Problem
Approximately $1.2 billion dollars in illicit drugs are smuggled into Australia by sea. While most of the money made from the illicit drugs sales leave Australia, around 20% of the money remains in the country. The Australian government has decided to add a specialised task force to the current government program to tackle these crime rings. This will increase the cost of the program from $2.5 million per year to $5.5million per year. The additional resources are expected to reduce drug related violence and healthcare costs by a total of $3 million per year.
1) What is the net social benefit resulting from the added specialised task force? = $ (.......... ) million. Provide a detailed explanation of the considerations in your decision.
2) What are the implications of this policy from an ethical and social perspective. Provide a detailed answer in your spreadsheet = ( ............)
3) Provide a detailed explanation of your approach to this question in your spreadsheet.