Business in Action

Week 1: Business in Action

Carlos J. Gomez

Devry University

Week 1: Business in Action

The economic system that is best suited for handling crisis of epic proportions is socialism. Socialism is the "economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries."

Due to the high involvement in government planning and ownership of capital resources, I feel socialism is the safest economic system for handling a crisis. A socialist government controls industries that play a major role in common welfare. Transportation, healthcare and communications are the focuses of socialist government ownership. If a natural disaster were to occur, the government will be able to regulate costs and expenses to benefit economic regrowth. This type of economic system could be very beneficial by allowing companies to continue to provide goods and service while controlling the industries that control the primary functionality of the economy.

A socialist system might be the best at responding to the needs of people struck by an emergency situation because of its control over the major industries that are important to the well-being of society.

A socialist system would have been more beneficial in an emergency situation like the earthquake that occurred in Haiti. Haiti is a capitalist society which means there was no government control over the industries that would have assisted in a fast recovery such as Medical and Transportation. If Haiti followed socialism, the assistance from other countries would have been more beneficial because government control would allow for even distribution of all goods and medical services. Due to the lack in government control, Haiti’s economy suffered for a longer length of time.

The laws of supply and demand can explain why the cost to heat our homes and businesses goes up in the winter time.

Supply and demand is the regulation of pricing based on...