Outlawing controlled substances (Essay Sample)

Effects of Outlawing Controlled Substances on Black Market Name Institutional Affiliations Effects of Outlawing Controlled Substances on Black Market A black market also referred to as an underground economy or a shadow economy is the type of market whereby regulations compliant with constitutional laws are practiced. It defines a set of goods and services whose production has been banned. It also means that the distribution of these goods is outlawed making participants continue practicing the business "underground" or in hidden places. This is usually the case because the business of the products is illegal. The banning of given products like tobacco products and specific alcohol is critical in causing an underground market (Reuter, 2013). People addicted to the products do not stop using simply because they are outlawed. They will continue using in secrets. Similar to various drug peddlers, banned goods are in a position to get sellers and buyers who are ready to engage in the business at exorbitant prices. The price of the banned products does not regulate or moderate when at rare or the demand is high. Instead, when the demand for the products increases, the participant (sellers), make a lot of money. In most circumstances, the banned products range from opium, cocaine, and heroin. However, with the current legalization of marijuana in many steps such as California, the demand will not be as high as it was previously (Garcia, 2013). The market of marijuana is yet to be exploited to the maximum, thus, still making it a lucrative form of business. Contrabands refer to a collection of goods which are very dangerous in nature. The law has classified such goods as not fit for use, and therefore, forbidden. This category may comprise tobacco products and alcohol. The category may be cumulative of all other smuggled goods, forgery, stolen or other illegal goods. The black market has the capacity to grow and become so big on its own. In the event, it brews cartels, gangs and other dominant players just like any other industry (Garcia, 2013). It also brings about corruption as many police officers are compromised within their lines of work. Many prominent leaders are threatened or offered incentives in form of money, which serves in exchange of their silence. Leaders who refute the offered financial incentives risk the loss of their lives. Basically, this may sound like a drug drama, though this is the reality of what exists all over the world. A black market exists virtually in all countries of the world. Some of the black markets function on a very large scale, for in...