The Shadow Economy is made up mostly of the poorest in our economy, those struggling to get by even if it’s a two-income household. The industrious working poor who struggle to pay their bills, even on two incomes, turn to the side-hustle to make it.
Over 50% of Americans have a side-hustle. What was once the oddity of the entrepreneur is now mainstream. There are a lot of factors that may have contributed to this, including stagnant income growth nationwide and the rising cost of living. But the fact is, most Americans are now using a side hustle to cover household bills because their day job is just not enough.
The side hustle has exploded in the American economy over the last decade, and the IRS has taken note and put us in their sights. Because apparently hard-working people are “bad” for the economy.
Not all side-hustles are part of the Shadow Economy, but many are. A side-hustle becomes part of The Shadow Economy when it’s paid for in cash under the table. The side-hustle is the growing movement in the United States of the freelance worker and gig economy. Sometimes it’s on the books, but oftentimes, it is not. And here is where the “side hustle” meets “The Shadow Economy” and becomes a means for those who are pinched in our struggling economy to get by.