Edward Hugh speaks to PBS about Spain’s underground economy

Edward Hugh clearly doesn't live in the real world. In Spain the 'black economy' IS because of the taxes being high and not because those cultures 'like to cheat'. Some many but on the whole it is because social taxes for Autonomos and PYMES (self-employed and small to medium sized businesses) and that IVA (Valued added tax) was paid up front causing severe cash flow problems to many.

The other part of it is because Unions and socialist governments have left such an inflexible labour market that if you are unemployed your dole could easily run out whilst you are looking for work which leaves many with no option but to work in the black or see you and your family starve.

Even, during a recent interview on Canal 9 by the head of the Valencian Autonomos association made this very clear. The fault is high taxes, unions and socialism and not the small businesses and self-employed.

This report is another case of an economist being too far removed from the real picture to have a valid comment to make.