BLACK ECONOMY; DEAD CHINAMAN

Naples

There is LOW unemployment in Spain.

Most of the so-called Spanish unemployed have jobs in the 'black economy'.

This might explain why Spain does not have major riots.

In Spain the 'black economy' is said to be 19% of the official gross domestic product.

(FT.com / Europe: Hidden economy)

The Spanish jobless rate "is a fiction."

There are problems when a country has a large 'black economy'.

1. The goverment does not get social security contributions from the people in the 'black economy.

2. The 'black economy' is often linked to illegal immigration and sweatshops.

Bangkok

The small town of Prato, in Tuscany in Italy, has a population of 180,000 people.

There are 35,000 Chinese living in Prato.

Half of them are illegal immigrants.

Prato has Chinese marriage agencies and Chinese massage parlours.

The Chinese in Prato are in the garment industry.

The Chinese workers work long hours.

29 year-old Shi Songbin was an illegal Chinese immigrant found dead in Prato.

He died from an overdose of drugs.

The purpose of the drugs may have been to help him work long hours in a sweatshop.

(FT.com / Europe: Hidden economy)



Many Chinese emigrate to places like California.

"Migration involves incurring large debts to 'snakeheads,' who arrange for transport and entry and often brutally enforce payment.

"Because of their illegality and constant pressure from their creditors, Chinese immigrants often accept jobs that pay far less than the U.S. minimum wage and violate American labor standards, and they have no effective legal recourse."

(Immigration in a Changing Economy: California's Experience ...)

The Chinese make up the largest Asian population in the United States today.

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