The black market works as a shadow economy

The black market works as a shadow economy

The black market is at times described as the shadow economy. It is a business structure that is organized to facilitate the buying and selling of products that are outlawed or banned. The constitution and various laws are passed to regulate the consumption of certain goods. For instance, governments have come up with legislations that illegalize the use of some products. However, the outlawing of these commodities results in the expansion of the black market. The following are some of the reasons as to why outlawing commodities will result in the development of the black market.

When substances are banned, a demand is created. When governments come up with legislations to bar citizens from consuming products like alcohol, tobacco, and other drugs, a bigger underground market is expected to emerge. This is because the people that actively consume these products will not stop using them just because they have been declared illegal. Instead, they will seek and establish methods of acquiring and consuming these goods in secrecy. Like any business, individuals will be interested to make money by availing the commodities illegally. The ban will imply that the supply of such products is short of the available demand. Therefore, prices will be hiked, and this will attract more sellers, and thus an expanded black market.

Banning substances increases the curiosity of individuals. This implies that more people will be interested in trying it. As this scramble continues, the black market will continue to expand. There will be innovations on how the commodities will be availed in the market. Law enforcement agencies are used to ensure that policies are implemented. The peddlers have a lot of money which they use to bribe the police agencies to find their way of smuggling the banned goods.

Other better methods can be used to ensure that some commodities are not consumed. For instance, there is a need to create awareness on the adverse effects of these substances. For example, in order to deter people from consuming alcohol, marijuana, and tobacco substances, there is a need to educate people on the negative effects that come from their usage. For example, the public should be educated on diseases that result from the excessive use of alcohol, tobacco products, and any other dangerous controlled commodities.

Barring some commodities results in the emergence of gang groups. These are organized parties that are dedicated to facilitating the accessibility of banned substances in the illegal market. Due to green and immoralities, many people become interested in the high revenues that can be obtained from the sale of unlawful commodities. In the long run, the black market continues to flourish. Bribery and corruption are utilized to silence the officers that may stand up to fight the harmful vices.

Across the world, the cartels that take control of the black market are usually the ones that dictate those that are in power. This is attained through bargain powers of money and support for them to continue staying in power. This implies that the black market continues to expand and it can attain the global status or popularity.

In conclusion, outlawing controlled substances results in a rapid expansion of the black market. It is because people will continue to use the banned substances secretly. Therefore, individuals will come out to sell and buy these commodities in the black market. Issues of corruption come in, and those in power are manipulated, and therefore the illegal business will continue to flourish.

 

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