The Underground Economy

"The underground economy is when people The shadow economy is a system composed of those who can't find a full-time or regular job. Workers turn to anything that pays them under the table, with no income reported and no taxes paid" (Koba 1). The underground economy is mostly people who have recently lost a job, or struggle to find a job, and take a job that pays in cash. For example someone could work with a friend who's job requires manual labor such as landscaping, or plowing. The underground economy could be beneficial because it would give people who just lost their job a source of income. It would also be beneficial because it gives blue collar workers money to put back into the economy. The underground economy could be detrimental because it causes the government to tax its citizens more to make up for the lost taxes the government didn't get paid. The underground economy also includes illegal ways of getting money such as, selling drugs, weapons, or becoming a hitman.