ThinksMarkedly wrote:But I'd ask those corrupt enterprises: would you actually make more money in a legit business with a bigger market?
Theemile wrote:And the answer in almost all cases is no - corruption stifles economies. Unfortunately, the people who use such tools never seem to be able to see that a small piece of a massive, dynamic economy is usually bigger than a massive piece of a small corrupt one. In addition, such a legal route, is less stressful and easier than illegal and immoral business practices are.
ThinksMarkedly wrote:So you're agreeing with me: going legit could get them more wealth in a bigger market.
Isn't the answer: "it depends"?
If the corrupt enterprise is supplying something that is illegal, then the possible tax-free profits could be much higher than for any possible legitimate business. There is no way to legally supply that thing, so there is no way to go legit in that market.
If the government is already corrupt and there are unethical competitors, then profits will decrease if the business tries to be legit; thus the answer is "NO" in almost all such cases. This is a variation of the prisoner problem: unless everyone becomes ethical, the ethical will lose to the unethical.