The Underground Market: The Black Market In The United States

The black market, or the underground market, according to the definition of Johnson, is “a market in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power” (paragraph 1). In layman’s terms, illegal products are usually sold or traded throughout this market. The beginning of the black market dates back all the way to the early 1920’s during the alcohol prohibition era. Since alcohol was banned from being sold and consumed, and there was such a high demand for it, it created an illegal liquor trade (Lerner, “Prohibition”). This is the earliest history of, what is now known as, the black market. Not only does it date back to the early 1920’s, but it is also not regulated
The black market is a general title of the diverse types of sub-markets out there. The NCJRS claims that the most common types of markets are: narcotics, prostitution, illegal immigration, etc. (Simon & Witte, 1982). The narcotics portion deals with the making and distribution of illegal drugs like heroin, cocaine, and marijuana (Simon & Witte, 1982). Since these markets are illegal, the consequences of being caught are terrifying. It can result in being arrested, being put in prison, owing mass amounts of money, facing years in prison, and other uncomfortable consequences. Being involved in the black market is a dangerous business and should be avoided. Since illegal products are traded and sold, it is not government regulated since
82). Currently, the United States’ real GDP is $18,569.1 billion (BEA, 2017). This balance is not the actual GDP though. Since there are consumers participating in illegal activities, they do not tell the government that they are receiving money from their side jobs. Callen (2012) states that “black-market activities are not included because they are difficult to measure and value accurately” (paragraph 4). In an ideal world, our real GDP would be our actual GDP, but sadly, that is impossible. According to Maverick (2016), “estimates of the size of the underground economy in the United States range between 7 and 11% of the total economy as of 2016” (paragraph 6). Although between 7 and 11% may seem miniscule, it is a lot. 7% of the $18,569.1 billion equals a rough estimate of $1 billion and 11% of the GDP is around $2 billion. All this money, and more, that is not