• Economic activity yielding income that is not reported to the tax authorities.
• Economic production that violates one or several other mandates, such as compulsory government
licensing and rate making, inspection and label laws, labor laws, government regulations of
agriculture, export and import controls, government control over money and banking,
governmental control of energy production and distribution, and countless others. Violators may
or may not evade taxes, but they all work illegally, hiding from swarms of government inspectors.
• Productive activity by transfer beneficiaries who draw Social Security benefits or receive public
assistance. Their freedom to work is severely restricted.
• Productive activity by illegal aliens without residence status. They may pay income taxes and
other taxes, but must remain underground for fear of deportation.