Black Market Economics - What Drives the Underground Economy?: Why So Important

The video discusses the underground economy, highlighting its impact on government revenue, labor statistics, and fiscal policies. It explains the challenges in measuring the black market and introduces methods like forensic finance and energy output analysis. The video also addresses the effects of illegal labor on the economy and workers' rights, emphasizing the need for accurate economic models.

Why is it important for economists to account for the underground economy in their models?

What impact does illegal labor have on the overall labor market?