Given the public healthcare system in New Zealand, explain the private and social costs of recreational cannabis use in New Zealand.

In the essay, you are to discuss the economic implications of legalising cannabis (marijuana).

In 2012, Colorado and Washington became the first two states to legalise the recreational use of cannabis in the United States. Retail sales of cannabis in Colorado commenced in January 2014.


1000 words is max word count but can over the word count by 10%, so 1100 words is absolute max.

Task:

Read two articles

Question : 

  1. Given the public healthcare system in New Zealand, explain the private and social costs of recreational cannabis use in New Zealand. Explain with the help of a diagram whether the equilibrium quantity of recreational cannabis use in a perfectly competitive market is too low or too high compared to the social optimum.
Helpful tips:
Excellent discussion of the externalities that recreational cannabis use may exert upon the public health system in New Zealand, with reference to diagram. [6 marks] 
• Private costs of recreational cannabis use? 
• Social costs of recreational cannabis use? 
• How does this impact the public health system in New Zealand? 
• Draw a diagram, this will help you explain the equilibrium quantity vs social optimum.



  1. Structure Note: This essay assignment does not require a standard structure of introduction, body and conclusion; however, please read the marking scheme below, as other aspects of formal essay writing, such as paragraphing and logical sequencing of arguments and referencing, are required as part of this assignment.
  2. Diagrams should be AUTHENTIC (not copied). Diagrams may be hand-drawn but must be scanned and inserted into the document. If you photograph your diagram and insert it as a picture into your document, please ensure appropriate exposure so that the diagram is clear and readable.

Case :

Cannabis — or marijuana, or pot, or weed — comes from the Cannabis sativa plant and is one of the most widely available illicit drugs in New Zealand. Until 2020, Penalties associated with cannabis range from a $500 fine for possession to a 14-year jail term for its supply or manufacture.[1] Legalising cannabis has been a heavily debated topic in New Zealand for decades.[2]

The 2020 New Zealand cannabis referendum was a non-binding referendum held on 17 October 2020. The official results were released on 6 November 2020 with 50.7% of voters opposing legalisation and 48.4% in support (with 0.9% informal votes). Auckland Central MP Chlöe Swarbrick, a spokesperson of the Green Party, says “as a country, we’ve come so far in understanding the need to reduce the harm of drugs by bringing them out of the shadows.” SayNoToDope campaign spokesperson Aaron Ironside says that the mental health system is strained, and legalising the drug would have added to social harm. “The use of cannabis is associated with increased risks of a number of adverse outcomes including educational delay, welfare dependence, increased risks of psychotic symptoms, major depression, increased risks of motor vehicle accidents, increased risks of other illicit drug use, and respiratory impairment,” Ironside said.[3]

Prime Minister Jacinda Ardern has said some of the issues legalisation sought to address – including referring cannabis users to health services rather than the justice system – will be looked at regardless of the referendum result.[3]

Reference: 

Marking rubric :
• Explanation and Analysis: Provides an excellent explanation of the topic with clear and insightful analysis.
 • Use of Economics Concepts and Theories: Demonstrates a thorough understanding and application of relevant economics concepts and theories to answer the question, showing a deep grasp of the subject matter. • Supporting Evidence: Uses strong and credible sources to support the arguments, with clear and appropriate citations, effectively integrating evidence into the analysis. 
• Relevance to the Question: All content is highly relevant to the question and directly addresses it, consistently maintaining focus throughout the essay.

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