Are black markets always bad?

Every matter has both sides: good and bad; so do the black markets. Even though this kind of market is illegal, it is not always bad.

First of all, black markets are illegal, unreported, unrecorded and informal economy. They deal in many types of products such as endangered animals, weapons, drugs which are hardly found in the legal markets. The underground economy grows due to a weak economic fundamental.

There is a multitude of reasons why black market is not always bad. On the one hand, it has no barrier to enter so that purchasers can get in and out easily with no difficulties. In 1993, citizens of European Unions are given the right to work in other states. Consequently, this radical change results in the GDP of those countries. Denmark’s annual GDP growth in the 15 years after 1993 averaged 2.2 percent, Portugal’s averaged 2.3 percent. It’s time loosened that peculiar and outdated institution which only allows employees to work in where they were born.

On the other hand, black markets provide civilian with jobs despite temporary. According to ‘’Stealth of Nations: The Global Rise of the Informal Economy’’ by journalist Robert Neuwirth, he points out that illegal and off-the-books businesses employ fully half of the world’s workers. Therefore, the underground market does a massive impact on the economy.

In general speaking, everything has both sides and it is not except for black markets, they are not always bad.