America’s Underground Economy Market

Category: Gambling, Internet, Money, Tax
Last Updated: 25 May 2020
Pages: 7 Views: 217

In international counties, the unemployment rate has given society no sense of hope but there has been an alternative source to boost their spirits. The underground market has been a resource for individuals to gain a taste of some tangible dividends. Also the underground market has helped the economy growth significantly given the sluggish recovery in the U. S. Unemployment situation.

With this notion, what is the underground market? And what are the entities of this resource? The underground economy is goods or services are traded illegally! It consist of criminal nature, such as smuggling, counterfeiting, prostitution, drug dealing, and gambling, but also includes legitimate lines of work (Hide B. Malaria, 2000-2005). The international countries alone trades an estimated total of $625. 63 billion a year all completely under the table, and, of course, tax free. A billion dollars is a lot of money.

But when you multiply that figure by 6, that's more money than the combined Gross Domestic Product GAP of a few small countries combined. Whether cigarettes or movies or body parts, it's being traded, and there are no signs of it stopping. These 8 industries are the most prolific on the international countries black market, according to figures reported by Statistician. Com taken from sources including the FBI and the United Nations. The international countries recession has pushed more of its workforce into this informal market.

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Some of the activities are illegal, drug sales, stolen good exchanges, America's Underground Economy Market By Jamming 2014). Although these commodities are largely banned from the marketplace, people n America spend a lot of money on them, particularly illegal drugs (Smartest, 2014). Workers turn to anything that pays them under the table, with no income reported and no taxes paid especially with an uneven Job picture (Kobo, 2013) . Those working and not paying the taxes puts the burden on those who pay the tax.

Within legal occupations such as: landscaping, waiting tables or dog walking, the shadow market helps people to earn a living without having to pay income taxes. Undercooked professionals are driven to the underground market in search of arrival, especially through the tough Job market. Others rely on the grey or black market to find work, gain experience or transition to a new career. Businesses and companies are not angels, and they exist to make a profit, they are going to do everything they can to keep costs down, and if that means paying people off the books, they will do it.

Also companies focus on keeping expenses low, they are turning to the shadow market to find affordable freelancers, consultants and part- time workers. Undocumented employees can help a business to avoid labor-related taxation (Smartest, 2014). In addition, society doing what they can to survive in a dour Job market, millions of international countries exist in an underground economy that has ballooned to $2 trillion annually. The rapidly growing amount of unreported wages in the U. S. Is costing the nation billions in lost tax revenue (Seller, 2013 ).

The Internal Revenue Service estimated that the losses from unreported wages have grown from about $385 billion in 2006 to about $500 billion last year (Seller, 2013 ). State governments lose another $50 billion to the overall underground economy. That means the people ho play by the rules are getting a raw deal (Seller, 2013 ). Furthermore, the Urban Institute used official national datasets on drugs. It estimated how drugs have changed over time and then used its own research to size up the underground economy.

Jamaica continues to be the largest Caribbean supplier of marijuana to the United States. Cocaine and synthetic drugs are not produced locally, but Jamaica is a transit point for cocaine trafficked from Central and South America to North America. Drug production and trafficking in Jamaica are both enabled and accompanied by organized crime, domestic and international gang activity, and endemic police corruption. The market for illegal drugs was worth $754 million. Legal arms sales come from Russia and could be much higher, and they include countries subject to a weapons embargo and areas of armed conflicts. Russia was accused of supplying arms to terrorist organizations such as Hams, GIG and Hezbollah, with the ruling Sad regime in Syria acting as an intermediary. The revelation of Venezuelan President Hugo Shave's plans to supply militants from the terrorist organization AFAR, operating in Colombia, with Russian weapons set off one f the biggest International scandals of modern time.

When studying from both Thailand and Cambodia on the prostitution industry in the underground market, sex work is so lucrative for everyone involved that it is more blatant than almost anywhere else in the world. Economic researchers were able to understand much more than market size (Chalk, 2014). They concluded that 9. 7 percent of pimps accept credit or debit cards as a method of payment, children who had been trafficked into sex work and women and men that were allowed to do bar work over the age of 18. Chalk, 2014). Hotels and motels were the most common location for work (67 percent), followed by streets (53 percent) (Chalk, 2014). Transportation was the most frequently cited expenditure; 66 percent of pimps said it was one of their outgoing costs (Chalk, 2014). Also, counterfeiting is element of the underground market and is divided into two categories: deceptive and non-deceptive (B. , 2014). Within deceptive counterfeiting, people are led to believe the product they're buying is genuine (B. , 2014).

