Comment on My ECON Professor always said that the Black Market Economy always influences the legal economy. Is this actually true? Does this not mean the legal economy is making money on criminals?

Skyrmir@lemmy.world ⁨3⁩ ⁨days⁩ ago

Economic activity is economic activity. Laws are regulations are just expenses that lead to market distortions. If all works as planned, the cost of violating the law minimizes the size of the black market, but it’s always going to be there. Because of that, spending will get shaped around not only that market, but legal avoidance as well.

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