Black markets are the underground markets that operate outside “the legal system in which either illegal goods are sold or legal goods are sold at illegal prices or terms.” Black markets are characterized with high prices, violence, and defective products. The high prices in black markets especially in comparison to legal markets, comes from the risk that the supplier is undertaking. Suppliers are taking the risk of “arrest, possibility of a fine or prison sentence, and so on.” The violence that many times characterizes black markets stems from the fact that there are “no legal channels for the peaceful settlement of disputes” and the party that does not follow through with the agreement must be made to follow the agreement, many times through the use of threats or force. Black markets undermine and undercut legal markets making for a weaker overall system in markets where black markets are more common.
Black markets hurt governments, legal sellers, and buyers. One of the most common causes and also one of the most hurt is the taxation system of the country that the black market operated in. Black markets are non-taxable and thus the government loses valuable taxes from the illegal gains. Black markets “account for a significant portion of GDP (gross domestic product) in many countries” and it is estimated that the size of the United States’ black markets to be almost 8-10% of the gross domestic product of the United States. Not only do black markets damage the economic stability of the countries they operate, they also hurt the legally acquired economic gains of competing marketplace sellers. Legal sellers cannot compete with the prices or products of black markets and thus they lose gains that could be made without the o...
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...vely, whatever is admirable—if anything is excellent or praiseworthy—think about such things.”
Works Cited
Gwartney, J. D. (2013). Economics: private and public choice (14th ed.). Australia: South-Western Cengage Learning, 78.
Ibid., 78.
Ibid., 78.
Ibid., 78.
Davidson, C., Martin, L., & Wilson, J. (2007). Efficient Black Markets?. Journal of Public Economics, 91(7-8), 1575-1590.
Ibid.
Horwitz, S. (2004, June 8). Cigarette Smuggling Linked to Terrorism . The Washington Post. Retrieved November 5, 2013, from http://www.washingtonpost.com/wp-dyn/articles/A23384-2004Jun7.html
Whatley, S. (2009, July 24). North Korea Executes Christian For Distributing Bible: Rights Group. The Huffington Post. Retrieved November 5, 2013, from http://www.huffingtonpost.com/2009/07/24/north-korea-christian-exe_n_244340.html
Philippians 4:8-9 (New International Version)
The final chapter of The New Jim Crow reviews the manner in which the Black community might respond to the racism that exists today. Some research implies that we in America have reached a point of attrition as to incarceration and the positive effects outweighing the negative effects of marginalization and collateral damage to the community. By some research, the "War on Drugs" procreates poverty, joblessness, family breakdown, and crime.
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
Here in this book, Eric Schlosser is keeping with the long tradition of the so called, “yellow” journalism, in wresting the black market, from the back alleys of public consciousness and putting it on display in the storefront of the eye of everyone. In the painfully, yet enjoyable essays, Eric Schlosser takes us on many numerous excursions through the war on marijuana, the lives of immigrant farm workers, and the very dirty sex industry in the United States. He paints a very graphic image of hypocrisy in the policies of the U.S. government by examining the power of the economy of the underground and the misuse of government resources in legislating morality to its public. .
