We could have a folk club on every block and people looking for folk performers for all of their social events.

We do not.

With more appreciation of the music will come more demand more venues to make money and more private events.

Has to work.

Glad to hear of free folk events. Had I more time I would do a web page listing them as I do now for wassail. Keep up the good work.

But, still needs to expand.

I drive to events with the car with gas paid for by the occasional donation not a fee. As I say....build something someone appreciate and they will throw money and they do. I dont have to charge a fee.
I have a collection slot on all my vehicles.

All comes from appreciation of the art. As it will from a greater appreciation of the folk music.

Professional musicians charging fees benefit from scarcity.

Simple economics. Keep your product scarce and you will get more money and more work. So they are naturally opposed to more performers, charging nothing serving more individuals which will mean greater competition which they would naturally avoid.

There is no reason you have to pay for music. I think that is clear.
Simply sitting there playing or singing in itself has no cost. If I publish a book I have to print it. So there are absolute costs. I can sit down and play a tune anytime and no money changes hands. Immagine that. And I would rather think of it as music than monetary value.

I guess some out there count the coins while playing....but why?

Conrad