Wednesday, March 18, 2015

The Underground Economy

            The underground economy is a system in which those who can not find a full-time or regular job are paid under the table.  This way they do not report their income and therefore have no taxes to pay on it.  There are positives and negatives to this system.  A positive to this system is an increase in consumer spending, however, this is only a short term effect.  Because people  gain more money through the underground economy, more money goes back into the system, "boosting the economy" (Koba).  A negative to this system is that this system is often associated with dangerous illegal activities.  "Drug dealing" (Koba) is a main way of making money through the underground economy.  This economy is very well known and because it is growing, it is becoming more and more clear that there is a need for change in our regular every day economy.  This is one effect that is negative because it shows us what is is wrong with the economy but also very helpful when trying to determine how our economic system today needs to change.  


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