Any extra thoughts comments and supporting points on this opinion? extend and utilize info and make analyzation on underground economy.

The underground economy refers to economic transactions that are deemed illegal because they are being traded unlawfully or are not being reported to the government properly. It is hard to say how big the underground economy is because they are not complying with government reporting. However, money can be tracked that is not recorded in transactions to help gather statistics. It is estimated that the underground economy was $2.5 trillion in 2021. Underground economies can be either harmful or helpful. In developing countries, the uncollected tax revenue can slow economic growth. However, participants in underground economies who retain income that would usually go to taxes can boost economic activity and stimulate demand. Some goods that are deemed underground include marijuana, cigarettes, human trafficking, copyrighted materials, endangered animal species, antiquities, and human organs. People participate in the underground economy for a variety of reasons. They can try to obtain things that are illegal to get, the ability to avoid taxes, labor laws, and administrative paperwork (Kenton, 2022).

Underground economy may grow when there is a recession. It may shrink when there are increased penalties for tax evasion. Many people who work for an underground economy may do so for a variety of reasons. They can avoid government fees and licensing requirements, labor union involvement, and taxes. Some people work in the underground economy as a second job, and some may not have a mainstream job at all. If they don't have another job, they may work in the underground economy due to lack of skills, social networks, or documentation. The underground economy is a controversial topic. Some people see the underground economy as a threat to social welfare. Since there are no taxes paid, it reduces the amount of money available for social programs. The workers also do not receive the legal protections (Hall, 2023).

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