Off the Books: The Underground Economy of the Urban Poor

Ghetto Capitalism

Sudhir Venkatesh's new book unravels the mystery of the underground economy.

By Patrick Radden Keefe
Posted Friday, Dec. 8, 2006, at 6:07 AM ET

America's underground economy stubbornly resists reliable study or measurement. Its overall size may be anywhere from 5 percent to 10 percent of America's GDP. Estimates of annual unpaid taxes range from $200 billion to $500 billion. Even the low ballparks are high. So, why do the dynamics remain so mysterious?