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Econimics Systems

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The economic system that is best suited for handling a crises of epic proportion would be the socialism system. The reasoning for this is because our Government is part of the socialism system. Our government always plays a big role in disasters. They are the ones that are able to approve assistance and approve what king of funding families get. Whenever an epic crisis happens or strikes these people are ready and prepared for it. By using the socialism system there would be no red tape to go through because you will be dealing with the government and middle man. In this case wiping out the middle man and politics that a state may have to go through is eliminated. The state would already be dealing with the government and after analyzing the damage and estimating how much the state may need in funding they can go right to the source. The Government also has the ability to speak right with the President of the United States and he is able to declare it a state of federal disaster. When this decision is made it is then easier to know which funding to ask for.

In an emergency situation a socialist system would be the best to respond. The needs of the people will be met and everyone will get assistance no matter what. With help from the government the departments get the help that they need to take care of natural disasters. They are able to provide the services that are necessary. This system has quotas and this is a benefit to them. When the earthquake hit, it was able to give resources to help rebuild the country. With using this system everyone is treated equally. Non-profit organizations also play a big role in emergency situations. They can go in and provide medical treatment if necessary. They can give blood if needed to injured parties. These organizations can also provide food and water if the situation presents itself. I believe that sometimes the non-profits are a bigger help to natural disasters then our government. The Red Cross plays a very big part in natural disasters. This group collects blood and always has food and water donated to their organization. They also open up a way for you to donate to their cause when they are dealing with a natural disaster. These groups along with the government would be the two biggest impact when it comes to rebuilding a city, state or even a country when a natural disaster may hit. ¹ As a person that lives in the north we know all too well about the winter and the cost of heating your home in the winter. We are all human and as the cold weather hits we are unable to stand the below freezing weather. It is a proven fact that if you stay out to long in temperatures that are below zero it is very easy to get frost bitten and if for some un-foreseen situation occurs you could freeze. Therefore, when the temperature drops we tend to increase the temperature in our homes and in businesses. The demand for the electricity goes up because everyone needs to have their heat on. This in return makes the demand go up and the Electric companies what you to think that because the demand is increased there will be a shortage in supply. These types of companies know that the increase in demand will allow them to increase the price because they want you to think that there is a shortage in supply. I would then have to ask in the south where it is hot why do they not say anything about a shortage because the air conditioners are running to keep them cool. Up here in the north we are usually only running the furnaces in the winter because of the cold and the snow. Raising the prices allows the companies upper management to make more money and turn that money into making ways to get more supply and keep the prices at an average. It is known that the colder the winter the more it will cost an American citizen to heat their home or business. Some companies keep their temperatures in their business set at a certain temperature during winter so they can maintain a budget and know how much it will cost them to heat their establishments in the winter. This becomes more about the greed of upper management rather than thinking about how the end result is going to effect the consumer. ²

¹(2012, 08) intro to business.studymode.com
²(2012) dev.business.und.edu

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