The Underground Economy

The underground economy is a hidden, in the shadows economy composed of those who can't finda full-time job. These people working in the underground economy are desperate for money, which is why they opt into these illegal fraudulent working conditions. Since workers are payed under the table they don't have to report their income, therefore they do not have to pay taxes. There are pros and cons of the underground economy. The underground economy nettted roughly $2 trillion last year. This means $2 trillion is left untaxed with nothing going to the government. Also, the workers a part of this underground economy are not receiving social security or health benefits. The only pros of the underground economy are that it is fairly profitable, evident by the two trillion it netted last year, but also because it is another outlet for minimum wage workers to snag another job. Also, it is beneficial for the owners of the establishment because it is cheaper for them. Though both the pros and cons entail illegal activity.