Business

Economics

There four (4) different economic systems that exist, which are: Traditional Economic System, Command Economic System, Market Economic System and Mixed Economic System. Traditional Economy still produces products that are a direct result of their beliefs, customs and religions. Command Economy is where the government has the final say of what should and shouldn’t happen, more of a centralized power. Market Economy is more like a free market where the people determine how the economy is ran, how supply is generated and what demands are necessary. Mixed Economy is a mixture of market and command economy, which is more or less free from the government.

When handling a crisis of epic proportions you tend to wonder, which economic system is best suited for handling those situations (flood, hurricane, blizzard, forest fire)? The best economic system to handle these types of situations is the socialist economic system. In times of crisis of epic proportions the government usually steps in to help those in need by sending out nonprofit organizations equipped to handle the crisis and take care of the people who have been injured and/or are in need of products and services. The socialist system supports the political philosophy of socialism, which is a government system that advocates community ownership and control of all lands and businesses rather than individual ownership.

The socialist system would have been best in responding to Haiti after the earthquake hit in January 2010. First, a socialist system can help a country concentrate efforts and major resources on major tasks. The central government gave full play to the superiority of the socialist system by mobilizing the entire country to respond to effectively and efficiently to the disaster. The survivors where in need of food, fresh water, medical attention and clothing during this trying time. The governments of the richer counties are able to provide these things with a command to the...