The second economy, described by the bottom eight equations, is a cash only economy although it does admit to a certain amount of barter. These transactions are never reported and taxes are not paid on them. Usually the price of services in the second economy is lower than if it is provided under the first economy," William answered."What do you mean?" Well, suppose that I have a car towed for some reason. If I pay the guy with a credit card, then he has to declare it and pay the taxes on it. That could be as much as half of what he receives. The money is directly tied to him receiving it. On the other hand, if I pay the guy in cash, he doesn't have to report it since there is nothing tying him directly to the money. That means he doesn't have to pay any taxes on it. He can charge only three quarters of the legitimate price and still have more money in his pocket." How big is this second economy?" About the same size as the first economy," William answered with a smile.Stunned, Lucy. That's when I realized that we were seeing completely different things. I could see nothing where she was standing and she apparently couldn't see the light from around the panel door in front of me. She quickly realized what was going on also. Before we could say anything, I saw a lighted handprint show up on the wall in front of me. I could tell that Megan probably saw the same thing, in a different color, on her side. My panel glowed white. I assumed hers glowed purple.I placed my right hand over the glowing hand print. I heard a barely audible click, followed by a briefly visible flash of light, and a panel opened in front of me. Inside was a small cubicle, with another glowing handprint on the back wall. I saw Megan watching me. She had not done anything with her side yet. I considered walking over to her side to see if I could open her panel, or if they were specific for a particular person. Then I realized how stupid that thought was; I couldn't see the colors or handprint on.
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