Economics, Natural Disaster and Supply and Demand

Economics, Disaster and Supply and Demand

Dana Cranford

DeVry University

Intro to Business & Technology

November 2nd, 2014

Economics, Disaster and Supply and Demand

There have been many discussions about what type of economy is better overall. There are many different criteria can be used to form an opinion on which system is better. One way that I believe that this can be judged is by evaluating the way that the country under the economic system serves it citizens in their greatest time of need. One of the most notable times of need in a person’s life is the time directly following a natural disaster.

Disaster, Which Economy is Better?

In my opinion countries with a socialist economy are better capable of handling major natural disasters. Though an argument can be made for communism and capitalism, I do not feel that communist and socialist are able to better handle disaster than the socialist. This is because in I believe the major factor of effectively handling any crisis is a balance of power. Communist have complete control and therefore can be more effected by an individual agenda and corruption caused by it. Capitalist economies are open to similar problems because in a totally free market companies are able to set their own prices and this can sometimes lead to price gouging. I believe socialist can better deal with disasters of epic proportions because according to Courtland L. Bovée and John V. Thill in socialist economies government controls the majority industries that are vital to social survival (Bovée and Thill.) The reason that I believe this makes a difference is because the government will have better control of the vital industries than if several different companies owned them.

Socialism, Better for Disaster Recovery

These, along with others, are some of the reason that I believe that Haiti would have fared better during its January 2010 earthquake if it would have had a socialist economy. A free market economy like we...