Inside the Trillion-Dollar Underground Economy Keeping Many Americans (Barely) Afloat in Desperate Times
Economist Edgar Feige estimated in 2009 that unreported economic activity was costing the US government $600 billion in tax revenues, and the growth in that number—from the Internal Revenue Service’s 2001 estimate of $345 billion—indicates the growth of the informal economy. Reporting on Feige’s work, Dennis Chaptman noted, “As the recession deepens and regular employment opportunities decline, unreported activities tend to grow, thereby swelling the tax gap and worsening the government’s budget deficit.”
BigBatUSA: The underground economy is distinct from the illegal economy, itself considered a $2-4 trillion a year global economy. The underground economy, also known as “System D” is global in nature. The above article focuses only on the USA.
BigBatUSA: What used to be “conspiracy theory” is now mainstream knowledge and creeping out into the public consciousness. Those labeled “lunatic fringe” twenty years ago are now being seen by growing numbers as prophets with integrity. 2012 might be the tipping point year. Crime takes many forms–when government and banking crime is routine, one has to appreciate organized crime in a new context.
Powered by the intellect and experience of David Walker, former Comptroller General of the USA (in charge of the General Accountability Office), this is perhaps the only really serious website on creating a Balanced Budget. It suffers from a failure to recognize corruption as the root cause or the Automated Payment Transaction Tax (APT) as the obvious solution that also allows the REPLACEMENT of all taxes including personal income taxes and small business taxes, but it is an excellent foundation for thinking about our financial challenges.