Appearance and Disappearance
If an economic good is illegal but not seen by many in society as particularly harmful, such as alcohol under prohibition in the United States, the black market prospers. Black marketeers can reinvest profits in diverse legal or illegal activities, well beyond the original source of profit.
Some, for example in the marijuana-trade debate, argue for removing the underground markets by making illegal products legal. This would, in their view:
- decrease the illegal cashflow, thus making the performance of other, potentially more harmful, activities financially harder
- allow quality and safety controls on the traded goods, thus reducing harm to consumers
- let the goods be taxed, providing a source of revenue
- free up court time and prison space and save taxpayer money.
Read more about this topic: Underground Economy
Famous quotes containing the words appearance and and/or appearance:
“You speak of poverty and dependence. Who are poor and dependent? Who are rich and independent? When was it that men agreed to respect the appearance and not the reality?”
—Henry David Thoreau (1817–1862)
“Look into the world—how often do you behold a sordid wretch, whose straight heart is open to no man’s affliction, taking shelter behind an appearance of piety, and putting on the garb of religion, which none but the merciful and compassionate have a title to wear.”
—Laurence Sterne (1713–1768)