The black economy is a term used to describe economic activities that occur outside of the formal economy and are not recorded by the government for tax or regulatory purposes. This type of economy is also referred to as the underground economy, shadow economy, or informal economy. The black economy is an important concept in economics, as it can have significant impacts on economic growth and development.
Definitions
The black economy is defined as economic activity that is conducted outside of the formal economy, often involving cash transactions that are not reported to the government. This can include activities such as unreported income, illegal trade, and informal labor. The black economy is often associated with organized crime, tax evasion, and corruption.
Origin
The term “black economy” has its origins in the 1960s, when economists began to study the phenomenon of economic activity that was not captured by official statistics. The term gained popularity in the 1970s and 1980s, as the size of the underground economy grew in many countries.
Meaning in different dictionaries
The black economy is defined differently in different dictionaries. The Oxford English Dictionary defines it as “economic activity that is conducted outside the formal economy and is not recorded by the government for tax or regulatory purposes.” The Merriam-Webster Dictionary defines it as “an economic system characterized by illegal or unreported transactions.”
Associations
The black economy is often associated with illegal activities such as drug trafficking, human trafficking, and money laundering. It is also associated with tax evasion, corruption, and organized crime. The black economy can have a negative impact on economic growth and development, as it can lead to a loss of tax revenue and a lack of regulation and oversight.
Synonyms
The black economy is also known as the underground economy, shadow economy, informal economy, and parallel economy.
Antonyms
The antonyms of the black economy are the formal economy and the legal economy. These terms refer to economic activity that is recorded and regulated by the government.
The same root words
The term “black economy” is often used interchangeably with the terms “gray economy” and “informal economy.” These terms all refer to economic activity that is not captured by official statistics.
Example Sentences
- The black economy in this country is estimated to be worth billions of dollars.
- Many people work in the black economy because they cannot find formal employment.
- The government is cracking down on the black economy by increasing penalties for tax evasion.
- The black economy is a major source of funding for organized crime groups.
- The growth of the black economy is a sign of a lack of trust in the formal economy and government institutions.