Black Market Economics - What Drives the Underground Economy?

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  1. Economics Explained
    Economics Explained
    9 maanden geleden

    Video's on these slightly less monetization friendly topics would not be possible without our supporters on Patreon. If you want to keep seeing these "spicier" videos, please consider supporting the channel on Patreon 👉

    1. Cliff Morgan
      Cliff Morgan
      Dag geleden

      Oxycodone, Xanax, Dilaudid, Methadone, Precocet are medication for Pain and other drugs. the only place to get hold of it without prescription is at , They are good and their services are awesome. 😎

    2. robinsss
      4 maanden geleden

      @Potatoes the best way to combat black markets is to first stop remove things on the list of tightly restricted list that logically shouldn't be there legalize any transaction that only involves consenting adults that would remove all drugs, prostitution , guns, and body parts then enforce laws on counterfeit or stolen items

    3. first last
      first last
      6 maanden geleden

      @Economics Explained To be clear, price controls can be good. Obviously only fools would put price controls below cost (long term that is) Price controls can be used to benefit both sides. Vietnam for example, one of the few socialist nations that exist today (neither China nor Russia is socialist) has price controls on rice. The prices set are based on costs and free market concerns (socialism can exist with free market, and "free market" does not inherently mean capitalism) for a fair price, this benefits both sellers and buyers. During times of extra production, the price control makes sure the price doesn't dip too low and make things hard for farmers despite their success. During times of too little, the government subsidizes things (using reserves) and makes sure consumers don't suddenly find themselves paying a bunch more for a basic stable. The farmers get reliability in what is inherently a risky endeavor (growing crops, very much based on the randomness of nature) and customers get reliably priced product. Besides businesses the world over control prices in various ways, whether it being one of 2-3 companies that control most of the industry, AKA monopoly control like airlines or MS Windows, and/or they control supply, like how De Beers hordes diamonds and releases them out slowly.

    4. Michael Patrick
      Michael Patrick
      6 maanden geleden

      Counterfeits do kill people -aircraft parts, pharmaceuticals, food ingredients, cosmetics, etc. just to name a few.

    5. Video Czar
      Video Czar
      8 maanden geleden

      i think i will use the philosophy of Mr. Burns when he got a call from homer's auto caller. I think I would be happier with the dollar.

  2. Cliff Morgan
    Cliff Morgan
    Dag geleden

    Oxycodone, Xanax, Dilaudid, Methadone, Precocet are medication for Pain and other drugs. the only place to get hold of it without prescription is at , They are good and their services are awesome. 😎

  3. Saint Arj
    Saint Arj
    2 dagen geleden

    I didn't know that fakes were black market

  4. Harold B
    Harold B
    7 dagen geleden

    Counterfeit goods are not harmless. Some can pose significant safety risks. For example, counterfeit parts on airplanes have failed in service, resulting in planes crashing. Even if no one dies, consumers are paying money for one thing and getting something else, often something of lower quality. Not good.

  5. AEGIS 21
    AEGIS 21
    11 dagen geleden

    Porn in some countries are illegal to either own,share or trade,so technically pornhub etc. are also part of the black market in some part of the world

  6. Kim Derr
    Kim Derr
    11 dagen geleden

    Automate is truly the safest platform you can invest your funds.I must commend the platform, they are always consistent with withdrawals and their payments are automated always making me happy💯

  7. Midnight Flare
    Midnight Flare
    16 dagen geleden

    Nobody: Kids selling lemonade: Gangsta's paradise!

  8. Eric Guier
    Eric Guier
    21 dag geleden

    12:50 - How does this account for inefficient uses of energy? The Soviet Union produced tons of energy if Vaclav Smil's Energy and Civilization is to be believed.

  9. Elliander Eldridge
    Elliander Eldridge
    21 dag geleden

    I stopped caring about counterfeit goods when companies like Apple got away with having legitimate batteries made by Apple seized at the border because Apple never authorized the individual sale, or when book companies started to do the same with book imports. Copyright/Patent holders should not be allowed to violate the first sale doctrine, but they act like owning the rights to the product includes the right to control how it is used once in the hands of the buyer and that is something I am so strongly against I'd rather see these companies have no protections than this level of power. This perception is probably shared by others which gives black markets their legitimacy. If the only way to replace a phone battery is to go to a black market that will open the consumer to other aspects of those markets.

