I’m hardly basing my theory on any observable actions. This is largely a theory based on me thinking what I could do if I were unemployed. And that’s hustle. For those of you that don’t know, hustling is traditionally referred to only in the context of prostitution or pimping. While that is one type of hustling, these days it can apply to any number of activities. Some may be illegal, while others not. But the idea here is that “hustling” is any kind of economic activity that you are not reporting to the government; either because you don’t want to go to jail or just don’t want to pay taxes or for them to know how much you make.

The national unemployment rate is over 9%. The underemployed rate is even higher. Even more people have left the labor force with no intention of returning soon. How many of these people are making money on the side?

I understand that many people that are unemployed want to work legitimate jobs and would never consider doing work under the table, or not reporting some income, or simply lying about some income to keep collecting unemployment benefits. But there are people out there that abuse the system. Here’s a made up example using me:

Let’s say I get laid off from my job and have to file for unemployment. Let’s also assume that I don’t report the income from this blog, and that the income is sufficient to live off of*. But because I’ve never reported it, the government doesn’t know about it. So I collect unemployment while still making tons of money. Morally that’s wrong, legally it’s wrong, and I don’t know how unemployment works but I’d probably either no qualify or should be collecting much less.

I do know one guy that does this. He got a job where I worked part time after his unemployment benefits ran out. He only wanted to work part time though because he spent most of his time doing something else where he was paid under the table. He made more doing that but not quite enough. Also, this employer provides benefits to part-time workers making it a big win for him.

Are my hypothetical self and this real life person the majority of the unemployed? Of course not. But you’ve got to at least wonder how many of them are out there. Even more, I wonder how could you even find out?

Photo: law_keven

*Fear not, I do report the income. And only a squirrel could live off the income from this blog.

Be Sociable, Share!

  By 		The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice.

categories: jobs