underground econ

underground econ - Interface with Underground Economy: -...

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Interface with Underground Economy: - retail informal sector - criminal wholesale sector - corporate crime - offshore havens - illegal profits - political payoffs Governments as Promoters of Vice Dilemma: fiscal needs versus protecting public - strategic objectives of tobacco/nicotine (aboriginal origins- peace) US Civil War World War I World War II- Black market currency brand loyalty spread habit to women *they learned during the wars that they could keep the soldiers going with tobacco, even if they were hungry, tired etc. *filters were invented because of women's lipstick, so they dont get tobacco all over lips etc, not at all because of safety, original smokes made with asbestos Regulating Vice Late 20th Century Crisis 1) rising taxes 2) loss of old markets 3) barriers to new markets - high domestic taxes - protection to national firms - local preferences ("black" versus "blond") 4) public health concerns of - workers - consumers 5) ecological issues (deforestation, soil exhaustion) Response by the Virginia Cartel
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underground econ - Interface with Underground Economy: -...

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