how can the economic sector of a country help demolish undeground markets?
2006-11-05 22:24:23 · 4 answers · asked by Anonymous in Social Science ➔ Economics
Underground economy exists because laws and regulations do not allow it to exist above the ground.
One way to "demolish underground markets" is to legalize the currently-underground trade. When Bayer was making and selling heroin along with aspirin (by the way, Heroin, just like Aspirin, used to be a registered trademark of Bayer), no one got killed over drugs; they could be bought in any reputable drugstore... There will be plenty of political opposition to such a solution though...
2006-11-06 04:33:37 · answer #1 · answered by NC 7 · 1⤊ 0⤋
There is an underground economy because many people do not wish to reveal their incomes to avoid taxes or because the means in which they acquire it is illegal. Drug dealers have not been known to do their taxes. I think it is nearly impossible to demolish the underground economy.
2006-11-06 06:29:04 · answer #2 · answered by Waylon R 2 · 1⤊ 0⤋
To balance the inefficiencies of the formal economy.
2006-11-06 07:48:20 · answer #3 · answered by ElOsoBravo 6 · 1⤊ 0⤋
YOU ARE ASSUMING AN UNDERGROUND ECONOMY IS ALL BAD. IT'S MY BELIEVE AN UNDERGROUND ECONOMY MAY BE A NECESSITY IN AREAS WHERE THE GOVT IS CORRUPT.
2006-11-06 06:29:46 · answer #4 · answered by Anonymous · 3⤊ 0⤋