>>999904
If you are talking drugs that type stuff it goes under black market/informal economy

If you like Freakonomics, one of the chapters is about a guy that wrote a book called Gang Leader for a Day. It covers drug dealing and prostitution in Chicago.

>>999938
Well I understand drugs and prostitution. It's just a simple transaction of product/service for money. That just so happens to be forbidden.

But what about stealing/fraud? There is certainly people with millions upon millions simply by stealing(as evident by such areas being valued as billion dollar industries per year)... But how does that work economically?

Basically how does the market respond to stealing/fraud in a purely capitalist way?

>>999904
>Of course in order to make money in society you need to provide value.

Hmmm maybe in a perfect market will all the assumptions but we live in the real world bob

There is lots of people who have amassed great wealth, not by providing value, but by stealing. What does that mean for an economy?

That means we get a non pareto efficent society where our ressources could have been spend better. Stealing basicly makes the economy inefficient (the effect is ofc negative)

I dont know any good books about this ill should probably look into it (never really thought about it)

>>999938
Informal market can be many things not only drugs/stealing.

The chapter about the gang is amazing tho.

>>999943
That would probably go under externalities.
Gets tricky with purely capitalist solutions because even private security can lead to a free rider. Safety and law enforcement is usually treated as a public good.

>>999945
I'm just really interested because I've read that these kinds of industries are valued at BILLIONS of dollars per year in some countries... And all they do is steal rather than create things.

And I'm extremely curious what prominent economists have to say about this. How does/should a Capitalist system react to this sort of thing, in an ideal world?

>>999952
Its basically a tax on those who are unable to defend their property.

>>999952
>How does/should a Capitalist system react to this sort of thing, in an ideal world?

Well i dont think people steal in what we call an ideal world.

But in the ideal capitalistic world people would have total information and could just hire guards and the information would make sure that nobody just went on a free ride. (IMO)

>>999957
>>999971
But I don't mean physical theft like from a grocery store which is easy to account for, and safeguard against.

I'm more getting at computers and technology. I just think it posses a very large issue since pretty much everyone is vulnerable at some point and it causes large amounts of damage.

well /biz/?

>>1000051
Hack bank accounts and steal money, they sell paypal accounts on deep Web with balances for less than the balance. Hack bitcoin shit like Mt gox niggers or get in with the white collar insider traders and arbitragers

>>1000056
Yes I know that they do it. My question is how does the market respond to it and how would it get treated in a pure capitalist system.

>>1000057
Get the fuck outta here with ur shit
The market treats it as illegal and on shady fucks get involved?
Pure capitalist system? Sell ur hacked buttcoin to whoever fucks highest bidder, knowing it will be below market p cause it's stolen. Stolen shits cheaper u Retard fuck

>>1000073
Yeah I know that... You completely missed the point of my question though.

>>1000085
Ask it properly u chink

>>1000073
He mad

>>1000057
So lets say that you cant stop people from stealing your shit (virtual stuff).

Banks would just increase interest rates on outgoing loans and decrease interest rate on saving accounts etc.

Or they would increase fees if the market was geared for that.

You might be able to argue that stealing is a kind of "free riding" bc you gain from not following basic laws. So who is it gonna hurt? Everybody who does follow the rules