That isn't a gnome, that is a "nisse" they are little creatures surposed to live on farms and take care of the animals if you feed them porridge. If you neglect them however, or mistreat your animals they will use their magic to make your life a living hell.
At some point in history nisser became the helpers of Santa Claus (And not elves as you may think) Elves are wood spirits that dance mortals to death.
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Once I knew everything, then I got smarter, now the only thing I know is that I know nothing.
Strange how that worked out isn't it?