The Underground Economy Is Unravelling

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.

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Mary Combs
Mary Combs
4 months ago

It depends on what you include in the underground economy. Theoretically if I swap a gallon of milk for a couple dozen eggs, both sides of that transaction, in theory, need to be declared as income. Is there a difference between barter between neighbors versus a farmer selling eggs etc at the farm gate for cash? I think there needs to be some definitions agreed that take local bartering off the income tax table.

Thirdworldfarmer
Thirdworldfarmer
4 months ago
Reply to  DRenegade

Let us start listing the income of tax paid employees & their BENEFITS value should be eye opening & like many have said what do they produce?

Lee Vail AKA Kalev Efrayim
Lee Vail AKA Kalev Efrayim
4 months ago

Why should I be taxed for services I don’t need or want?

DWEEZIL THE WEASEL
DWEEZIL THE WEASEL
4 months ago

Another elephant in the room is all of the money these wetbacks wire back to Mexico and other south-of-the-border countries, which keep their economies chugging along. I can only wonder what will happen to these Third World septic tanks when the flow of dollars dries up. In addition to our border walls, we will need minefields. The area denial munition GRIT comes to mind. Sporty times are definitely ahead. Bleib ubrig.

Thirdworldfarmer
Thirdworldfarmer
4 months ago

Precisely as I heard it said recently, they use our economy to make money then go back & build a new nice house with modern amenities to live on

Randolph Scott
Randolph Scott
4 months ago

When dollars dry up we better be armed up and willing to defend ourselves. That will be the real SHTF time.

Quatermain
Quatermain
4 months ago

The 16th amendment only allowed for the taxation of income. If it is not taxable, then, it is not income. That throws a different light on it. Since Congress alone possesses that power, where does it leave the states? What is their legal basis. We have accepted this situation, without question, for far too long.

Steady Steve
Steady Steve
4 months ago

The ownership of these companies needs to be arrested and do prison time. It would be great to see the board of directors of a large corporation perp walked. Income tax is theft of our labor and only exists to pay interest on the fake money the Fed conjures into existence. This con must end either by collapse of the system or revolution.

General 'Buck' Turgidson
General 'Buck' Turgidson
4 months ago

In the Los Angeles area alone--30% minimum, of the economy is underground. Independent auto repair shops… 40%. Even brand name car dealerships have 30% illegal employees working in the back lots. There are entire sections of Los Angeles where 80% of the population is illegal--and little to no English is spoken. Whole areas in the Central Valley of California is 50% illegals. The problem is widespread throughout the Pacific Southwest.