Following is my discussion regarding how Capitalism and Freedom discourages the existence of black-markets versus how Statism and Force encourages, even promotes, the existence of black-markets. My discussion regarding the elimination of black-markets under Capitalism and Freedom comes first, followed by my discussion regarding the need and establishment of black-markets under Statism and Force.
How Capitalism and Freedom discourage Black-Markets
Capitalism and Freedom discourages, diminishes, and even eliminates any need, motivation, or establishment for the existence of black-markets.
Also, Capitalism discourages and diminishes the need, and the motivation, for common people and organizations, including criminals and thugs, to get involved with and try to establish any black-markets, meaning any “underground” operation and/or control over free, open, unrestricted, unregulated markets and commerce. Why?
To review: under Capitalism, there is NO government regulation or control of the economy, meaning NO regulation or control of any commerce, meaning NO regulation or control of any commerce establishments and/or activities, meaning NO regulation or control of any businesses, meaning NO regulation or control of any business activity or trade, meaning NO regulation or control of any banking and financing institutions and related activities, meaning NO regulation or control of any products, goods, services, resources, or economic activities and practices, meaning NO regulation or control of any individual and economic freedoms – in any manner or for any reason.
Under Capitalism, there is no motivation or need for any “underground” markets, and therefore, no motivation or need for black-markets because, under Capitalism, there is no government forced restriction or control of individual and economic freedom – only the recognition and protection of individual and economic freedom, individual rights, property rights, and derivative freedoms – any and all products, goods, services, and resources that are developed, produced, and supplied, including any and all economic (commerce) activities and practices, that seek to fulfill the desires, wants, and needs of any and all consumers and/or other businesses, are completely unrestricted, unregulated, and available freely and openly in a free-market atmosphere to anyone and/or everyone.
How Statism and Force encourage Black-Markets
Statism and Force encourages, expands, and even promotes the need, the motivation, the opportunity, and the establishment for the existence of black-markets.
Also, Statism encourages and motivates common people and organizations, including criminals and thugs, to establish, operate, and control the State (government) caused and created black-markets.
Only Statism (government economic intervention, restriction, regulation, and control) encourages, promotes, and makes black-markets possible, because a statist government restricts, regulates, mandates, and controls – even tries to eliminate – any and all products, goods, services, and resources, including any and all economic (commerce) activities and practices, that individuals and businesses trade with each other, and desire, want, and/or need. In doing so, this only opens up an “underground” opportunity for someone, or some organization, to supply the products, goods, services, and resources that individuals and businesses desire, want, and need – albeit “illegally” as only determined by the Statist government.
(1) The Current “Illegal” Drug Market,
(2) Price and Supply control of cigarettes from one state to another causes an underground market for cigarettes between states,
(3) state control and/or prohibition of gaming and gambling causes underground markets for such activities,
(4) state restrictions, control, and/or prohibition of abortion, thus forcing women to unnecessarily risk their lives to seek out underground, potentially dangerous, unsafe, life-threatening medical procedures and/or alternatives.
State (government or ruling group) control of the economy, including the control of individual and economic freedom – meaning Statism, in any manner for any reason – encourages, expands, and even promotes the need, the motivation, the opportunity, and the establishment of “underground” markets, meaning black-markets.