Black market

The black market is the sector of economic activity involving illegal economic dealings, typically the buying and selling of merchandise illegally. The goods may be themselves illegal, such as the sale of prohibited weapons or the illegal drug trade; the merchandise may be stolen; or the merchandise may be otherwise legal goods sold illicitly to avoid tax payments or licensing requirements, such as cigarettes or unregistered firearms. It is so called because "black economy" or "black market" affairs are conducted outside the law, and so are necessarily conducted "in the dark", out of the sight of the law.

Related Topics:
Economic - Weapon - Illegal drug trade - Tax - Cigarette - Firearm

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Black markets are said to develop when the state places restrictions on the production or provision of goods and services that come into conflict with market demands. These markets prosper, then, when state restrictions are heavy, such as during prohibition or rationing. However, black markets are normally present in any given economy.

Related Topics:
State - Market

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Alternately: The term black market originates from the illegal sale of "Black Cawke" where its principal use was military, the coating of moulds for cannon balls. This sold for up to £5000 per ton in 1830, but trading had stiff penalties, "punishable by up to seven years transportation". http://www.rrcpc.org.uk/newsletters/NL_V38_N2_A7.htm

Related Topics:
Black market - "Black Cawke" - 1830

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