Underground Economy

The underground economy is the part of a country's economic activity that is unrecorded and untaxed by its government. In the article "$2 Trillion Underground Economy May Be Recovery's Savior", it states that the growing underground economy may helping to prevent the real economy from sinking further. The underground economy is beneficial in some ways because it includes firms that hire hourly or daily construction labor, information technology specialists and web designers. Many who have a job that does not pay enough take on another job that pays under the table. The effects of the underground economy are larger than people perceive it to be, and the result is less tax money paid to the various levels of government. Though the underground economy can be beneficial, it can also be detrimental. In the article it states that "shadow" economies are usually associated with illegal activity, such as drug dealing. Another downside is that people who are not on the books do not get social security or health benefits. People who do these types of jobs run the risk of getting exploited with lower pay or not being paid at all. People are running out of patience when it comes to finding a job and losing income.