The size of the informal market makes it the second largest economy in the world behind the United States. With the IB Economics class we often discuss the limitations of measuring the size of an economy and the parallel or "hidden" market is a major reason. Disregarding illegal behavior such as drug and arms dealers, the informal economy is a significant factor of employment and distribution of goods, and it's out in the open.
Robert Neuwirth's new book, The Stealth Economy, discusses his experiences with street vendors from all over the world. Check out the Ted Talk to get a good synopsis of his book and the scale of the informal economy.
Would Adam Smith approve? Would Karl Marx? Should we encourage more business to be operated in this way? Share your thoughts in the comments section.
Thursday, September 6, 2012
Monday, September 3, 2012
Economic Freedom Index 2012
The most recent study of Economic Freedom by the Heritage Institute offers some good insight into where businesses are investing. Why is Hong Kong and Singapore so well ranked? Which policies do they employ that help make this happen? Where does your country rank?
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