Wednesday, March 25, 2015

Episode 156, Black Markets--Dodging the Command Economy

Black markets occur when the government makes the transaction of a good or service illegal.

But illegality, while necessary, is not sufficient. The good or service must be highly desirable, and it must benefit both parties to keep the government out of the transaction.

Most of the time, black markets surface where the local government is causing shortages. The Soviet Union was notorious for shortages, and the emergence of black markets to fill the gaps.

In this show I talk about shortages and other mechanisms that are likely to cause black markets to surface on a wider scale here in America, how you can get ready for when they do, and how you can profit from them.

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