  10. Publius New York
    Publius New York
    24 dagen geleden

    Could you do a video on undocumented workers and the effect on wages in an economy?

  11. James Thomas
    James Thomas
    27 dagen geleden

    What $40 cigs.... so they want illegal cigs then?

  12. Chino Gitarista
    Chino Gitarista
    Maand geleden

    Musicians have been living in this kind of economy for a long time. (PS: I am not a musician 😉)

  13. Arjun Majumdar
    Arjun Majumdar
    Maand geleden

    I do not want to see Donate cart ads. Please!

  14. Bill Kong
    Bill Kong
    Maand geleden

    ironically $0.50/L = $1.89/Gal which is a pretty normal price for gasoline in some parts of America.

  15. P.M. Ferreira Mota Rodrigues
    P.M. Ferreira Mota Rodrigues
    Maand geleden

    what sources did you used?

  16. Save 10 % of Income
    Save 10 % of Income
    Maand geleden

    I disagree with the argument FOR patents. Saying that taking away patents removes the profit motive for innovation has absolutely NO historical verisimilitude. Clothing, fire, and the wheel were innovations that came about with "profit" motives well before patents. In fact if you look at a graph showing human innovation, either world wide or by individual nations, you can not tell where patents were put into place! The reason for this is that patents are not required for innovation. However, you CAN see that patents effect the distribution of benefits from innovation. I'll give you 1 guess which group of people benefit the most from the patent system! If your looking for ways to reduce the influence of the powerful, and at the same time increase your own, go to for a list of them.

  17. VyTor BrB
    VyTor BrB
    Maand geleden

    there is no better place to acquire knowledge, on how to start a shaddow organization then your channel thx from latin-america my australian friend.

  18. Andy Spam
    Andy Spam
    Maand geleden

    The black market is the most rational market. It simply treats regulation as an incentive, and getting caught as a risk/cost of doing business.

  19. David Petrusewicz
    David Petrusewicz
    Maand geleden

    I say the Black Market is when they out law stuff, so only the out laws will have the stuffed HAHa

  20. Another Available Name
    Another Available Name
    Maand geleden

    "Black Market Economics - What Drives the Underground Economy?" The answer is money. And greed.

  21. andrew allen
    andrew allen
    Maand geleden

    In Africa having a black market ALWAYS reduces the amount of electricity generated!

  22. andrew allen
    andrew allen
    Maand geleden

    This explains why the cost of a Johannesburg marijuana joint or zol dropped to less than that of a Marlboro or Camel cigarette after growing one's own became legal😈

  23. DBen's Drawin' Vids
    DBen's Drawin' Vids
    Maand geleden

    I actually knew a drug dealer who reported his black market income on his taxes. Straight up admitted it came from crime, too.

  24. Chance the dog
    Chance the dog
    Maand geleden

    Why would you want drugs when puppy kisses are free? 🤗🙌

  25. Deepak Sharma
    Deepak Sharma
    Maand geleden


  26. Aditya SM
    Aditya SM
    Maand geleden

    tq for showing me my trade's ups and downs,my threats and my ways to climb up to the top.i ❤ EE.(jkjk ppl,dont sue me)

  27. Daisy Douse
    Daisy Douse
    Maand geleden

    It's interesting because the more I think about it the more I realize that most people in the UK will have grown up hearing about the WWII black market caused by rationing and hearing it refferd to as a black market but not really making the corilation between it and the black market for drugs

  28. Niki Maslarski
    Niki Maslarski
    Maand geleden

    I really like how you defined Rolex as Plain Looking Watches :D But I do agree

  29. Crazydog 330
    Crazydog 330
    Maand geleden

    what is the difference between a counterfeit item, and a replica?

  30. Crazydog 330
    Crazydog 330
    Maand geleden

    intellectual property schmoperty, if i made something i wouldnt mind if someone else could figure out how to make it cheaper or better lol

  31. Peter Burke
    Peter Burke
    Maand geleden

    I can buy anything I desire on the real’s not black it’s just people saying no to a government that is greedy just look at tobacco alcohol .only a total idiot would spend millions trying to patent anything.pre Covid I could even buy a holiday.

