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Economic System Suited for Handling Natural Disasters

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Economic System suited for handling natural disasters. When trying to determine which economic system would be best suited for handling a crisis of epic proportions such as a hurricane, blizzard, flood; and forest fire. One must first seek to understand the difference between the economic systems. One must also have a complete understanding of each systems strengths and weakness that may be prevalent in the circumstance that would surround such a crisis. It is my understanding that a free market system promotes the production and sales of goods and services with little to no help from any government agency. It allows for the supply and demand of its services to dictate its prices. So with lack of government control and government enforced pricing it allows for a vast range of freedoms, but as with anything it also has its drawbacks. In a market system they have the freedom to create products and services they feel consumers want. They are not relying on the government agency telling them when the public needs a new product. It is then in the hands of the consumer to decide if the product or service will survive. Now we add in market failures, failures such as the great depression in the 1930’s and the real estate crash in 2008 these all stemmed from highly leveraged assets and little government intervention and those seeking short term, quick profits over slow gains over time aided by loose credit. In a free market they are also largely motivated by profit. It is my opinion that the economic system that would be best suited to handle a crisis of epic proportions such as a hurricane, flood, blizzard or forest fire would be a planned system. I believe this because a planned system has government involvement which allows for quick movement to deal with the effects from a major disaster. They have the power to simply order resources to affected areas and do not have

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