English with Rachel
The topic for the next class will be ´The black markets and economy´ in Spain and throughout the world.
Therefore I would like you to write a 200 word essay on this topic, making comparisons between different countries, and any personal experiences that you may have with this topic.
- Understanding the Black Economy: Definition, Implications, and Strategies - SuperMoney
- What is the black market? — Economy (ecnmy.org)
The writing exercise
The black market and the shadow economy are both parts of the economy that operate outside of the official system.
A black market is a specific type of illegal trade. It involves buying and selling things that are forbidden by law, like drugs, weapons, or endangered animals. These activities are harmful to society and often linked to organized crime.
The shadow economy is a broader term for any economic activity that isn't officially recorded. This can include both legal and illegal actions. On one hand, it might involve people doing small jobs like babysitting or repairing things without paying taxes. On the other hand, it can include serious crimes like human trafficking, selling weapons, drugs or money laundering.
While the shadow economy might sometimes provide a way for people to earn a living, it also has negative consequences. Why? Because it could reduce the amount of tax money governments collect, which can lead to cuts in public services, such as healthcare and education. Additionally, it can create unfair competition for businesses that operate legally, creating monopolies and oligopolies.
Both, the black market and the shadow economy, are difficult to measure because they are deliberately hidden. Governments and organizations around the world work hard to understand these underground activities and find ways to reduce their impact.
Ultimately, I believe that the shadow economy, at a small level, can help people in stressful economic situations, due to bureaucratic and corrupt styles of government. And I am absolutely certain that most of us have been in that kind of situation.