The world economy has been booming in recent years, but the rich are getting richer and the poor are getting poorer. It may seem like we’re on an upward trajectory as a species, but it doesn’t take much digging to see that something sinister is going on behind the scenes. The underworld is using its resources to destabilize the economies of nations around the world and this could have disastrous consequences for us all. Click the link below to learn more about it!
Cartels and organized crime
Although it may seem like an underworld too far removed from our daily lives to have any impact, cartels and organized crime have their fingers in many pies when it comes to the world economy. From drug trafficking to sex trafficking, these criminal enterprises generate billions of dollars in revenue each year. And where there’s money, there’s always someone who wants to launder it. This is why businesses that deal in cash are often used as a cover for these illegal activities.
Money laundering
Criminal organizations drain billions of dollars through the global financial system every year. This dirty money supports the economies of countries around the world, often in unexpected ways. In Canada, for example, drug dealers laundered an estimated $22 billion from the Vancouver real estate market between 2007 and 2014. The resulting glut of luxury homes has pushed prices down and discouraged young people from staying and buying real estate. The US, meanwhile, is home to more than 1,000 millionaires with ties to organized crime – most likely due to the drug trade – and these individuals reportedly contribute up to $10 billion a year to the country’s GDP (gross domestic product). Their share will most likely continue to grow in the coming years as cannabis prohibition unfolds in North America and underworld businesses find new ways to launder their money – and grow theirs.
Extortion
A popular method of organized crime is extortion, where businesses or individuals are forced to pay money for protection. This tax may be in exchange for physical security or for the business not to be harmed. Extortion creates a vicious cycle of corruption, as those who pay into the system are often expected to continue doing so, and those who don’t face retribution. In some cases, entire industries have been controlled by criminal organizations through extortion.
White collar crime
Billions of dollars are lost to white-collar crime every year. This crime takes many forms, from embezzlement and fraud to money laundering and identity theft. And while it may not be as violent as other types of crime, it can have a devastating impact on individuals, businesses, and economies.
Tax evasion
The first and most obvious way the underworld affects the economy is through tax evasion. This is when businesses or individuals don’t pay their full share of taxes, costing governments billions of dollars each year. This lost income means less money is available for things like infrastructure, education, and social programs. And it’s not just small businesses and individuals who avoid taxes; some of the world’s largest companies have also been caught doing it.
Narcotics
Billions of dollars worth of narcotics are produced and traded worldwide each year. This illegal activity has a profound impact on the global economy. For one thing, it encourages corruption and instability in countries where drug production is rampant. It also supports entire industries, from arms dealers to money launderers. And it provides a huge source of income for organized crime syndicates. All told, the underworld economy is worth trillions of dollars every year.
Forgery
In 2017, the International Chamber of Commerce estimated that counterfeiting and piracy cost the global economy up to $1.2 trillion annually. That’s about 2.5% of world GDP! And it’s not just big businesses that are suffering; small businesses and individual creators are also hit hard by these illegal activities.
