We have all seen the devastation a country endears when it is hit by a natural disaster, such as a hurricane, forest fire or even earthquakes. And when their lives are disrupted by disasters people will look to their government for assistance. It is the country’s economic system that often determines to what degree the government can provide its citizens with the needed goods and services following a natural disaster. To wonder which economic system is best suited for handling a crisis, we need to take a deeper look and see how these systems operate. First, let’s look at a Mixed Economy. In this type of system the government’s role is to help the economy prosper while at the same time protect its consumers. This protection often comes the form of financial assistance, however business are allowed, in fact they are encouraged to make a profit, even in the face of a disaster. This ensures an adequate supply of essential goods and services while preserving the profit motive.

Then there is Free-Market Economy. In a free-market economic system, prices distribute resources in an efficient manner according to the law of supply and demand. In the event of a natural disaster, prices of water, food and shelter rise to accommodate the increased demand for those items. Individuals who can afford the higher prices buy the goods and services provided, unfortunately there are many people who may not be able to afford them, thus suffering for lack of goods and services they normally would have been able to afford in normal times. Now there is the communist, economic system where the government decides how much is produced, what products are produced and how products are distributed. This can make it difficult for a communist economic system to adapt to a natural disaster because the need for various products cannot be predicted