20% of Spain’s economy is underground.

Incentives matter: taxes, regulations, labor laws, all of it matters. Anything that makes doing legal business harder or more expensive drives business underground. This is just a variation on the Laffer Curve as applied to businesses and as applied to regulations, labor, whatever.

This is not hard. Tax the rich and they will disappear. Unintended consequencesincentives…and order always emerges.

-JD Cross