In non- deceptive, people are only interested in the money they are saving, and are fully ware that what they are purchasing may not be real (B. , 2014). China is by far the world's largest producer of counterfeiting goods. The International Chamber of Commerce estimated the underground market value of counterfeiting will be the net worth of 1. 8 trillion. It's not Just watches or clothing that are being counterfeited (B. , 2014). The list goes on to include things as big as aircraft parts, as risky as fake documentation, and as dangerous as pesticides (B. 2014). Just below drugs, counterfeit electronics alone reaches the top of the list with a total value of $168 billion 2014). In China, gambling has a long history together and many states today have legalized it for its economic profitability. Gambling in China is officially illegal under Chinese engage in legal gambling in the special administrative regions of Hong Kong and Macaw, whose legal systems resemble those of European countries which formerly administered those regions the United Kingdom and Portugal, respectively.

Despite the growing network of legal casinos and bookies, illegal back-door gambling is still prevalent on the black market and is worth billions of taxable income. With all levels f legal gambling, whether in a casino or at an online poker table, there must be a prize, chance, and consideration. However, when one of these prerequisites is removed if, for example, the house has eliminated almost every chance at winning almost to the point of fraud it becomes illegal black market gambling. Some people will do anything to avoid spending money on a movie ticket.

This includes buying bootlegged versions of movies from street vendors or downloading them from the internet through POP networks. This is done by either digitally recording a movie directly from a theatre, or digitally copying DVD's or web streams ND distributing them all free of charge. As with music piracy, movie piracy and smuggling are vastly growing industries. But the penalties are high. A first-time offender of video recording in theatres can face up to 5 years in prison or be fined up to $250 000.

Despite avoiding prison time, offenders may face a lawsuit from the Motion Picture Association of America so that they may recoup their billion-dollar losses. Since the advent of the internet, illegally downloading music has become one of Americans' choice methods of staying up to date with the latest tunes. Online Peer to Peer or POP networks allow people to share digital information anonymously, providing music lovers with hassle-free access to Just about anything they can imagine all without paying a dime.

Although this is essentially stealing, in this case the laws are notoriously complex and have yet to catch up with the rapid technological advancements. Because most internet servers that transfer the pirated music from one computer to another are usually located in a country other than the U. S. , the prosecution of such crimes becomes a Judicial nightmare. Not showing any signs of slowing down, the digital and physical smuggling of music on the black market leaves thousands of musicians and music labels with empty pockets.

America doesn't even fall in the top 10 countries for online piracy, yet its industry losses reach the billions. Most people will risk losing everything, or even prison, for the chance to outsmart the Federal Government. That is why illegally moving cigarettes over Canada state lines has become one of the most lucrative trades in the black market. It might not mean much to the average smoker purchasing their cigarettes from a local deli, but for organized crime syndicates, the risk is worth every penny.

According to a report by the Mackinac Center for Public Policy, when a state adopts a new cigarette tax, cent of the price of a package of cigarettes is tax. Many border-goers take advantage of the situation, not only in Canada but also in the U. S. , the land that has traditionally imported rather than exported illegal goods. Canadian provinces with lower tobacco taxes have reported higher rates of smuggling, and much of the smuggling is dominated by First Nations members though the bulk of First Nations members and dervish have opposed and condemned tobacco smuggling.

Sometimes people aren't Just trafficking cigarettes or alcohol they're illegally selling body parts. There are three different methods organized crime offenders will use to take and sell your organs on the black market: First, traffickers may trick a person into giving them their organ. Second, people may do away willingly with their organs for reasons of their own, usually when they're in dire need of monetary compensation. The third, and perhaps the most terrifying, is traffickers luring unsuspecting people o have treatment for unknown ailments and removing body parts without their knowledge.

Usually the "donor" countries are South America, Africa, Asia, and Eastern Europe, with recipients from U. S. A. , Canada and Australia. Alcohol, in the context of alcoholic beverages rather than denatured alcohol, is illegal in a number of countries, such as Saudi Arabia, and this has resulted in a thriving illegal trade in alcohol. Vague the manufacture, sale, transportation, importation and exportation of alcoholic beverage were illegal in the United States during the time known as the Prohibition in the sass and early sass.

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America’s Underground Economy Market. (2018, Jun 21). Retrieved from

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