Even though the Gross Domestic Product (GDP) is a measure of all “the market values of all final goods and services produced with a country during a specific period” (Gwartney, Stroup, Sobel, & Macpherson, 2013, p. 131), it is nonetheless an imperfect calculation. This is because of concealed trading of goods and services by certain individuals and corporations that are not counted in the GDP; thus, the GDP is understated by a “range from 10 percent to 15 percent of total output” (Gwartney, 2013, p. 144) in the United States alone. These hidden economic activities belong to the underground economy where “unreported barter and cash transactions take place outside recorded market channels, some [of which] are otherwise illegal activities undertaken to evade taxes” (p. 143). While many of the underground activities are illegal, such as drugs, gambling, counterfeit technology, pornography, prostitution, and human trafficking, many are productive and come from legal sources typically within the service industry, such as in labor, construction, and restaurant trades. (Gwartney, 2013, p. 143-144). Economic gain through tax evasion is the chief motive for a substantial numbers of buyers and sellers entering into the underground economy. Bovi and Dell’Anno (2010) argue that the underground economy goes “hand in hand with taxation” (p. 42), the “bigger the tax burden the greater the hidden income in order to increase the disposable income” (p. 20). In addition to the taxation factor, government’s excessive regulation, inefficiency, and corruption are further reasons why buyers and sellers choose the underground economy. When government is dishonest and inefficient, the number and quality of public services deteriorates, making “peo... ... middle of paper ... ...treat them with respect and dignity and not force them into government dependence (Leviticus 19:15, 23:22), while at the same time calling the poor to do all that they can in helping themselves (Proverbs 10:4, 13:18, 19:15). In the New Testament, the Apostle Paul said that God instilled the government in society for the purpose of administering justice, not social welfare programs (Romans 13:1-6), and as Jesus directed, people are to pay the taxes that are due (Matthew 17:24-27; 22:15-22). Revolting against taxation and government corruption and inefficiency is not new. While man’s sinful nature, his greed, and the struggle to survive have generated illegal activities and corrupt markets, expanding government bureaucracy and social programs to care for the poor and needy are ineffective and inefficient, as they drive underground economies to flourish even more.
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...
In the article “God’s Heart for the Poor,” Dr. Jay W. Richards, a famous author, claims that Christians should have both heart and mind in order to help the poor and become a true, good neighbor. He uses some Bible verses to teach the readers about the importance of being a good neighbor and uses The Piety Myth to explain how Christians should “exercise prudence” and connects this concept to the economics.
“If a free society cannot help the many who are poor, it cannot save the few who are rich” (Kennedy 463). He describes the consequences of being selfish by explaining that focusing on one group will not bring success in the U.S but bring it down. There are many who are poor and suffering, but a few who are
costs of local and state political campaigns which causes one to think that the mob may have a strong hold on many powerful politicians. Mafia involvement with legitimate business’s affects the public in many ways. Respectable bankers have become unwitting allies to the Mafia and most of the securities stolen in the United States during the last two decades are lying safely in the vaults of respectable banks, hypothecated for legi...
Reuter, Peter. The Organization of Illegal Markets: An Economic Analysis. Washington, D.C.: Government Printing Office, 1985.
The four hundred years between the collapse of the Han dynasty (206 B.C.E.- C.E. 220) and the establishment of the Tang dynasty (618-906) mark a division in the history of China. During this period, foreign invasion, transcontinental trade, and missionary ambition opened the region to an unprecedented wealth of foreign cultural influences. These influences were both secular and sacred. Nomads, merchants, emissaries and missionaries flooded into China, bringing new customs, providing exotic wares, and generating new religious beliefs. Foremost among these beliefs was Buddhism, born in India, but which now took root in China. These new influences entered China by a vast network of overland routes, popularly known as the Silk Road
...ny people trusted paper currency, so the Chinese had to get a new economy system. Silver was one of the best choice.
estimated 7 billion dollars earned in shadow market. This money is used for drugs, gangs, mafia,
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.
...d argues that organized crime operates as a governance structure mostly addressed to the underworld so that its activities cannot be reduced to the supply of illegal goods. Contrary to Schelling’s claim (1971), extensive evidence exists that the services offered by MCOs can be ultimately genuine. For instance, scholars have established that MCOs are able to supply genuine services like protection against extortion; protection against theft and police harassment; protection in relation to credit obtained informally and the retrieval of loans; and the settlement of a variety of social disputes. The Mafia offers protection services to entrepreneurs of illegal commodities, such as protection for thieves, prostitutes, loan sharks and drug dealers. Mafiosi also protect their clients against law enforcement, or enforce illegal agreements and deals among corrupt actors.
The Black Market is defined as people who engage in illicit trade. Smuggling of Nuclear weapons plays a role in this. The Russians, U.S., and other countries are involved. Russia has been one the move since the Cold War ended. The Russians position threat to many lives with nuclear sales. Many Russian affiliations and events are to blame including Russian Mafia, military intelligence, Trading Air, collapse in economy, and disgruntled Nuclear employees.
I recently heard a story of a pastor who went to the church he was going to preach at. The pastor dressed himself up as a homeless man and sat in front of the church before service. As people began pouring into the church, they did not offer to assist him nor any money for food. He also received dirty looks and evil stares as these “godly individuals” entered the church. Later, the pastor was announced as the homeless man they had seen before. The pastor was still fully dressed in his costume as he walked to the end of the stage; the church family was beyond shocked. Furthermore, this is an example of a particular reason why poverty still exists around us today.
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...
SANDU, A., & NIŢU, M. (2013). CORRUPTION AND ORGANIZED CRIME. Contemporary Readings In Law & Social Justice, 5(2), 454-460.
In 2012,Transparency International’s Corruption Perceptions Index ranked India 94th out 176 countries. "It is not about petty bribes (bakshish) any more, but scams to the tune of billions of rupees that highlight a political/industry nexus which, if not checked, could have a far reaching impact”(KMPG,2012).Corruption poses a risk to India’s GDP growth and continual level of Corruption will lead to a volatile political and economic environment.Almost half of India’s economy runs in the informal or black market sector, ‘shadow economies’ permeate the lives of every citizen.What seems on the surface as broken,dysfunctional system,operates smoothly with ease for those with money and power.Whereas,for an Average citizen, access is limited and a reminder of a failed democracy.In this essay I will be looking more deeply into the issues of Corruption and how it has impacted the Indian economy.