These products, these commodities, are placed in places where a majority of African American youth would be/see, “the placement of the product in small stores in African American neighborhoods, the ways in which the can of Pimp Juice looks like a can of beer, and the introduction of sports energy drinks in general all reflect the need to expand consumer markets,” (Collins 2009). Another piece of evidence she provides is the prison system. She details on how black men 's commodified bodies are used as “raw materials” for this industry, “It is very simple- no prisoners, no jobs for all the ancillary industries that service this growth industry. Because prisons express little interest in rehabilitating prisoners, they need a steady supply of bodies,” (Collins 2009). She also writes about how black men who have citizenship rights cannot be be coerced into a low pay job, so they have a limited amount of jobs they could do, so most get trapped into the system that was set up to help fail
Illegal Markets can be deemed as secondary social groups, with their complex social structure and social interaction between each group. Such example could be during and drug sale with the interaction between the dealer and the client. Sociology in Our Times introduces that, “Social structure gives us the ability to interpret the social situations we encounter.”(Kendall 123) Thus, the social structure and the social interaction is already present and built around the known setting. Class system have different effects on the setting of crime scenes. Kendall describes class system as a “types of stratification based on the ownership…” (Kendall 225) so different classes have various, and differential ownership. Upper class and even upper middle class will have ownership of more hot products, things that hit all the check marks; concealable, removable, available, valuable, enjoyable, and disposable. But this doesn’t mean that the upper class is stolen from the most. Those in the upper class families are more likely to have stay at home moms who can act as guardians of their setting and hot products. Offenders wish for a target “who look like an easy purse-snatch” (Felson/Boba), or in other words the subordinate to they’re dominate. Offenders understand that the target will be easier to acquire if that target is weak. Furthermore the target could be safe if surrounded by dominate
Drug trafficking has been a massive concern between the borders of Mexico and the U.S. “since mid 1970s” (Wyler, 1). Drug trafficking is “knowingly being in possession, manufacturing, selling, purchasing, or delivering an illegal, controlled substance” (LaMance, 1). A dynamic relationship exists amongst Columbia, Mexico, and the U.S. the informal drug trafficking economy. This growing informal drug economy leads to many individuals creating a substantial living through this undercover market. These individual drug cartels monopolizing the trafficking market are a growing problem for the U.S economy and need to be located and controlled. If this trafficking continues, the U.S. informal economy will crush the growth of legal industries. The trafficking and abuse of drugs in the U.S. affects nearly all aspects of consumer life. Drug trafficking remains a growing issue and concern to the U.S. government. The U.S. border control must find a way to work with Mexico to overpower the individuals who contribute to the drug trafficking business. This market must be seized and these individuals must be stopped.
Concerned authorities have focused essentially on criminalization and punishment, to find remedies to the ever-increasing prevalent drug problem. In the name of drug reducing policies, authorities endorse more corrective and expensive drug control methods and officials approve stricter new drug war policies, violating numerous human rights. Regardless of or perhaps because of these efforts, UN agencies estimate the annual revenue generated by the illegal drug industry at $US400 billion, or the equivalent of roughly eight per cent of total international trade (Riley 1998). This trade has increased organized/unorganized crime, corrupted authorities and police officials, raised violence, disrupted economic markets, increased risk of diseases an...
According to Koppelman and Goodhart, merchants would sometimes exploit the poor by enforcing or formulating policies that would earn them more profits. These practices include blank price tags, bait and switch, rent-to-own and pawnshops (2007). These types of inequality and exploitation would make it harder for the low income to escape poverty.
Large street gangs rapidly employ violence to control and expand drug distribution activities, targeting rival gangs and dealers who neglect or refuse to pay extortion ...
The current issues that have been created by the market have trapped our political system in a never-ending cycle that has no solution but remains salient. There is constant argument as to the right way to handle the market, the appropriate regulatory measures, and what steps should be taken to protect those that fail to be competitive in the market. As the ideological spectrum splits on the issue and refuses to come to a meaningful compromise, it gets trapped in the policy cycle and in turn traps the cycle. Other issues fail to be handled as officials drag the market into every issue area and forum as a tool to direct and control the discussion. Charles Lindblom sees this as an issue that any society that allows the market to control government will face from the outset of his work.
...us the risks. By showing how a person’s actions change through a change in the risk of getting caught, the punishment, or the earnings a criminal might earn from his activity, economists help show that criminals to try to maximize their utility whenever they are considering an illegal activity. The economic framework for crime has been expanded to apply to many different areas of economics relating to crime such as: gun control, gangs, illegal drug use and policy in order to get an established view of the economic facts in order to show correlations between individuals and the decisions they choose. Economics can and has been used to create models that explain areas of crime that psychologists, sociologists, and other studies are unable to address as economists have effectively with their models and offers an empirical and statistical approach that provides models
Tragakes, E. (2012). Economics for the IB diploma (2nd ed.). Cambridge, UK: Cambridge University Press.
O'Sullivan, A., & Sheffrin, S. (2005). Economics. Upper Saddle River, New Jersey: Pearson Prentice Hall.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal