Understanding Basic Economics

LASHAUN BERRY

July 12, 2014

DeVry University

Economic System in Crisis, Socialist System in Emergency Situation, and the Law of 

Supply And Demand 

This essay will discuss the economic system in crisis, socialist system in emergency situation, and the law of supply and demand.   The first topic a crisis when it comes to epic proportions dealing with a hurricane, a flood and a blizzard. The second topic of this essay will give an explanation on the incident that occurred in Haiti in January of 2010 and why the socialist system might be the best in responding to the needs of those people struck in by this incident. Third but last topic will discuss the use of law of supply and demand and why the cost to heat our homes and businesses goes up in the winter time. 

Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why?

When it comes to natural disasters such as a hurricane, flood, blizzards, and forest fires, the best suited system would be the socialist system. The government plays a huge role as they aid in rescue and care for the people affected and also provide some sort of funding to reform the area destroyed by this crisis.

But for any economic issues in regarding reforming the area(s), either the socialist or communist system would best suited in handling these crises and likely prepared for any disaster situations way. In compare and contrast of the two most important economy system the capitalist economy system is the production to generate profit as socialist economy system is the production of goods and services for direct use. Therefore, with any natural disaster that occur, socialism educates people in helping others during the time of crisis (HAYASHI & SOO, 2014).

Describe and explain why a socialist system might be the best in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January 2010....