International Underground Economy Market
University of the District of Columbia
Americas Underground Economy Market
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 (Heide B. Malhotra, 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 GDP 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 Statisticbrain.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. Some of the activities are illegal, drug sales, stolen good exchanges, bootlegging, gambling, prostitution and unauthorized immigrant labor (SmartAssets, 2014). Although these commodities are largely banned from the marketplace, people in America spend a lot of money on them, particularly illegal drugs (SmartAssets, 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 (Koba, 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. Underworked professionals are driven to the underground market in search of survival, 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 (SmartAssets, 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 (Zeiler, 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 (Zeiler, 2013 ). State governments lose another $50 billion to the overall underground economy. That means the people who play by the rules are getting a raw deal (Zeiler, 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...
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