The High Cost of LA's Underground Economy

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LA's economy faces a "downward spiral" according to a new study by the Economic Roundtable. The nonprofit research group reports that the underground "cash economy" now employs 15% of the labor force in Los Angeles County. That means a growing number of employers are not paying their fair share for benefits and insurance. The rest of us make up the difference at a cost of $2 billion a year. Should employers be fined? Should the labor force be educated? What about illegal immigrants? We hear what that costs the rest of us and what might keep the "underground economy" from growing.
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Economic Roundtable's -Hopeful Workers, Marginal Jobs: LA's Off-The-Books Labor Force'

Los Angeles Times article on illegal immigration's effect on state, national economy



Warren Olney


Frances Anderton