Even the scariest Halloween costume isn’t as frightening as the consequences of economic illiteracy.

In January, a progressive eatery in Minneapolis came up with a novel way to protest immigration raids. The Modern Times Cafe decided to offer free meals until ICE left the city. At the time, it had been in business for 15 years. Owner Dylan Alverson decided that enforcing the law represented a crisis he couldn’t ignore.

“I guess it just has come out of the fact that it has felt like we’re living in wartime. It’s been a wartime for a lot of people in this neighborhood and in the city,” he said at the time.

He changed the restaurant’s name to Post Modern Times Cafe.

“I feel happy that I live in a community that is focused on real changes that we can make in response to this, taking care of each other,” server Andrew McLemore said.

But after an initial influx of donations, money ran low. In July, Mr. Alverson announced that the restaurant would resume charging customers.

The store’s troubles went beyond money. “Free” food attracted long lines. Previously loyal customers were crowded out. Unsurprisingly, those willing to stand in line for hours for a free meal sometimes weren’t the most savory crowd. That reduced the quality of life in the neighborhood. Those near the cafe started finding used syringes and people passed out in their front yards. Others had their garages broken into.

Recently, this saga reached its inevitable conclusion. This month, Mr. Alverson said the restaurant would soon close.

For several years, “I’ve been trying to prove that Modern Times can continue to exist,” he wrote on Instagram. “I’ve exhausted every option without compromising the core fundamentals that make Modern Times what it is.

“Because of this, we have made the choice to close at the end of the year.”

Failure can be a great teacher, but unfortunately, Mr. Alverson appears to have learned the wrong lesson.

“The only way for places like Modern Times to exist in the future is to actively challenge the reasons why it can no longer exist,” he concluded.

The reason it no longer exists is that Mr. Alverson ignored reality. Vibes and emotions don’t pay the bills. As it turns out, suppliers prefer cold, hard cash. Paying customers don’t want to wait hours for food. Employment isn’t the same as volunteer work.

Mr. Alverson is free to spend his own time and money — and the funds people freely give him — as he pleases. But ignoring basic economics ends poorly, for restaurants and for nations.