VIDEO: What is the Shadow Economy & How does it affect me?

  • April 11, 2019

British Columbia’s shadow economy grew by a whopping 8.1% in 2016 – nearly twice that of B.C.’s official GDP, and four times the rate of Canada’s. But what is the “shadow economy” - and how does its expansion chip away at opportunities to increase prosperity for law-abiding citizens and businesses? In this issue of Policy Perspectives, David Williams looks at unreported economic activity in Canada, the reasons behind B.C.’s disproportionately large shadow economy, and how untaxed economic activity harms households and businesses through heavier tax burdens to cover the cost of non-compliance.