The Underground Economy

The underground economy, which is also called the shadow system is, "a systen composed of those who can't find a full-time or regular job. Workers turn to anything that pays them under the table, with no income reported and no taxes paid"(Koba 1). The underground economy is both beneficial and detrimental to the economy.
The shadow economy benefits the economy as a whole because it is apart of consumer spending. Whether the money was recieved under the table, or through corporations, consumers are still using that money to buy goods, which overall helps and boost the economy(Koba 1). The underground economy is also beneficial because it helps citizens who might not have other wise gotten a job to receive employment under the table.
The underground economy is also detrimental to the economy. According to Marc Koba, "shadow economies are usually associated with illegal activities, such a drug dealing". The shadow economy, although it is not it's purpose, can be used as a segway to unlawful activities. Also, the underground economy hurts the economy by not providing sufficient taxes, "about $500 billion in taxes were lost last year because of unreported wages"(Koba 2). The shadow economy is also harmful because tax dollars would be lowered if there was no underground economy and shadow economy workers are at a higher risk for low salaries: "Taxes could be lower if the government where able to capture the underground economy instead of raising taxes on those currently paying the various income and payroll taxes...People who do these types of jobs run the risk of getting exploited with lower pay or not being paid at all"(Koba 3).
Overall, the underground economy has both positive and negative aspects to it. It creates consumer spending and helps people to get jobs, but also raises taxes and works with illegal activity.

Net Neutrality

Net neutrality is essencially keeping free speech on the internet for all viewers, publishers, and commenters. Google defines net neutrality as "the principle that Internet service providers should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or websites." net neutrality is imporatant to consumers because it gives them more say on the internet and allows them to have free speech without being punished. Net neutrality are also important to corporations because corporations would not be able to copete with larger corporations if they had to pay for better services such as internet connections. No business has the ability to be the best forever. This is a natural cycle that could potentiall by upset without net netrality. 

The FCC controls neutrailty on the internet by attempting to control and regualate the information that is provided on it(www.money.cnn.com). The FCC wants to have the power to impose rules to regulate content and reclassify internet services according to newsmax.com. 

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Spoils vs. Merit System

 In Today's political economy, there is both the merit system and the spoils system. The spoils system can be defined as "the practice of filling appointive public offices with friends and supporters of the ruling political party"(dictionary.com). The merit system can also be defined by dictionary.com as "a system of policy whereby people are promoted or rewarded on the bias of the abolity and ashievment rather than the seniority, quotas, patronage, or the like." In history, there are many examples of both the spoils system and the merit system being used.


Andrew Jackson took office as President of the United States in March of 1829 after winning the election of 1828. Jackson wanted to defy the governmental policies of hiring federal employees by trying replacing them with people that were less qualified for the job and were rather closer friends of Jackson. The merit system was created to balance out the spoils system and was established, "to improve parts of the governmental work force previously staffed by the political patronage or spoils system, which allowed the political party in power the opportunity to reward party regular with government positions"(legal-dictionary.thefreedictionary.com).

The merit system began to unfold after the shooting to President Garfield. The purpose was the get the attention of the government and how the United States needed a reform in the government. Two years later in 1883 the Pendleton Service Act was created which, "set up the first civil service system for federal employees to guard against patrogange appointments"(www.smc.edu). 
In today's political economy, the spoils system is still in effect. According to www.shmoop.com, "Only about three percent of federal employees today are appointed by the president or highered outside of the formal merit-based process". Today, most businesses use their own criteria based standards for hiring employees and politicians still reward/bride campaign workers with governmental jobs for their support of their party.