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Zach Bender
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if i grow vegetables in my backyard and i share some of the harvest with friends, and if my friends share some of their stuff with me, we are engaging in an informal economy that any government would like to tax. but in order to tax this activity, the government first has to monetize what those of us engaging in this informal economy might not have chosen to monetize. the transition occurs when we get beyond friends or when we ourselves start monetizing our exchanges. my backyard farm cannot make the transition to a sustainable commercial operation without working through this "formalization." this can occur organically, or i can be forced to seek capital investors or borrow money from a bank. if i go the organic route, at what point am i a "scoundrel" who "cheats" those who are engaged in a structured wage economy.
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Nov 29, 2012