The underground Palestinian economy

Human ingenuity can find ways to deal with just about everything. Your entire territory is blockaded by a vastly superior military force? Approximately 1.5 million people still need goods they can't produce locally? It seems that smugglers in the Gaza Strip are using a vast network of underground tunnels to import everything from baby formula to cars to livestock. Some of the tunnels are small and dark, some have electrical systems and even telephones. Although Hamas is thought to benefit from it, the network appears to be a completely decentralized system, driven by supply and demand. Impressive, really.

Via BLDGBLOG

Share this

You are right, Israel is

You are right, Israel is God's chosen, and once we "slap them in the face" then God will take our protection away. As He is doing now. We are going down the toilet and giving our money away to terrorists is not helping. The Israelis were being attacked and attacked and nothing was said, then once they start attacking back, then "Oh no, they're killing innocents, they're wreaking havoc, destroying buildings"... what about the Palestinians who were attacking them first?! They were blowing up places right where the people were! The Israelis even said that if the Palestinians would just stop bombing, then they would. I could go on, but I won't. All I know is we should be supporting Israel like we always have. Because once we don't, we'll really be in trouble. More than we're already in.
Absolute Acai Berry

God is on the side with the most cannon?

The Jews and Arabs got along fine until the Brits invaded and took control of Palestine. The UN partition stirred the pot.

Half the US economy is "underground." Marijuana is one of the three largest cash crops in Washington, Oregon, and California. Many people in the building trades and other skilled occupations work sub rosa. Then there are the illegals.

Got references?

Half the US economy is "underground."

I would like to believe this figure--do you have any references?

The Wikipedia page on Underground Economy refered to an article from 2005 that claimed 9% in its open paragraph:

America has two economies, and one is flourishing at the expense of the other. First, there's the legitimate economy, in which craftsmen are licensed and employers and employees pay taxes. Then there's the fast-growing underground economy, where millions of nannies, construction workers and others are paid off-the-books, their incomes largely untaxed. The best guess as to the size of the output of this shadow economy is about $970 billion, or nearly 9% that of the real economy. It should soon pass $1 trillion.

By the way, the article continued with a naive statist bias:

In the process, the underground economy is undermining the effectiveness of the Internal Revenue Service, which is highly dependent on employees' withholding taxes. If the IRS could collect all the taxes it says that it is owed from the underground economy in a given year, then the current budget deficit would disappear overnight. And if the IRS could collect these taxes every year, then the nation would have surpluses as far as the eye can see.

I thought the idea was a little ridiculous that if the government increased its tax collection that they would stop borrowing or creating money ex nihilo and be content to keep the budget at its current size. I work on the assumption that those in government extract as much resources out of the economy as they possibly can.