The Soviet Underground Economy

 I've been reading up on the underground economy in the USSR. I think we'll have a growing and thriving shadow economy in the USA in the future--in fact, I think it's going to be the next "big thing". The mainstream economy is full of debt and regulation and traps. That woman I wrote about who has $250k in student loan debt is a great example (if that story is true and is not propaganda).

There's really not much info out there on the subject. Here's one fairly short paper: The Russian Underground Economy in Transition. That paper is an example of the literature. I don't think it's necessary to do an extensive survey because the scenario corresponds to stereotypical descriptions of a black market economy. Communism was a dysfunctional system, so "black market" entrepreneurs jumped in to fill the gaps. Eventually the government tried to liberalize the economy to incorporate the shadow economy (and tax it), but it didn't really work out.

Their experience is probably a good indication of what will happen in the years ahead. As western governments turn more soviet and attempt to control every aspect of life, the system will just crumble and people will shift their energy into shadow economy activities. The mainstream system will be a husk in just a handful of years.