Shadow Economy to the Rescue?

Even in developed countries like the United States, as much as 10 percent is in the so-called shadow economy. But when times are hard, the figure can rise to as much as 40 percent. In times of crisis, people are very creative in looking for ways and means of making both ends meet. _MT

By the time Americans tally all of the local, state, and federal taxes they must pay, they might easily find that they are paying over 60% of their hard-won income to the bottomless pit of an insatiable bureaucracy. The cleverer ones may very well begin to consider alternatives.

The size of the shadow economy varies from region to region. In northern Europe and Scandinavia it represents between 10 and 18 percent of official GDP. In Mediterranean countries such as Portugal and Italy, the sector makes up 20 to 25 percent.

Many former Communist EU countries have shadow sectors in the Mediterranean range. But in Estonia, Latvia, Romania and Bulgaria the estimate clocks in at 36 to 39 percent.

The figures for EU neighbours can be much higher. In Belarus and Moldova, around half of economic activity bypasses the state. In Ukraine, about 57 percent. In Georgia, 68 percent.

The existence of a shadow economy up to the 25 percent mark can improve ordinary people's quality of life, the Austrian academic believes. _BW

Certainly the use of barter will increase. Bolder communities will explore the use of alternative currencies, although in the current quasi-fascist environment one must be very cautious of the IRS, Homeland Security, BATF, and other corrupt and hyper-zealous units of the Obama / Pelosi reich.

Corruption within the US government is growing, perhaps eventually to rival corruption levels in the third world. Should the O / P reich continue to ravage the productive sectors of the economy for much longer, the damage will no doubt be deep and irrevocable.

Consider the ways in which you can protect yourselves and your loved ones from the governmental wrecking ball. Your clear thinking and timely actions may prevent the worst of what is coming.