What is an example of economic extortion?

Economic extortion occurs when an individual or group threatens to harm someone’s business or financial interests unless they receive a payment or some other form of benefit. In this instance, the example involving a government official demanding money in exchange for making a business decision exemplifies economic extortion. The official leverages their position of power to coerce a payment, thereby directly influencing a decision that can significantly impact the company’s operations or financial standing.

This situation highlights the coercive nature of economic extortion, where the official uses their authority to extract funds under the threat of adverse consequences. It emphasizes the illegitimate use of power to extract money, which is a core characteristic of economic extortion.

Other options provided do not illustrate the same level of direct coercion for monetary gain in the context of a threat to business operations. For example, a company making an unsolicited donation to a charity could be viewed as a goodwill gesture or part of corporate social responsibility, lacking any element of coercion. A worker demanding money to conceal business mistakes may hint at extortion, but it usually revolves around personal employment-related issues rather than the systemic and power-driven dynamic highlighted in the correct answer. Lastly, management pressuring employees for higher productivity pertains more to workplace performance than to ext