count, but there's no final arbiter of who is noble and who is not. That's very much like the early days of the Sea Princes in the Greyhawk setting too -- being a Keoland noble helped established credibility as a noble, but so did being a successful pirate captain.
So how is the Mayor chosen? In Chapter Nine, we see how that works -- it's about a consensus of aristocrats/oligarchs. An informal arrangement, again similar to the early days of the Sea Princes.
So questions:
-- Does slavery belong in Cauldron? Or are the plantation workers indentured servants (if so, why did they give up their freedom to work here)? Or if they are free, why do they choose to sweat on someone else's plantation? Regardless of the form of labor, who are the laborers?
My answer would be most of the labor are slaves, and that (using a Greyhawk setting) they are mostly Amedi (Suel primitive tribes, as in blonde-blue eyed types from an ancient empire, now back to Stone Age culture having fled to the jungle a millennium ago) from the nearby Amedio Jungle, plus Olman (essentially Aztec tribes, from their own fallen empire) from the Amedio jungle and outlying islands. This would be similar to the Sea Prince's labor sources.
This gives a slightly different take on the kidnappings and slavery in "Life's Bizarre" -- slavery isn't unusual, it's the kidnapping that is, and the destination in the Underdark.
Your answers will, of course, vary depending on taste. (There's a reason 2nd Edition D&D mostly banned any reference to slavery. It can be a dark part of human history to explore, or something folks just aren't comfortable dealing with. Demons killing people is less heavy in a lot of ways!)
-- What's life like for the plantation workers?
Not too pleasant, I would say. Dire poverty and hard work are inherent. I'd also say one reason they don't escape more often is that the jungle is crawling with dangerous monsters, and also with Malaria, Dysentery, and other jungle infections (looking at Paizo's "Heart of the Jungle" supplement right now, and I highly recommend it if you get interested in this stuff).
Of course, up in Cauldron, the climate is too cool for the malarial mosquitoes, and the lake water is magically cleaned. Kinda makes the Stormblades that much more intolerable, eh?
And Fharlanghn is a deep opponent of slavery (because it interferes with the freedom to roam the open road), so it's adds a dimension there too.
-- Who are the ruling class in Cauldron?
I would say they are, of course, the rich owners of plantations. Some came from Keoland (like the original Sea Prince) and would mostly be Suel themselves -- which means the slavery here is more about class/nationality (like Roman slavery) than race (like the Antebellum South). I think that's somewhat less distasteful. Other rulers from other places -- Cauldron clearly isn't picky about its aristocrats, as long as they are rich.
By appearance, the Taskerhills are Touv (black, from the island continent of Hepmonaland on the other side of Azure Sea), while Premiarch Vandervoren, Lathenmires, and Aslaxins are likely Suel (northern European types, likely from Keoland or the Hold of the Sea Princes). Todd Vanderboren and his mother look more Oeridian (Mediterranean European) -- perhaps from the southern parts of the Great Kingdom.
-- Where's the money come from in Cauldron? Just obsidian, diamonds, sugarcane, and coffee, or is there more here?
Where there's sugarcane, there's historically usually been unfree labor, and also RUM. Perhaps the rum distilleries are elsewhere, but with Cauldron isolated inland, I'd say the distilleries are here (rum is a lot lighter to move than bundles of sugarcane!).
Other plantation crops to consider include opium, "halfling pipeweed", or even coca leaves in the highlands (again, not to everyone's taste) and tropical fruits. To me, the tropical fruit part takes some of the edge off of what's otherwise becoming quite a dark background.
If Cauldron is the word's secret source of pineapple, bananas, durian, mangoes, or other tasty tropical fruits, that gives the setting some serious "flavor" and creates handy exports to make Cauldron rich.
Other plantation crops to consider include rice (grow in plantations near Charleston, South Carolina in colonial times, to feed workers around the British Empire), indigo (the dye in blue jeans), cacao (for making chocolate, grown in west Africa and Indonesia), and tea (like coffee, typically a highland crop, grown in east Africa, of course India, and Indonesia).
-- OK, lots on tropical agriculture -- so what do people eat in Cauldron?
Again, up to you whether you even care. I'd be inclined to go with some eclectic mix of real world tropical cuisines -- rice and beans, peanuts, and sweet potatoes as basic staples for plantation workers. Delicacies include pork and fried bananas/plantains. Other dishes might be more Southeast Asian, like satay (meat on a stick, beloved D&D food thanks to the Conan movie) with peanut sauce. Lots of spicy peppers with all this too, naturally.
Rich folks, however, might eat more bland, temperate climate foods (e.g., "European" imported foods). Imported cheese might be a delicacy, for instance. Ice cream -- which requires magical access to ice -- would be a superb delicacy.
The point is for the cuisine, like the rest of the culture, to be real-world related, yet oddly alien, and totally different from anything in a medieval European campaign.
Anyhow, that's enough of that -- let me know if you have thoughts on this.