The most pernicious aspect of the cash or underground economy is the resentment it breeds in the people. If you are playing by the rules, but others are not or do not, then the taxes you pay are not equally born by all.
Such a circumstance is not sustainable, it some think they are getting the short end of the deal, then they will find a way to even up the playing field.
This issue is especially pervasive in the small construction business. More regulation/regulators just makes it worse.
The current Administration picks and chooses which laws they will or will not obey.
No surprise if ordinary folks notice and figure that what is good for the gander is good for the goose.