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Basic Economics.Which economic system is best suited for handling a crisis of epic proportions? Essay

Basic Economics


Which economic system is best suited for handling a crisis of epic proportions?

             In the incidence of hazards, disasters, threats  as well as handling crisis’s of epic proportions  such as hurricanes, fires, blizzards and floods among others, employment of the Socialist system helps managements at all levels handle and manage such incidences . The system is systematic, proactive and guides departments at all levels of the government administration, NGOs, as well as the private sector to work as a team and handle such crisis regardless of the size, the intricacy, the source and the location (Kornai & Oxford University Press, 1992). Additionally, it provides a combination of assistance from different sectors.  In this case, the system helps reduce and sometimes prevent loss of life, the loss of property and environmental destructions from incidences of any level. Essentially, it provides a common approach in managing incidences. In this case, the socialism system plays a major role in offering solutions as the government pays everyone who works within the environments. As most disasters are local, the immediate community, the groups within the locality and the individuals within act as the first responders to a calamity hence application of the socialist system serves the best. This motivates individuals to assist and help the people in need. Most importantly, the socialist system is the most effective system in managing crisis as it teaches people within the society the importance of living together, sharing belongings and helping each other during the times of need.

Why a socialist system might be the best in responding to the needs of people struck by an emergency like the earthquake that occurred in Haiti in January 2010?

Socialist societies provide immediate solutions to offer urgent and controlled solutions to emergencies and more so disasters of epic proportions as the one suffered in Haiti in 2010. This is because the system has the ability to call for help on a larger scale since it strategizes on the mix of public, private and government owned operations(Marangos & Palgrave Connect (Online service), 2013).  The incidence of the earthquake that occurred in Haiti was so catastrophic such that it led to collapse of buildings that caused the deaths of thousands of people and left many injured without food and basic commodities(Marangos & Palgrave Connect (Online service), 2013) . Although the US government and the UN provided basic support and help in rescue and provision of basic commodities, the socialist system could have worked better. Socialist communities use the system to ensure a common base for the good of the nation and human needs and provide a common approach in providing a solution. The system enlightens the public to take the necessary measures as well as avoiding waiting the government to bring a solution by recognizing that each person has a role to play. It works well because it basis its endeavors in immediate regrouping and reorganization of efforts.

Why it costs more to heat our homes in the winter?

            In the laws of supply and demand, when the demand of products goes up, the price of the products typically goes up. In the event of the augmented costs of heating up our homes during the winter, the same law applies. For instance, since everyone in the market strives to purchase products for heating their homes, the demand shoots up hence the prices profoundly increase. Therefore, if demand increases and the supply remain unchanged, a shortage is established hence a higher equilibrium costs (Gottheil, 1998). In winter, the same applies as the energy supplies remains the same as the demand augments overwhelmingly an aspect that translates to elevated bills for customers. For instance, change in weather conditions serves as the major factor as to why clients pay more in terms of energy used during the winter.


Marangos, J., & Palgrave Connect (Online service). (2013). Consistency and viability of socialist   economic systems. New York NY: Palgrave Macmillan.

Gottheil, F. M. (1998). Principles of economics. South-Western college publishing.

Kornai, J., & Oxford University Press. (1992). The Socialist system: The political economy of       communism. Oxford: Clarendon Press.

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