ABSTRACT
This chapter looks at inflation, the optimality of resource allocation, economic growth and income distribution. The writer has little difficulty with the moral aspects of a normal country's second economy. Second Economists (2E) do not break the law for conscience' sake, but for money. So long as the 2E does not steal, his customers and employees only benefit from his activities, and he hurts no one but those vast abstractions the Taxpayer, the Law and the Plan. "Society", whatever that means, is his only victim. The police are, and should be, lenient towards victimless offences; but just because of that they are open to bribes. There has been far too much talk of its economic merits, and so gross a failure to take account of its moral consequences is actually unscientific. For other people's values are facts, and must be studied as such. Summing up the economic balance, the 2E has very substantial faults.
