By James Surowiecki, The Financial Page @ newyorker.com, April 27, 2013
Americans may have made two trillion dollars in off-the-books, unreported income last year. Did the recession drive them to the gray economy?
[.....] It’s a huge number: if the government managed to collect taxes on all that income, the deficit would be trivial. This unreported income is being earned, for the most part, not by drug dealers or Mob bosses but by tens of millions of people with run-of-the-mill jobs— [.....]
Measuring an unreported economy is obviously tricky. But look closely and you can see the traces of a booming informal economy everywhere. As Feige said to me, “The best footprint left in the sand by this economy that doesn’t want to be observed is the use of cash.” His studies show that, while economists talk about the advent of a cashless society, Americans still hold an enormous amount of cold, hard cash— [.....]