Shocker: Black Markets Have Become The World’s Second Largest Economy

The world economy is in the crapper. Governments around the globe, bloated to the point of collapse, are desperately seeking new revenues. That has driven taxes and restrictions on trade to new highs.

So high that millions of companies and workers are choosing to go around those taxes and regulations.

There’s nothing surprising about this. The more barriers put between citizens and commerce, the more likely citizens are to just go around the barriers.

That’s why, historically, the United States has never averaged more tax revenues than roughly 18% of GDP. When taxes get too high, people find ways (be they legal or illegal) to stop paying them.

Black markets are just the free market bypassing overly-burdensome taxes and regulations.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • mikemc1970

    When free enterprise becomes a crime, entrepreneurs will become criminals.

    • Sp

      I you reason from maxims, you are likely to believe horseshit like the causal claims in this post.

      • mikemc1970

        I you reason from maxims, you are likely to believe horseshit like the causal claims in this post.

        Are sure you don’t want to run that through babelfish a couple of times first?

  • Jamermorrow

    In many instances the black market is the real market and the only way to get products or services.

  • Hannitized, Proofs obsession

    Shorter Rob Port:  Criminals show us the proper way to make profit, we should reshape our form of capitalism based on the crimes people commit.

    • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

      No way!? Is that a real quote?

      • Hannitized, Proofs obsession

        No, that’s his point, condensed.  Maybe I shouldn’t have actually used quotes.

        I will do what Rob never does, correct the post.

        • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

          HA! Don’t retreat, reload.

  • SigFan

    Nothing new about this, the black market has always existed and always will.  More people are turning to it avoid the burden of regulation and taxes that take the products they want or need beyond their financial reach.  Some enterprising person will see that as a niche market and find a way to meet the demand.  Until our and other governments come to the realization that they’ve pushed the populace too far it will continue to grow.

  • Edd

    As an economist I’m in SHOCK and DISMAY that people would act this way and not happily pay to the government what is there’s… Like Jesus said according to BHO.

    • Sp

      So you are pleased that folks sell smack to American teenagers?

      • Edd

        Not sure where you get that I’m “pleased” about illegal drug trade from my post.  Fact of the matter is, as long as there is a demand for a product (legal or nonlegal) people will find a way to satisfy their desires no matter how many obstacles are put in there way by controlling authorities. 

        • 2hotel9

          sparkie gets that from the fact it sells smack to teenagers, that is the only way it can make money since it got busted for defrauding the Pennsylvania public welfare system.

  • 2hotel9

    All Americans should get into the black market, it is the true American way, f*ck government c*nts.

    • Sp

      Like I have always said, the destruction of your party began with cunts like Hoover.

      • 2hotel9

        Yes, sparkie, we get it, racist Democrat Party c*nts like you are what is wrong with America, stupid c*nt.

  • Sp

    It’s not due to taxation, asshat.  It results from problems with the credit markets.  The credit markets are impacted when to many capitalist scumbags lie, cheat, and steal and no one trusts anyone else anymore nor has any confidence in their ability to pay debt.

    The grey and black economies are much less dependent on credit.

    Moreover, many governments looking at liquidity problems will benefit from increased black market activity to the extent to which that activity aids liquidity.

    But I’m sure it’s just the f*cking taxes.  What else could it be?  It’s always the taxes, right Port?  You reason so narrowly and poorly as to be offensive.  People who you expect to buy this shit should be insulted that you think so little of their intellect such that you offer us this simplistic garbage in the stead of proper reasoning.

    Moreover, there is no distinction between legitimate commerce and illegitimate commerce in some areas of the globe.  This would mean, of course, that black market activity is not choosen as an option instead of white market acitivity.  THere’s no option.

    Additionally, the black market is larger than the white market when it comes to total people employed.  More workers work in the grey and black economies than do in the white economy.

    • Edd

      Sp, you really have no clue…Black markets do use credit, it’s just not at the local savings & loan, it’s from the loan shark down the street.  While black/grey parts of the economy do stimulate economic activity, if none of it is in the “white” economy the government never sees a dime.  There is no sales tax collected, no income tax, no fica, no Medicare.  Only areas that may see a rise are car licenses, and property taxes on new construction projects where black economy money comes out of hiding.  So next time you want to express potty mouth economics, do it after you read an entro to macro economics text book.  Trust me, I’ve operated with a lot of individuals wanting to stay under the radar…..cash is KING.

      • Sp

        Intro to macro econ books tell us nothing about the blackmarket, asshat.  Nor have you relayed anything in your comment that shows you have a flipping clue what goes on in a macro econ class.

        What have I said that is incorrect?  You pick on me and namecall, but it’s not even clear that you are objecting to anything I wrote.Perhaps if you concentrate really hard you can manage a response to my comment.

        • 2hotel9

          He “picks” on you!?!?  Hahahahahahahahahahaha!!!!!!!!  What a whinny little c*nt you are. Now cry for us, squeeze out some tears to go with your lies and sh*t spew, sparkie.

      • Sp

        Unless you are maintaining that white market liquidity problems affect black market loan sharks, you ain’t saying nothing that conflicts with my claims at all.

  • moors710

    In a common model I use for paying taxes: The rate at which people cheat on taxes is about Tax Rate
    Example
    At 10%: losses 0.1*0.1= 1% tax  net 9% taxes received 10% of the economy is black market
    At 20%:0.2*0.2= 4% tax “losses” net 16% taxes received 20% of the economy is black market
    At 30%:0.3*0.3= 9% tax “losses” net 21% taxes received 30% of the economy is black market
    At 40%:0.4*0.4= 16% tax “losses” net 24% taxes received 40% of the economy is black market
    At 50%:0.5*0.5= 8% tax “losses” net 25% taxes received 10% of the economy is black market.
      Since there are also impediments to open investment in the black market the real capital investment shrinks at the same percentage.  At 50% half the economy is in black market and no net investment takes place.  
    The black market is the real rational result of taxation.

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