What is the shadow economy?
The underground economy, also known as the informal economy, includes all those economic activities that are not officially registered. This phenomenon is particularly relevant in Italy, where the underground economy is estimated to amount to about 182 billion euros. But what does it actually mean? In essence, it is a set of transactions that escape fiscal control and labor regulations, creating an environment of unfair competition and depriving the State of significant tax revenues
.
The causes of the underground economy in Italy
The reasons behind the emergence of an underground economy are manifold. Among the most significant are excessive bureaucracy, which often pushes small businesses to operate outside the law to avoid excessive tax burdens. In addition, the economic crisis has led many people to seek alternative sources of income, often resorting to undeclared jobs. This phenomenon is amplified by a work culture that, in some areas of the country, tends to justify operating outside the regulations
.
The consequences of the underground economy
The implications of the underground economy are multiple and far-reaching. First of all, it contributes to a decrease in tax revenues for the State, which translates into lower investments in essential public services such as health and education. In addition, the underground economy fuels job insecurity, since workers do not have access to fundamental rights such as paid holidays and unemployment benefits. Finally, this phenomenon creates a climate of distrust between companies that operate legally and those that do not, damaging the entire economic fabric
of the country.