  32. Ryan Sutter
    Ryan Sutter
    2 maanden geleden

    There are even black markets for rare wood types. Brazilian Rosewood is a good example. Highly coveted for instrument tonewoods. But its illegal to buy and sell and possess anything that was cut and sourced after 1968. But it still comes around, its just not from the "usual" places....

  33. Tracy Kingsley
    Tracy Kingsley
    2 maanden geleden

    Please please please re-read the paragraph in your grade-school English textbook that explains what apostrophes are for. TLDR: Contractions, like "it's" for "it is"; possesives on a noun, like "Bob's"; NOT possesives on pronouns like "its"; NOT NOT NOT plurals like "Video's". So strange that this channel is about explaining arcane topics like economics, but can't manage apostrophes.

  34. Caner Birgül
    Caner Birgül
    2 maanden geleden

    Good video , Thank you for sharing it with us. I would have expected that you would mention the labour market at a greater extent.

  35. Saratogan
    2 maanden geleden

    Why is there a black market? For the simple reason that there are rent seekers. Everyone who is in government is by definition a rent seeker.

  36. edinho guzman
    edinho guzman
    2 maanden geleden

    energy \ gdp comparision is just bullshit! my city is getting sun minimum 10 hours even in winter and %70 of the households do have solar energy no one pays electric bills here lolz The science is just a kinda bullshit generalization simply

  37. edinho guzman
    edinho guzman
    2 maanden geleden

    blackmarket economy is the real economy the other one is a ponzi scheme controlled by elites

  38. Shady Banana
    Shady Banana
    2 maanden geleden

    Here in asia. I don't think the gov even care about counterfeight products. I mean, I've seen a cop buying those stuff.

  39. Randy Husband
    Randy Husband
    2 maanden geleden

    Let me cut through the bullshit and get to the point. Massive criminal organizations called GOVERNMENTS over-tax and over-regulate every commodity until it is impractical for an individual to sell it for a profit or to acquire it at a fair price. Therefore the door is opened to a black market, which then becomes a conduit for other illegal transactions (drugs; counterfeit goods ;ect. ). Therefore the only way to stop the black market economy is to tell the governments to kiss off and leave people alone.

  40. Jaems K
    Jaems K
    2 maanden geleden

    Colbert is a Communist...and his worker rant is for selling you on Communism in America

  41. Domingo De Anda
    Domingo De Anda
    2 maanden geleden

    Government is TREASON and doesn't reason.

  42. Mohsen Noureddine
    Mohsen Noureddine
    2 maanden geleden

    14:28 "... and filled to the brim with nasty gangsters." *proceeds to show completely normal black family walking* I'm disappointed with this decision to be honest. But not surprised. What a shame...

  43. Kabelo Serage
    Kabelo Serage
    2 maanden geleden

    a really good example i observed is what happened in south africa during the pandemic. During our lockdown, the sale of alcohol and cigarets was banned. and that caused an underground alcohol black market.

  44. M A
    M A
    2 maanden geleden

    Gun possession is very legal!!!😕

  45. Footage Factory
    Footage Factory
    2 maanden geleden

    5:14 Oh that is cheeky

  46. Aladin Shora
    Aladin Shora
    2 maanden geleden

    How is this not enough to abolish the gevernment-mandated minimum wage?

  47. totes botes
    totes botes
    2 maanden geleden

    Mexico is a perfect example..... 60% of economy is underground

  48. screaming
    3 maanden geleden

    > genuine innovation > expensive fashion lol

  49. George Samaras
    George Samaras
    3 maanden geleden

    How about rationing. Time lost to bureacracy filling form why you need the oil. Deadweight time loss.

  50. doug randall
    doug randall
    3 maanden geleden

    Until now I used to think that the Institute of Justice was making America better by fighting the stupid trend of requiring Licenses for all kinds of services. But now I don't know, sure it is good for the consumer to be able to buy unlicensed coffins on the free market or get their hair braided by unlicensed braiders. But what of the Black Marketers who used to earn a premium for selling cheaper underground coffins? Now they have to compete with new coffin makers in the free market, thus requiring them to make ever cheaper coffins at a low profit. When before they just had to undersell the licensed coffin makers and make a good profit doing it.

  51. doug randall
    doug randall
    3 maanden geleden

    A Question about the Black Market. What was The Millennium Falcon smuggling? Han and Chewy dumped it when the Evil Galactic Empire's forces got to close. They were smuggling it for the Evil Jabba the Hutt. What could be so dangerous that the Empire wanted to stop it?

