Question

what drugs do the the economic of the country like USA ?

Answer 1

Drugs and narcotics are a big problem for countries no matter big or small. The United States is no different in this regard and the menace has only increased over the years. Most countries see reduced productivity, premature deaths and high crime rates because of drug addiction and this has largely also been found in the United States.

While the country is regarded as one of the best in terms of growth, technological innovation and development and it shapes how the world works, the country has its own problems to deal with when it comes to substance abuse and its resultant consequences on the economy of the nation.

The effects of Narcotics and Drugs on the US Economy are as described.

(1) Implications on Cost of Healthcare & Inflation

It is a well-known fact, that insurance companies across the United States have increased the overall cost of healthcare administration because of the high cases of substance abuse. The resultant is that cost of healthcare impacts other items as well thus increasing the overall inflation in the country which is accompanied by higher social security cost and rising premiums for most buyers.

(2) Legal Implications & Relationship of Drug Abuse with Crime Rates.

It is a well-known fact, that a majority of car accidents and other crimes take place because of drug abuse. This results in major legal costs for all parties involved and the government and the legal systems gets clogged because of the same. Rising cases cause investors to shy away from the US markets of certain areas since crime rates are relatively higher leading to economic losses.

(3) Reduction in Productivity and Labor Non Participation

The productivity of the country reduces because of premature deaths, and overall because people do not contribute to their maximum potential leading to lesser output than optimum. This has major implications on the economy. Finding a replacement employee is not that easy and premature deaths cause a reduction in the overall employee capacity leading to problems for the nation. The United States has rapidly been effected by such problems due to drug abuse.

Since a chunk of the population is unable to participate because of healthcare related problems the cost of hiring labor increases.

(4) Impact of Drugs on the Environment

It is a known fact that the very production and disposal of drugs is done in such a manner that it can potentially disrupt water bodies and landfills causing major issue for the economics of the nation.

The misuse of land and disposal can cause problems in the ground waters and beyond which may result in significant problems for people who may not have directly consumed the item at all.  

The environmental implications thus cause direct damage to the economy of the nation.

(5) Rise of Black Money

Even when most states of the United States have legalized the recreational use of Marijuana other drugs exist which cannot be sold in white. This results in leakages of money from the economy which never returns to the banks since this money is illegal in nature. Most drug dealings happen in cash and the resultant is that the country generates so much black money that the economic growth is directly impacted. Same is the case in the United States which has largely suffered because of easy transit of drugs into the country from the neighboring country of Mexico where the drug menace is a very big problem.

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