Economic System and Supply and Demand

Introduction

In times of natural disaster or epic crisis in the world today, a countries economic system can affect the severity of the results, how they survive, and how they recover and move on. While one economic system might be best in one situation, that might not necessarily hold true in all instances. For example, a mixed economic system would most likely respond and adapt best to national disasters, but in a socialist system, equality is of utmost importance and there is equal access to goods and services, benefiting all individuals regardless of income or means. In any economic system the laws of supply and demand are affected by the quantity of a product produced and the need and ability to pay for the product. This can be affected in times of natural disaster or in our day to day living as with the need for heat in the winter.

Economic System Best Suited for Crisis

A mixed economic system is a combination of both a capitalist and socialist system which allows some economic freedom but also allows for the government to be able to step in and interfere (Mixed Economic System, n.d.). The government’s job is to help the economy but to also help the consumers which can be done through supplies, shelter, or financial assistance programs. Businesses are also encouraged to continue to make a profit which “ensures an adequate supply of essential goods and services while preserving the profit motive” (Lutmer-Paulsen, n.d.). This is the type of economic system which is best prepared to handle a crisis of epic proportions because it gives room for the economy to grow that can be obtained in a free market yet when disaster hits, providing a safety net. In times of disaster, the government can step in and help provide and coordinate housing, repairs, and dispensing of goods supplied. The

Free market can meet demands by producing supplies and in return help the economy grow and help to stabilize it..

Socialist Systems in Natural Disaster

In a...