  52. Tommy Detwiler
    Tommy Detwiler
    3 maanden geleden

    The government is simply the biggest mafia. If you don't pay recompense you'll get removed the same.

  53. Wing Kan Kwok
    Wing Kan Kwok
    3 maanden geleden

    The mean child optically exist because sprout lastly desert minus a drab russia. aware, enchanting distance

  54. abhay pratap singh
    abhay pratap singh
    3 maanden geleden

    Everything is good on this channe "BUT"............

  55. Matthew Horrocks
    Matthew Horrocks
    3 maanden geleden

    Great video, love your work

  56. Eric Lotze
    Eric Lotze
    3 maanden geleden

    4:56 Talking about the benefits of closed source development cycles with a desktop, consumer, FDM Printer as b-roll. That seems a bit ironic.

  57. Borgar Bakke Ekhaugen
    Borgar Bakke Ekhaugen
    3 maanden geleden

    Årige feilings can be very effective in markets that aren’t so free though. If a few corporations silently agree on too high rent or oil price, you might want a ceiling.

  58. Leander Kee
    Leander Kee
    3 maanden geleden

    Couldn't govt just cap the profit of oil companies over base cost ie oil cost and tax, to fix your problem of a base line cheaper oil cost? That is co can only obtain 30% profit per litre of oil. Instead of making it a rate per litre regardless of tax and base cost of the oil?

  59. Gerardo Guerra
    Gerardo Guerra
    3 maanden geleden

    He got us guys wink wink

  60. Aike.H.
    3 maanden geleden

    Berlin introduced a rental price cap in 2020 which limits the rents per square meter according to the quality of the building. I wonder how there might be a blackmarket developed. I know that there are people offering you thousands of euros when you can find them a flat but is this the only sketchy thing?

  61. fuckfannyfiddlefart
    3 maanden geleden

    Utter capitalist claptrap. #BanIP

  62. Kaushik Venkatasubramaniyan
    Kaushik Venkatasubramaniyan
    3 maanden geleden

    Perhaps countries should just have a moderate Value Added Tax/Goods and Services Tax combined with compulsory registering of any business and eliminate Income Tax altogether instead having a Property Tax. Complexity in taxation creates opportunity from relieving frustration!

  63. Andrzej Obama
    Andrzej Obama
    3 maanden geleden

    Black market is a real Free market. Not the overregulated racketeering set up, served by governments.

  64. AmySavage6
    3 maanden geleden

    Demonetized? I got like six adverts during the video... You really have to put effort into the titties and politics direction to get demonetized.

  65. Jade93972
    3 maanden geleden

    6:00 you aint never met a libertarian before have you?

  66. Nathan Macknight
    Nathan Macknight
    3 maanden geleden

    The aussie version of burger king foot lettuce. that heightened not on the end of sentences lol.

  67. Zaptowee
    3 maanden geleden


  68. asmit317ify
    3 maanden geleden

    Shout-out to Bhutan.

  69. Water Bird
    Water Bird
    4 maanden geleden

    make a vid on prison economies

  70. Customer Support
    Customer Support
    4 maanden geleden

    Wait why would this video get dmeonetizedv

  71. The King in Yellow
    The King in Yellow
    4 maanden geleden

    It would be nice if the benefits of a black market economy were explained.

  72. Vinnie Chan
    Vinnie Chan
    4 maanden geleden

    "if someone do you dirty it's up to you to seek compensation" ever consider a career in PR?

  73. Long Lost
    Long Lost
    4 maanden geleden

    capitalism rapidly collapses without the steady influence of black markets within every field, both legal and illegal...... even wealthy people are constantly searching for that little advantage we know of as cost $$$$......

  74. J R
    J R
    4 maanden geleden

    Why on earth do you think guns are illegal to buy, sell and own? I'm Australian and I've been involved in such transactions many times over. Not one of them was done without the full knowledge and consent of the Queensland Police.

  75. IPJ Bradley
    IPJ Bradley
    4 maanden geleden

    So this is what the great re-set is about.? looks like B Gates is losing money and wants it back. If the black market is this big soon it will be designing and manufacturing products of its own for less money. Fancy being able to buy pretty much the same products for half the price of corporations that won't pay taxes.

