From Grok concerning the size of the Underground Economy:
The size of the underground economy in the United States can vary significantly based on different estimates and methodologies used for measurement. According to various analyses:
- Estimates from recent years suggest that the U.S. underground economy could be between 6.4% and 12% of the Gross Domestic Product (GDP). This means that a significant portion of economic activity is not officially recorded or taxed.
- Another source indicates that the underground economy might be around 8% to 14% of the GDP, potentially amounting to as much as $2 trillion in economic activity. This figure was discussed in the context of the early 2010s, suggesting a persistent challenge in measuring this sector accurately due to its nature.
- More specifically, for 2024, one estimate pegged the shadow economy at about 10% of the U.S. GDP, which would equate to approximately $2.5 trillion in untracked economic activity.
These figures show that while there is no exact number, the underground economy constitutes a non-negligible part of the overall American economic activity. The variation in estimates reflects the challenge of measuring activities that are by definition hidden from official scrutiny.
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I sold some firewood yesterday at what I felt was a fair price. After I helped load the truck, the woman offered me more than twice what I had asked. I did not take it but I did take some extra for helping load the truck. It got me thinking about the two-tiered payroll system that our country has. People are charging and making much more money that I feel is fair or ever received.
How do we make the payroll equitable in the country? We can eliminate the underground economy which is not paying taxes but using our services. Imagine the impact on our costs if we had to close schools, medical services and regular services because demand/customers has substantially decreased. Competition will bring prices down and people will actually appreciate having a job.
