Illicit drugs are a real challenge to the society and the economy. Regarding people’s health, addicts are generally weak and have to undergo expensive medication and rehabilitation. But perhaps it in the area of business where these effects have been experienced. According to Port St. Lucie rehab, the trade in drugs and other narcotics has adverse consequences for firms. However, it is very easy for the general population to overlook this reality. Take a good example of open street drug peddling and other streets which are commonly known for drug trafficking. In these areas, few businesses are willing to open due to the insecurity and bad reputation associated with the trade. That is not all. Clients are not willing to visit these streets as they do not want to be associated with drugs. The overall effect is the reduced attractiveness of these zones to business which serves to make them less attractive to investors. Property values might go down in these areas.
In large-scale plantations of cannabis, a lot of power and electricity is used to light up the farms. This electricity is usually diverted from main power lines and can be used to for constructive work. As a result, there is a substantial loss of revenue to the power companies since they are not in a position to charge these illegal businesses. Legal customers have to go without power for many days which hurts their business and their day to day lives. The existence of such an illegal market serves to take away resources which can be used to boost the legal economy. The government is a major casualty of these activities since it loses a lot of revenues from these peddlers.
The illegal drug business is vicious. Proceeds from such enterprises are diverted back into the illicit economy while others are taken to the legal marketplace. Drug trafficking is the most significant cause of money laundering across the world. Proceeds of drugs are usually used to make property acquisitions. The overall effect is the rise of property prices to unimaginable levels beyond the reach of those who earn their income genuinely. It can fuel a burst in the property market which can have adverse effects on the economy. When these funds get into the legitimate market, they distort the investment decisions. Decisions are made in a bid to reduce the risk associated with the detection of these illegal activities. Handlers of such cash can undercut other players who are forced out of the market. The proceeds can also be used to rig the tendering processes or to finance crime which hurts the economy.
Drug lords use their vast amounts of money to bribe government officials. That way, they can kick out legitimate business people. This serves to undermine the credibility of democratic institutions. Drugs are costly. Addicts can use those funds to invest in the economy and help to grow a nation. Additionally, the cost of treatment is very high. It costs the government and private households billions of dollars on an annual basis to treat drugs related complications. On the part of the government, a lot of budgetary allocation goes to fighting this menace including the cost of prosecuting the alleged criminals. Drug addicts are not economically useful. It represents a significant loss in labor which can be used to build the economy.