(Roughly) Daily

The informal, or shadow, economy (and here and here)– economic activity, both casual and criminal, that is neither recorded nor taxed– is a feature of life virtually everywhere. Dorothy Neufeld (in Visual Capitalist) unpacks the league table…

The world’s $12.5 trillion informal economy covers nearly every corner of the world, seeing the highest concentration in emerging economies.

Yet in absolute terms, China, the U.S. and India are home to the largest black markets—covering everything from street vendors to illegal activities that evade governmental oversight. Overall, this generates lower tax revenue and poorer working conditions given the absence of worker protections, leaving millions exposed to poor working conditions…

… Since 2004, workers employed in China’s informal economy have nearly doubled, reaching approximately 200 million.

Driving this trend are jobs are found in the labor-intensive services sector, such as drivers, nannies, and roadside repairmen. As a result, China’s income tax revenue accounts for about 6% of GDP—far lower than the 24% OECD average.

Ranking in second is the U.S. shadow economy, valued at $1.4 trillion. Overall, states with lower real GDP and higher regulatory burdens tend to have more active underground economies.

Meanwhile, Brazil leads in Latin America, with a shadow economy valued at $448 billion. In Europe, Germany is home to the largest at $308 billion, equal to 6.8% of GDP…

Ranked: “The World’s Biggest Shadow Economies.”

* Rohinton Mistry, Family Matters

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As we contemplate commerce, we might recall that it was on this date in 1988 that three 50 pound snapping turtles were found in a Bronx, New York sewage treatment plant. They had probably been pets that were flushed down the toilet when very small. One might imagine that this story helped spawn the Teenage Mutant Ninja Turtles, but the Ninja Turtles are actually a bit older than that. Comic book artists Kevin Eastman and Peter Laird published the first Ninja Turtles comic in 1984.

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