A black market, underground economy or shadow economy, is a clandestine market or series of transactions that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, prostitution (where prohibited), illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy.
AGAIN... no taxes paid...
The shadow economy drives out legitimate industries that can't compete with the lower costs of illegal operations. Some black market players deliberately create shortages in legal goods to force people to purchase from them. The tax-free nature of the black market means the government loses revenue.
AGAIN... our government loses revenue...
EXAMPLES...
- Illegal drug trade
- Prostitution
- Human Trafficking
- Illegal currency transactions
- Forced Labor
- Personal Information
- Illegal Weapons sales
- Animals and Animal Products
- Alcohol and Tobacco
- Biological Organs
- Racketeering
- Counterfeit Medicines
- Copyrighted Media
- Sex Toys
- Essential Aircraft/Automobile Parts
SHADOW ECONOMIES ACCOUNT FOR 22.67% OF GLOBAL GDP...
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