  76. ron gants
    ron gants
    4 maanden geleden

    When Government is oppressive, free men will find a way.

  77. short film natural es
    short film natural es
    4 maanden geleden One more to your great info videos, thanks 🙃🤗

  78. Eric Yutko
    Eric Yutko
    4 maanden geleden

    The most valuable asset in the black market is it's human resources; and it's two most important qualities are loyalty and reliability.

  79. Dofa Gamo
    Dofa Gamo
    4 maanden geleden

    bro do Kenya please, thanks

  80. Linda Tisue
    Linda Tisue
    4 maanden geleden

    In the 1990's S. Korea had really strict food import laws. Used to buy cheese, BBQ sauce, and dill pickles on the black market. Anybody else remember "The Red Door " in Itaewon?

  81. divu asmani
    divu asmani
    4 maanden geleden

    Scene at 3:37 is from Surat, Gujarat, India and it is not a Black Market 😂😂

  82. Banana Bender
    Banana Bender
    4 maanden geleden

    About taxes. In Australia, the tax code just says that you have carry on a business or employment ( if it is just a hobby you don't have to pay tax ). Whether it is illegal or not, does not matter. Good old government want their share of everything.

  83. theone9273
    4 maanden geleden

    The difference between the price floor in supply and demand is technically a shortage but contrary to what you said earlier in the video is also an enormous opportunity for legal innovation. Unsatisfied or unrecognized demand is the greatest motivation for innovation. In the example of gas supply and demand that would give something that would otherwise have an unsustainable price model a chance at economics of scale.

  84. Joe Chang
    Joe Chang
    4 maanden geleden

    forget innovations by private companies, governments crack down because black markets don't pay sales/VAT

  85. Wolfgang dayo
    Wolfgang dayo
    4 maanden geleden

    Am I the only one noticing the hand in the trunk at 10:45???

  86. K9 GAMING
    4 maanden geleden

    But if we control supply of product in high demand for more profit then should we call it black market or no?

  87. K9 GAMING
    4 maanden geleden

    2:09 driven by apple

  88. Built at Blackjack's
    Built at Blackjack's
    4 maanden geleden

    Am I right in thinking that in the 70's if it wasn't for a Black Market economy then Italy wouldn't have had an economy??? I seem to remember reading as much at the time.

  89. crispyglove
    4 maanden geleden

    Guns are illegal to own, buy, or sell?

  90. Mataio Ne'emia
    Mataio Ne'emia
    4 maanden geleden

    Anyone got a ps5?

  91. Mario Pasta
    Mario Pasta
    4 maanden geleden

    best example: rtx 3080 scalpers

  92. Thanh Nguyen
    Thanh Nguyen
    4 maanden geleden

    I too dable in the black market, way back since I was 10. Selling unlicense in residental using child labor lemonade

  93. GearHeadBoris
    4 maanden geleden

    Ok sounds good. I'm in. How do I I need more than 2 kidneys?

  94. king james488
    king james488
    4 maanden geleden

    5:05 no way that guys name is actually Dr. Wang...

  95. king james488
    king james488
    4 maanden geleden

    demand? the same thing that drives any market? also taxes on things like tobacco and alcohol are supposed to be to offset the cost to the healthcare system in countries with government healthcare... the government doesn't care if you kill yourself, just what it costs them.

    1. andrew allen
      andrew allen
      4 maanden geleden

      The government is quite happy to kill you, google US cop shootings and see armed forces deaths.

  96. David Ryan
    David Ryan
    4 maanden geleden

    I wonder what that cigar maker was doing with all those eggs.....

  97. Physiocrat
    4 maanden geleden

    Rent control is the most egregious policy.

  98. Christopher Smith
    Christopher Smith
    4 maanden geleden

    Considering that most municipalities don't assess and control their trade balances, the black markets are probably the only thing keeping them from going broke.

  99. Interstellar Traveler
    Interstellar Traveler
    4 maanden geleden

    There is no such thing as underground economy... it's all economy... it's called underground by thieving tax collectors...

  100. Cuisin' with Kev
    Cuisin' with Kev
    5 maanden geleden

    By the time you started talking about minimum wage, you had forgotten what you said about equilibrium price. Sounds like you're a bit conflicted.