Beneath L.A.'s economy

Aside from the maids, nannies and gardeners employed by individuals, such businesses could include small restaurants, apparel manufacturers, carwashes, beauty parlors and so on. Individually, these businesses may not seem like much, but as Flaming notes, the number of workers in legitimate businesses in Los Angeles has fallen in the last 15 years.

Yes, much of this problem is tied to illegal immigration and economic desperation. Yes, dealing with the status of immigrants requires a federal solution. Despite that roadblock, the mayor and the governor should use their bully pulpits to make the social harm of the underground economy clear.

There should be incentives to go legit, beyond access to capital. Businesses could be offered amnesty for past transgressions. Business education programs could offer both strategic advice and help in obtaining capital for those willing to comply. If such efforts were even half successful, public attitudes about the underground economy could shift, the city and county would be on a sounder financial footing and Los Angeles would be a better city, even if lunch might cost a dollar more.