The Effects of Alcoholism on Society – the Economic Impact of Alcoholism

and experience. As the disease progresses, the earnings potential of the alcoholic lessens. The Effects Of Alcoholism On Society

Alcoholism and employment have a causal relationship. Alcohol abuse negatively affects employment, but lack of work also affects drinking habits. Depression and stress resulting from unemployment can lead to increased reliance on alcohol and other drugs. Alcoholics can enter a vicious circle in that the longer an individual is unemployed, the more advanced the state of alcoholism. As the disease becomes more debilitating, becoming employed is increasingly difficult.

Recent medical research has found that moderate alcohol use leads to health benefits such as reduced risk of cardiovascular disease. Since healthy employees are productive employees, it is not unreasonable to suggest that moderate drinking can lead to greater productivity, and therefore higher earnings. In fact, there is evidence to support the hypothesis that alcohol and earnings have a parabolic relationship. That is, teetotalers and heavy drinkers both earn less than moderate drinkers.

In fact, studies show that non-drinkers earn between eight and ten percent less than moderate drinkers. It has been estimated that wages peak for individuals consuming an average of 2.40 drinks per day, which is consistent with the medical literature. Individuals who do not drink at all may miss out on the health benefits of moderate drinking, as well as on social opportunities and networking to further their careers. Conversely, alcoholism deteriorates one’s state of health. As well, alcoholics may endure public shame because of their condition, and this can decrease the opportunities to advance their careers at social functions.

It is vital to realize that a future alcoholic may currently display only minor symptoms of problem drinking. Alcoholism is a disease, and when left untreated can have ravaging effects on the individual’s physical and mental states. These effects can have significant negative impacts on employment, productivity, and earnings.

The lost productivity and lowered earnings of alcoholics are significant costs that have merited recent attention in the economic literature. The alcoholic and his or her family suffer from lowered earnings. Employers and co-workers suffer from the alcoholic’s lost productivity. In addition to the well-known costs of alcoholism, illnesses, automobile accidents, and crime, problem drinking leads to decreased productivity and therefore, lower wages and earnings. The Effects Of Alcoholism On Society

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