how does graft and corruption affect the economy?

Question

please give me an article or opinion answering the question, How does graft and corruption affect the economy?. Thanks! I need it tomorrow please....

Answer 1

Do a search on Silverado Savings and Loan. $1.6 Billion of taxpayer money to the Bush family.

Answer 2

Look at a county like Venezuela. They have resources (oil - part of OPEC and bauxite among others), good infrastructure, good agricultural land, so you would think it would have very few poor people and a booming economy, but do to all the bribes and kickbacks, anyone who has any money puts it into U.S. banks, since their currency is highly volatile, rather than investing in their own country. Which turned out to be a wise decision given that Chavez is taking everything that is worth anything for himself (do you think any of the poor will see any of it).

And if you look at most third world nations, their leaders always seem to have a lot of money stashed away in safe havens.

Answer 3

It helps the economy by diverting the funds into recreational spending and individual capital investment, instead of stupid government programs.