Essay About Total Social Cost Of Binge And Various Societal Costs

Excessive Alcohol Consumption by Youth
Part 1There are various societal costs related to excessive alcohol consumption by youth. The total social cost of binge drinking from 2010, which is the most recent figure for this statistic, is $14.352 billion. With 29.24% of binge drinkers accounting as youth (15-24 year olds), thus it is assumed 29.24% of binge drinking costs (which is $4.211 billion) is the societal cost of youth binge drinking (refer to calculations 1).Those bearing social costs of youth binge drinking are the criminal justice system through police time, child protection services, prisons and insurance administration. It is clear from table 1 that youth binge drinkers utilise $0.868 billion dollars of the criminal justice system total expenditure. Secondly youth binge drinkers causing traffic accidents- accounted $1.074 billion of the total traffic accident costs. Due to fatalities, vehicle damage and other related costs. Lastly, youth binge drinking bears costs on private health insurers, as money is spent on these easily preventable accidents. It is evident from table 1 youth binge drinkers accounted for $0.495 billion on overall healthcare expenditure. There are various other minor societal costs that altogether result in $1.774 billion dollar cost due to youth binge drinking.Although policies have been established to prevent the social costs of youth binge drinking such as the National Binge Drinking Strategy in 2008, and the National Alcohol strategy 2006-2009. The government donated money towards addressing the harmful binge drinking culture among young people. There was also the 2008 Alcopops tax where there was a 70% tax increase on pre mixed drinks. However it is clear from figure 1 that the amount of alcohol consumed by youth has continually increased each year, the graph only displays youth for 18-24 as this was the most relevant data available for this statistic. Subsequently there are various issues associated with youth alcohol consumption from large societal costs to problems of alcohol consumptions not decreasing after policies have been activated.Calculations 1:Youth population = 2992197Percentage of youth who binge drink= 45%Number of youth who binge drink= 0.45×2992197= 1346488.65Total population= 22497721 Percentage of population who binge drink= 20.4%Number of population who binge drink= 0.204×22497721= 4589535.084% Binge drinkers who are youth= (no. Of youth binge drinkers/ no. Of population who binge drink) x 100%        = (1346488.65/ 4589535.084) x100%        = 29.34%                           Table 1Specific social costBinge Drinking cost (billion)Youth Binge drinking cost (billion)Health Care$1.686 1.686 x 0.2934= $0.495Traffic Accidents$3.66 3.66 x 0.2934= $1.074Crime Justice system$2.958 2.958 x 0.2934= $0.868Other minor costs$14.352 – (sum of above costs)= 6.0486.048 x 0.2934=$1.774YearRisky/High Alcohol consumption 18-2419959%200112%2004-200515%2011-201218.8%Figure 1[pic 1]Part 2:In order to decrease the over consumption of alcopops a reduction in price needs to occur as this will lead to less consumption of alcopops and therefore a more socially efficient outcome. However the right economic model needs to be developed to ensure the goal of a socially efficient economy is achieved.