Essay on Intro to Business

1079 Words Aug 11th, 2012 5 Pages
No one can predict a natural disaster or world crisis. When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first? Which economic system is the best solution for handling a crisis of epic proportion?
When a natural disaster occurs the local people are typically the first to respond. This could be local citizens, fire departments, police, or anyone who is in the immediate area and also the local government. 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
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A mixed economy would have more financial resources to expend because of the higher taxation on items for defense and the common welfare.

What advantages might a socialist system have in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January of 2010?
A socialist system would have a few advantages that would not be available to other systems as a result of their complete control of the country. A perfect example would be in the handling of food and other supplies in the aftermath of the catastrophe. Nickels et al. (2010) shows that in a socialist country the ownership of the major businesses is done by the people. Since the people control the major businesses, they also control the items that they produce. A socialist economy promotes equality and they have higher taxes. This enables a socialist system to have the resources that will be needed in the aftermath of a crisis. The system would control the products and the capital needed to provide humanitarian aid, basic necessities, and the money to re-build. Nickels et al. (2010) shows that in a capitalist society, that would not be the case. Major corporations are controlled by the private sector and the taxes tend to be allocated for other things. In the current economy it would be extremely difficult to find additional funding without

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