The Black Market also known as the underground market is the part of economic activity involving illegal dealings. Typically the buying and selling of merchandise or services illegally. Goods such as weapons and illegal drugs are inherently illegal, merchandise may also be stolen or may be otherwise legal goods sold illicitly to avoid tax payments or licensing requirements, such as cigarettes.
Black markets develop when the state places restrictions on the production or provision of goods and services that come into conflict with market demands. When state restrictions are heavy, such as a period of prohibition price controls or rationing, the market prosper. Black markets are present in any economy. "Black Market" comes from a time in the eighteenth century when southern Carolina slaves were encouraged to grow their goods to market. As they grew profitable, local government barred white people from buying their food, yet many continued to do so.
As a result of an increase in government restrictions, black market prices, for the items most needed, will rise. Restrictions represent a decrease in supply and an increase in risk on the part of the suppliers, sellers, or any middlemen. A decrease in supply will increase prices, and also increased enforcement of restrictions will increase prices for the same reason. There are two levels in illegal goods. One is the good may be less expensive than legal market prices because the supplier did not pay the normal costs of production or pay the taxes. Illegally supplied products can be too difficult to get and may as well not be available legally.
In the case of the legal prohibition of a product that large segments of the society view as harmless in spite of its legal status, such as alcohol under prohibition in the United States, the black market will prosper. The black marketers often reinvest profits in a diverse way. Black market prices can be reduced by removing the relevant legal restrictions. The term " Black Market" also applies to illegal monetary exchange outside the authorize institutes.
A classic example of black market activity is the prohibition period in the early twentieth century in the United States. Numerous organized groups too advantage of the opportunities in the resulting black market, the government banned alcohol production and sales. Organizations such as the Mafia grew tremendously more powerful through their black market activities distributing alcohol. Another example is Burma under the rule of Ne Win. The country became one of the poorest in the world and only the black market and rampant smuggling supplied the peoples needs.
In many countries today drugs such as marijuana, heroin, and cocaine are used in the black market. Despite ongoing law enforcement efforts to intercept illegal drug suppliers. Demands for these and other drugs remains high, encouraging criminals to ensure their availability. Law enforcement usually catch these criminals but such a high demand for these drugs ensures that the black market prices will rise, encouraging new distributors to enter the market in perpetual cycle. Prostitution is illegal in many places as well, yet market demand for the services of prostitutes remains very high. Black markets also form near when neighboring jurisdictions have substantially different tax rates on similar products.
Between 1984 and 1993, Canada doubled its taxes on cigarettes with the aim of reducing smoking and increasing tax revenues. Sergeant Alain Giroux testified on the effects of those tax increases before a United States Senate subcommittee on behalf of the Royal Canadian Mounted Police. He said underage smoking has failed to decrease because of the high percentage of cigarettes sold on the black market. The growth in the black market due to the high cigarette tax in Canada spawned violence and nurtured organized crime. Since teens are able to buy cigarettes and drugs on the black market, underage youths increased their smoking, and their health is in great danger. The black market definitely effects the community. Since California raised its cigarette tax in 1988, black market sales have risen to an estimated eighteen percent to twenty-three percent of cigarettes sold. So the increase in tax for cigarettes and alcohol have not been effective.
More than 10 million illegal immigrants
BLACK MONEY IN INDIA
THE MENACE OF BLACKMONEY
THE TAINTED WEALTH IN THE COUNTRY
IMPACT OF BLACK MONEY ON INDIAN ECONOMY
Illegally earned money is called black money. It is the result of hoarding, smuggling, tax evasion and dealing in immovable property for which the consideration is paid in black. It has been beyond the control of the Government. The black money has already created a serious problem in our country.
The Indian economy stands badly shattered because of the huge amount of this trainted wealth lying in the coffers of the rich. It has given rise to parallel economy operating in the country. As a becoming poorer while the rich go on becoming richer. The gap between the haves and the have-nots is widening every day.
Black money is used by the rich in various evil activities. They use this money for corrupting and demoralizing social and political life. They display it in ostentatious living and wasteful luxuries. They bribe Government officers and lead them to corruption and dishonesty. They purchase political bosses and control the strings of the Government. Thus the entire social structure comes to be badly polluted.
It is difficult to form an exact idea of the amount of black money in circulation in the country.Searches and raids by Income Tax authorities are conducted from time to time. Such raids yield crores of rupees. But the people are, at times, cleverer, than the Government. They seek the aid of the best legal brains and get the law twisted in their favour. Most of the offenders use all their money and influence and go scot free whenever they are caught. The Government has, at various times, announced some voluntary disclosure schemes for unearthing the black money. These schemes have proved successful to a very limited extent. What has come to the surface is believed only to be the tip of the huge iceberg lying hidden underneath. The 1997 Voluntary Disclosure Scheme announced by the Government of India unearthed a big amount of black money as the tax rate in this scheme had been reduced to thirty per cent.
The black money, according to some reliable estimates has gone up to Rs. 10,000 crores in our country. It is to a great extent responsible for a great rise in prices because the purchasing power of the people has increased. People having black money are leading a life of luxury whereas the poor people are leading a miserable life. Some leading economists of the country have suggested stringent measures to the government to unearth black money but successive governments have been rejecting those measures. The vested interest always stand in the way of effective measures and get them diluted.
The government of the day appears to be doing its best to unearth black money. A number of steps have been taken. Taxation structure and system have been made easier. At different times, the government has brought forward several schemes and asked the people to declare their wealth. There has been some success. A lot still remains to be done.
It must be clear to all that the nation cannot shut her eyes to this state of affairs. Smugglers and black-marketeers can no longer be tolerated. They are striking at the very roots of our democratic structure. All steps to weed the black money out of circulation must be taken as early as possible. The government must come down with a heavy hand of smugglers, tax evaders, black-marketeers and hoarders. Black money is a curse. It must be rooted out from public life.
alviero martini portafogli
timberland pas chere
prada handbags uk
hollister outlet online
michael kors handbag sale
portachiavi alviero martini
toms wedges sale