Free Essay

Soclialism and Natural Disasters

In: Business and Management

Submitted By carrieannebohn
Words 717
Pages 3
Socialist System in and Natural Disaster Situation
Kimberly Bennett
DeVry University: Intro to Business and Tech 60715

The essay will be discussing why the socialist system is the best economic system to respond in the event of a natural disaster. Natural disasters with epic proportions such as hurricane, flood, blizzard, forest fire, etc. it will explain how it is the best system to assist with individuals after the disaster and how to deal with the aftermath of the crisis. Finally it will explain how the laws of supply and demand increase the cost to heat our homes and businesses in the winter.
Socialism is an economic system that is better described as social ownership. It is based on organizational use, which mean the good and services produce are used to directly “satisfy” the economic demand. This is what makes it a good system for the public, they directly deal with goods and services that humans consume and use.
An economic system in which the production and distribution of goods are controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity. (Harper, 2010). There are a numerous amounts of socialism some tolerate capitalism as long as they follow the same guidelines. All communists are socials but not necessarily all socialists are communists. The capitalist party that runs the United States can’t even deal with two feet of snow in New York City. Billionaire Mayor Michael Bloomberg was useless in the aftermath of the Dec. 26 snowstorm (Millies, 2011)
China which is run completely on a socialist economic system in times of a crisis showed that they are extremely effective when dealing with an earthquake that registered 8.0 in their Sichuan Province. Many thousands of homes were lost but it was stated that within 3 years many people’s lives were returned to normal. Its stated that this success happened due to they mobilized the entire country to help the crisis area, pulling the whole country together to help things get done faster, easier, and more successful.
When a natural disaster happens emergency crews are the ones to respond to help the “community”. The socialist economic system is what pays the emergency responders and therefore is another reason why it is considered a better economic system for natural disasters. The socialist system is the best system in time of emergency and disaster, it is quoted as “teaching people how to share things with your neighbor and to help out in time of need.” The Capitalism economic system is definded as, an economic system in which investments in the ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth. (Dictionary.com, n.d.)
Supply and demand is defined as “quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls.” There are 4 ways to describe the supply and demand “curve”. First is that if the demand increases and the supply does not change there becomes a shortage and it then increases the price of the product. More people are demanding less product. Second scenario is if the demand decreases, and the supply isn’t changed at all, there becomes an overage leading to a lower price. A less amount of people are requesting the same amount of product. Third is if the demand is unchanged and the supply increases there will be an overage leading to a lower price. Same amount of people with increased product leading to a lower price. The last scenario is if the demand remains unchanged and the supply is decreased there is a shortage of product and it will lead to a higher price. Unchanged demand, less product leads to a higher price. The laws of supply and demand, in the winter when people are using more power and more resources to keep their houses and businesses warm, the companies will raise the prices to offset the increase in usage.

Works Cited
Dictionary.com. (n.d.).
Harper, D. (2010). Dictionary.com. Retrieved from http://dictionary.reference.com/browse/socialism
Millies, S. (2011, January 8). Workers World.

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