Economics in Society

Economics in Society

Alisha Winfrey

DeVry University

Economics in Society

Economics is the study of how a society uses its scarce resources to produce and distribute goods and services. Whether we realize it or not, economics plays a major role in how we navigate through life and can often dictate how we deal with crisis. Economics also is the foundation for supply and demand. It all goes hand in hand. There are two categories of economic systems and they are free-market system and planned system. According to merriam-webster.com, free-market system is “an economic market or system in which prices are based on competition among private businesses and not controlled by a government.” Dictionary.com states that planned systems are “an economic system in which the government controls and regulates production, distribution, prices, etc.” Which system is best is a matter of opinion, but there are pros and cons to both.

Which Economic System is Best Suited for Handling a Crisis of Epic Proportions?

In my personal opinion, the free-market system would be the best suited for handling a crisis of epic proportions (hurricanes, flood, blizzards, forest fire, etc.). I believe that this is the best system because individuals in that community and people affected by the crisis don’t have to wait for the government to assist them. They have the power to get the proper resources to help others in their communities in an expeditious manner. Their success and/or failure are based upon them and them only. There will be no room to blame the government like we usually do because it’s basically on you. With the planned economic system, the government has all control of resources and when they’re willing to help others out. Hurricane Katrina in 2005 I feel is a perfect example of a planned system. The U.S. is based on free-market, but in this instance I feel as though the government didn’t do anything to help them right away. Waiting around for the government to help can be...