Business:
The government is expected to respond and come to the aid of the people in case any disaster strikes. This is usually done depending on the economic system that the country has adopted. When disasters strike regardless of the magnitude, the first people to respond are the emergency services. Depending on the intensity of the disaster the country makes the decision on whether or not to engage the help of other countries. The most preferred economic system that is most suitable for handling different crisis with regard to their epic proportion is the mixed economic system (Powell, 2007).
Mixed economic system is preferred since the economic prosperity of the country is upheld alongside the consumer protection. In this economic system, it also occurs that the various businesses are allowed to make profit even when the country is facing disasters. The mixed type of economy advocates for the adequate supply of goods and services to the victims factoring in their profit margins. A mixed economic system is preferred while addressing disasters of epic magnitude since it is flexible and accurately enough. In these system, the private sector and the government is in control of the system. It reflects the traits of both the capitalist and the socialist economic systems (Powell, 2007). In these system, the private sector has a great economic freedom where the services will be lender especially in situations where disaster of epic magnitude have taken places since they can operate without much restrictions. This kind of freedom will enable the system to be the most effective since the private sector benefits while responding to the disasters.
Why a socialist system might be the best in responding to the needs of people struck by an emergency situation
Socialist system is the best system when it comes to responding to emergencies of epic proportions that occur in different parts of the world. Over the time, countries that practise the socialist system of governance are on record for being well prepared and responding to natural disasters in the most effective way (Orr, 2012). In socialist states where natural disasters of epic magnitude have occurred such as Cuba where hurricane occurred, preparations on the ground were adequate such that the lives of the citizen were well taken care for. In addition to that, after the disaster struck the country handle the situation adequately and first.
Rebuilding started almost immediately that they managed to stabilise quickly as compared to what is exhibited in countries struck by disaster of equal intensity but with different system. For instance, the United States of America where the system practised is capitalism. In several occasions they have responded poorly to disasters such as hurricane Katrina having been severally warned by experts. Their responses can be best described as an international joke. China which is also a socialist country is known to respond to earthquake which occurred in their country frequently in an efficient way and the number of deaths is minimal. A social democratic state for example Australia handle bush fire and flood fairly well too (Orr, 2012).
A socialist system is the only system that put the welfare and the interests of its people before other things. This occurs as such because the people’s government is responsible of footing the costs that are incurred in preparing for disasters. When the disaster occurs, the government responds swiftly to save its people unlike what have been witnessed in other countries where different system such as capitalism is used. It makes sense since they put priority on things that matters most to them.
Explain why the cost to heat our homes and businesses goes up in the winter time
Like other commodities the cost of fuel which is used to heat homes during winter is determined using the laws of supply and demand. History has it that the prices of fuel rises especially during winters as many people use natural gas to warm their houses. This is because the demands for the fuel for heating the houses are high (Arnold, 2011). Therefore, as the weather patterns changes the prices of the fuel is directly impacted. The prices are pushed up high during the extreme cold winter season while during the summer time the prices will go down.
The law of demand and supply has it that increase in demand increases the price of good and a decrease in demand reduces the prices of goods and services. The rationale behind this law is that when the demand for the goods is high and the supply is constant, it occurs that a shortage arises and therefore the price of the goods and services rises. In this situation people are forced to pay more for the goods and services to acquire them (Boyes & Melvin, 2012). On the other hand when the supply exceeds demand then the buyer will buy from the suppliers who sell at a low price. The prices of the goods and services are forced to shoot down so that the products find a buyer. This is the case during the winter season and the prices of fuel.
References
Arnold, R. A. (2011). Microeconomics 10e. Mason, OH: South-Western Cengage Learning.
Boyes, W. J., & Melvin, M. (2012). Microeconomics. Mason, OH: South-Western Cengage Learning.
Orr, T. (2012). Understanding economic systems. New York: Rosen Pub.
Powell, M. A. (2007). Understanding the mixed economy of welfare. Bristol [u.a.: Policy Press
