A black market is a way of exchanging goods and services illegally. In a black market, money is earned through illegal means. The black market is one of the most identified causes of increasing crime in the society. The black market gives birth to too many unhealthy impacts on society. Among all the victims of the black market, the economy is on the top. These illegal activities are rooted in the covered economy which cannot be identified through legal ways. This makes it difficult for the state to keep a check and balance on the economic activity and the dynamics related to the real condition of the economy.
Black Market Economics – HOW BLACK MARKET WEAKENS THE ECONOMY?
The worst impact of the black market on the economy is that it badly damages the domestic business of the country. Additionally, people dealing through black marketing violate the rules and regulations without being caught by the regulatory authorities and the process goes on. Poor class is mostly the victims of such crimes as they get involved in order to earn money. In this way, the whole social and economic arenas of the country are damaged. Tax evasion is another huge problem. As the black market is the shadow market and the economic activity goes on without check and balance and payment of taxes. Low tax revenues reduce the ability of a state to spend for the betterment of the country.