The underground economy is the only free-market economy!

The other economy is turning into a welfare economy. It is also true that the underground economy does not pay any kind of taxes, but then they would get nothing in return for their taxes in any case. At least they are not a drag on the government and therefore the taxpayers. Can you say the same thing for the developed economies? I am absolutely confident that the underground economy would be willing to pay modest amount in taxes to the government if they were to see a direct benefit to their businesses. This is common sense! In contemporary world, taxes have become the ransom that you pay to the politicians to stay in business. Every four years they get more greedy and demand more of your income either in form of deficits (like the Republicans do in the US) or just raise your taxes like all Democrats do around the world. The justification for higher taxes is becoming less and less credible.

There was an interesting article in The Wall Street Journal on March 14, 2009 by Patrick Barta titled, “The Rise of the Underground”. It illustrates the understanding some people seem to have about the world beyond America and Western Europe. A welfare state is not the answer for high unemployment or widespread poverty. It makes people dependent and unproductive. This does not mean that the ‘State’ does not have any responsibilities towards them or that the self-employed do not any obligations towards the society. What it means is that there could be a good balance between the heavy-hand of the ‘State’ and an absolute anarchy in the market place. This balance defines the creative intellect of the elected representatives of the people. This quality in politicians has become a rare commodity these days! Governments around the world assume the tax revenues to be their personal property.

It is not practical for countries with large populations to have 80-90% working people under formal employment. This makes it easy for the politicians, the bureaucrats and the establishment to try and grab as much share of the national wealth as possible. Look at the United States of America, Republicans and Democrats; both are competing to be a bigger ‘Robin Hood’, notwithstanding their public pronouncements. In a $14 trillion economy, a $3.6 trillion federal budget is not just insane, it is criminal. What is so special about this group of bandits to give them such power over a civilized and enlightened society? They tax and you pay, period! You have little or no say in the matter. It is time not just for Americans but for all informed people to rethink about the role of their respective governments. The best way to do that is to learn more about other cultures and other emerging societies around the world.