... so there is no way to make a living selling only books, even if you are the biggest and most popular author in all the country. And there is NO WAY to write books for children or poetry and make a living. So the government supports writers financially.

It is not a high salary, and it quite competitive, you have to apply and not everyone gets it, and usually you have to have "proven" yourself before, i.e. published 1-2 books. BUT it is a steady income and that is so important to have. And most of us supplement it with freelance work.

Step 1. Learn Icelandic.