Your thoughts on the underground economy....

Discussion in 'Economy' started by Amanda, Apr 16, 2009.

  1. Amanda
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    Amanda Calm as a Hindu cow

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    Has anyone else read the opinion piece by/about economist Sudhir Venkatesh in the latest issue of Forbes?

    It talks about how the recession is affecting "underground workers" like prostitutes, drug dealers, and purveyors of stolen goods.

    I enjoyed his insights into gang life in "Freakonomics" and from the article it says there will be a sequel.

    Any thoughts?



    For me... I really feel for people living on the fringe of society, even while I might despise what they do, I can't but help see Americans that really want to work and make a difference, if only in their own lives.
     
  2. strollingbones
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    strollingbones Diamond Member

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    the underground economy consists of a lot more than that...many people "barter" ever chance they get....exchanging goods for services or other goods....doctors do it...lawyers do it...anyone who can circumvent taxes by bartering does it..not just druggies and hos
     
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  3. sealybobo
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    sealybobo Diamond Member

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    Sometimes I am amazed at how much money broke people have for cocaine, pot, eccstacy, cigarettes, booze.

    Remember Too Short's song "there's money in the ghetto"? There is. A lot!
     
  4. Amanda
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    Amanda Calm as a Hindu cow

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    That's a really good point! Thx B. :)
     
  5. Amanda
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    Amanda Calm as a Hindu cow

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    But I'm sure as a lib you're aware that they are in despair. They are trying to make their pain go away. Do you see that? It's not waste to them if they feel better if only for a little while.
     
  6. RodISHI
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    RodISHI Gold Member

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    I would not say it is just to circumvent taxes when someone trades or barters. More like when there is no money one trades their services/goods with another who has something they need or can use.

    I've bartered my artwork and other work many times over the years. I have also included the majority of those trades in my end of the year income statements.

    Although I did not include a trade for the full bred dogs I did some years back. I traded a little old lady her some backhoe work for a couple of Pyre pups. The pups did not exactly have a set dollar value.

    Neighbors, family and friends trade helping each other all the time. Not sure how the government could set a tax on people helping one another. I am sure they would if they could though.
     
  7. Amanda
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    Amanda Calm as a Hindu cow

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    I agree with this. Some certainly would.
     
  8. Peejay
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    Peejay BANNED

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    It does have an impact. The dark side of the economy is huge. Dealing in cash is huge. Barter and illict trades are huge. Some estimates say that this part of the economy accounts for as much as a third of the entire economy. I would guess that drugs account for a large share.

    An example: A buddy of mine runs a pawn shop. He does the normal pawn thing but he buys and sells probably a third of the mechandise straight cash, no reciepts, no taxes. He buys nearly ALL gold that way. His gold buyer pays cash. It's a ton of money and there is no way to trace that gold once it's gone.
     
  9. neurosport
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    neurosport BANNED

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    underground economy is proportional to the inefficiency of the state-run economy

    instead of one good economy we have two busted ones

    i just wonder if raising the taxes enough will drive the government itself underground :)
     
  10. Old Rocks
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    Old Rocks Diamond Member

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    They are in a self made despair. I have known many people that came from the rough side of the tracks and made something of themselves in spite of their origins. And an equal number that had all the advantages, and ended up 'ghettoizing' themselves.

    While many are held back by lack of knowledge, all too many of these same people resist any effort to aid them in aquiring the requisite knowledge to make something of themselves.
     
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