The Cost of Abuse and Addiction

The Office of National Drug Control Policy estimated that, between 1988 and 1995, Americans spent $7 billion on marijuana, $9.6 billion on heroin, and $38 billion on cocaine. But, in addition to the amount spent on the substances, there are a number of other hidden costs of substance abuse and addiction – costs that likely affect every taxpayer, even those who do not have problems with abuse and addiction. According to the National Institute on Drug Abuse and Alcoholism (NIDA), the total cost to society from alcohol and drug abuse in 1992 was $245.7 billion, $97.7 billion of which was related to drug abuse. This amounted represented a 50% increase over data from 1985. The study also determined that 46% of the costs that resulted from this one-year period were covered by the government. But where do these costs originate?

• Law Enforcement: From court expenses to legal services, crime-related costs to society represented more than 50% of drug-related costs. This includes loss of productivity (see below), correctional facilities and staffing, damage to property, and police time.
• Lost Productivity: Both perpetrators and victims of drug-related crimes are likely to be less productive as a result of the crime or the subsequent incarceration period. This lost personal and professional time also represents a loss to society. Lost productivity may also result from illnesses related to drug abuse or addiction, which represented nearly 15% of the cost to society in 1995.
• Health Care Costs: When substance abusers require urgent medical attention and visit an emergency room, they will likely be accepted regardless of their ability to pay. Their expenses will either be covered by taxpayers or the hospital (which may increase the cost of care for those who can pay). According to the NIDA report, health care expenditures represented just over 10% of the costs related to drug abuse specifically.
• Early Death: About 15% of the costs to society were related to premature deaths of drug users