The sequestration is rippling through the economy, and Washington seems unwilling to do their job and place certainty back into the economy. The Washington paralysis has not stopped the economic recovery taking shape even though the contributing factors to the recovery are atypical in a developed nation such as the United States. The private sector is pulling the slack and some from the drag of sequestration, and that is normal part of the economic model. However, the $2 Trillion dollar shadow economy as reported in USA Today is the underpinning or support for the economy for work and services being completed paid by cash with no taxes being paid. This phenomenon is a result of a poor job market and people willing to work in different jobs being paid cash under the table. Government spending cuts are being offset by the boom in the housing market and consumer spending. The unemployment rate was 7.5% in April. The unemployed are taking advantage of the underground or shadow economy … [Read more...]