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Economic Systems and Their Impacts

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Economy systems and their impact

It is possible to argue this in two ways. It is possible to say that a market economy would handle this situation best, but it is also possible to say that a command economy (the more socialist the better) would be more efficient. But local citizens, fire departments, police, or anyone who is in the immediate area and also the local government are the first to respond. They help to search for living people and try to rescue and aid as many victims as possible. National non-profit organizations like the Red Cross and other Non Government Organizations (NGO’s) are normally on the scene relatively quickly to try to ease the suffering and aid in the humanitarian causes of searching for survivors.
However, it is also possible to argue that a market economy is the best system for dealing with disaster. The argument here is that governments simply do not work efficiently, regardless of how much power they have. The various people in government do not have much of an incentive to work their hardest to make the recovery happen. By contrast, firms in a market economy would have a motive (the profit motive) to work quickly and efficiently. They would also tend to have the expertise needed to accomplish the task. This is, for example, why some people argue that large stores like Wal-Mart, Lowe’s, and Home Depot were better able to get supplies to places that were hit by Hurricane Sandy than the government was.
But I would rather go with Socialism in it's perfect form (which rarely ever happens) seems to be the best economic system because it teaches people how to share things with your neighbor and to help out on the time of need. When I say socialism in its perfect form I mean that government has total control and the socialist economy is in a idea state in the country because though socialist economy is best to respond during crisis but it is only when you have a perfect socialist economy and this is very rarely possible.
The best example for socialist economy as said on Federal emergency management agency Site is that,” in 2008 alone, Hurricanes Gustav, Ike and Paloma ravaged the Caribbean island. Gustav and Ike struck 10 days apart and did $5 billion worth of damage. Ike destroyed 840,000 acres of sugar cane fields. But because millions of Cubans were evacuated; just seven people were killed in the 2008 hurricanes.” Socialist societies are base in the good of the nation and the human needs of the people making them more efficient in regrouping and reorganizing their efforts. In these societies, each person has a role to play and they know what it is. There is no guess, no waiting for leadership, all but eliminating the flailing about of aimless masses unsure of what to do.
While socialist societies may be better prepared in practices and ideologies to assist in disaster situations, they rarely have access to the pure mass of resources that the capitalist societies provide when they are so moved to act. On an individual or global level, there are different ideals for people of this planet. Each of the differing societies has its strengths and weaknesses; the trick to a healthy peace is to work together playing to our strengths and minimizing our weaknesses.
Thus socialist economy is the best to handle the crisis as they have people working on the crisis and through some specific plan and thus success fast and efficiently in recovering from it.
Now talking about the supply and demand the more the supply in the market and less the demand the more cheaper the product is and vice the versa when the supply is more and demand is less the product price decreases. Now seeing it in detail if the supply is constant then the rate directly depend in increase and decrease in demand. Also if demand is constant then prices inversely depend on the supply of the product.
For example if there are 10 people in a store to buy chairs and only 8 chairs available in store then the value of chairs increases as the demand is more and product supply is less in this case, similarly if there are 12 chairs available in the store and 10 customers buying them as the demand is less this time and supply is more thus the value of chairs decreases.
Taking the example above in consideration we can easily understand that the cost of heating houses and business during winter thus increases as the demand of heating increases in winter and supply remains constant. Also as the demand of heating increases in winter the prices of heating also increases as the supply available is less and the demand in which it is required is far exceeded then the supply.

References:
Economic partisanship, DAVID VOLODZKO , August 2012.

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