Minecraft is under feudalism
Villagers live under the dictatorship of the Golem (DotG). Later, they turn into the dictatorship of the Steve (DotS). The Steve is the feudal lord. For STEVE owns all the land in the village. Villagers aren't slaves because Minecraft leashes don't work on them. But this only masks class exploitation under STEVE's regime. When Steve is in his highest stage of feudalism, he starts farming villagers for iron. He puts all the villagers in 1 sq block space for the rest of their lives.
The dictatorship of the Steve ends when HIS 2 week Minecraft phase ends, and Steve goes back IRL modern capitalism.
I don't own all the land in the village also I use mods to make most of the villages totally gigantic to the point where it feels more believable the villagers have their own economy. Also there are a mix of player-shaped presumably homo sapiens villagers and the homo Squidward villagers so there's not a weird racial undercurrent to the worldbuilding and the environmental structures tend to dwarf a single player's survival constructions, simulating the feeling of civilization. I also play awesome techno instead of the stupid sad Minecraft soundtrack. Also I have a mod that gives me a rocketship. And windmills. And a gun.