Question

Luxurious lifestyle is one of the major causes of corruption. Justify the statement.

Answer 1

Answer:

This is more than a rhetorical point. It is almost certain that some of the profits made by all sellers of luxury goods come from criminals who have siphoned off government funds. Rather than being spent on health, education and other social welfare programs, the money has been spent on luxury goods.

Luxury goods are used to facilitate corrupt transactions and launder dirty money. Using data for 32 high-income and emerging economies, we have found a strong correlation between luxury item expenditure and societal corruption.