Black Markets Flourish Where Banned Goods Meet Lingering Demand
-
A black market refers to the buying and selling of illegal products or legal products purchased illegally. It could include drugs, guns, prostitution, ticket resales, prescription drugs, etc.
-
Black markets deprive governments of tax revenue since transactions are typically cash and untraceable.
-
Black markets undermine regulations, take business from law-abiding companies, and can fund organized crime.
-
They exist due to bans on products coupled with ongoing demand and the ability to charge premium prices.
-
Prohibition in the 1920s-early 1930s created a massive black market for alcohol, enriching mobsters like Al Capone until it was reversed in 1933.