The Economic Repercussions of Drug Addiction In Our Society: An Analysis Of The USA

Drug addiction can create negative effects with relationships, personal, and professional lives. This guide will discuss the economic repercussions that may be caused by addiction here in the United States. It’s important that those who may be dealing with addiction be it in the early and late stages should get the help they need.

They may have lost their jobs due to their addiction and they may be seeking addiction treatment in the aftermath. You’d be surprised what drug addiction can do to the economy. Keep reading to learn more about the specific facts that tie into the two.

Substance abuse and the cost of health care

Health care is already costly regardless if the issue is not addiction related. However, the financial implications still exist when someone is being treated for drug or alcohol abuse. Nearly 25 million Americans have used illicit drugs while 10 percent of American men and 3.5 percent of women are known to drink heavily on a regular basis.

Because of this, more hospital admissions occur because of intoxication. In 2012, more than 700,000 patients were treated in the hospital due to opioid-related issues. Medicaid and Medicare had footed the bill for at least one-third of those expenses.

Not only that, the long-term health effects such as heart disease, cancer, depression, and dementia have contributed to long-term expenses that are adding up almost every month. Not only that, substance abuse has been associated with some of the top leading causes of death including heart disease, cancer, and stroke among others.

Substance abuse and the costs businesses face

Employers are already facing challenges with employees that are dealing with drug and alcohol addition. Nationwide, the costs have been known to total at around $135 billion. Those who are addicted to drugs or alcohol were known for being less productive during their working hours.

In one report, about 15 percent of workers had been known to appear to work under the influence of alcohol or drugs. At least 10 percent have reported that they had shown up to work hungover at least once. The reduced levels of productivity can be linked to poor performance, which can lead to plenty of monetary costs for a business.

Marijuana and opioids are the top two drugs that are abused in the United States. The two have been responsible for $25 billion in losses amongst businesses nationwide. Employees who have died from an overdose (leading to employment loss) accounts for $11 billion.

As you can see, even the overdose death of an employee can provide a negative financial effect on the business they were employed with. This can be one more reason that employers should emphasize that any of their workers who have an addiction should seek addiction as soon as possible.

If there are funds and resources available, some of the costs can be covered by the employer (if they so choose to do so). The good news is that health insurance companies have done their part to alleviate any financial pain businesses have suffered due to an employee’s addiction. In 2009, they paid out $24 billion in an effort to help fight against substance abuse disorders.

Not to be outdone, Medicaid paid out one-fifth of its funding to help out the 12 percent of beneficiaries that were fighting addiction. Even with a ton of money being paid out, it did its part in helping people fight their addictions without their employers having to shoulder much of the financial burden.

Without the insurance companies and Medicaid providing their slice of the funding, this would have had a negative impact on the economy and make it a challenge to recover from it. Addiction treatment has proven to cut workplace costs related to addiction. Treatment itself has shown that it can also reduce the numbers of unemployment while increasing productivity and wages.

The costs of drug-related criminal activity

Of the crimes committed in the United States, 18 percent were crimes perpetrated by someone who was dealing with a drug addiction. Because of their need for more drugs and the lack of funds, they can resort to such crimes such as property theft, burglary, and robbery. About three-quarters of inmates who are incarcerated in the United States with mental issues have a drug addiction to go along with it. However, half of those will not have mental issues but have a standalone drug problem.

Criminal costs associated with drug abuse have ranged from $60 billion to $120 billion. Factored into these figures include court costs and costs to the victims among others.

What can be done to reduce the costs due to addiction?

There are some ideas that can be useful in terms of reducing the costs of addiction. However, all of them are pertaining to alcohol. They include but are not limited to the following:

• A tax increase on alcoholic beverages
• Restriction on alcohol sales (including specific hours and days of when they can be sold)
• Allowing a certain number of businesses to sell alcohol within a certain area
• Holding retailers accountable for any damage or injuries that may have occurred when customers were intoxicated or under the age of 21

These are some policy ideas that may have been implemented in parts of the country. However, they may be met with resistance amongst many Americans.

Final Thoughts

The economic impact on drug and alcohol addiction has been costly. With billions of dollars lost, it doesn’t supersede the fact that more lives are being lost due to it. While money can be regained, lives cannot.

That’s why it is important for employers to do their part to ensure that their employees get the help they need. Not only that, the emphasis for addiction treatment should be greater. If more people get the help they need, then there may be less crime, less death, and less costs against the economy.

Combating drug addiction on all fronts can be a challenge. But it can make some changes if more is done in the future.