Life Goes On

Life Goes On
The banks and the Auto companies are getting big bail outs and still laying people off. Loans are harder to get but they happen despite what the newscasters tell us. Business seems to be bad for everyone. I don’t see anymore homeless people than I did before. I don’t see people selling stuff on the street corners. The people selling stuff at tables in vacant parking lots are no more pervasive than they were before. Is it possible things are not as bad as they sound on the news?
The unofficial economy in the USA has in the past probably been smaller than that in some parts of the world. I expect it will grow with the ongoing depression. I have a theory that anyone with a ladder on a pickup truck is part of the unofficial economy. Count the ladders as you ride around to judge the growth of this sector. Since home repairs are not deductible, homeowners do not need receipts for work done. This makes an easy choice of paying a little less for a repair and not reporting the payment. Most of these repair people probably report enough income to cover their expenses.
If we have an economic stimulus that requires companies to cut pay and lay people off, how much will this help the economy? If the laid off people draw unemployment and work unofficially on the side, who will pay the taxes to support the stimulus?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com