When a natural disaster occurs the economy can suffer great devastation when it comes to the amount of clean up, deaths, and health problems that come as an aftermath. When dealing with such crisis of an epic proportion for example a hurricane, flood, blizzard, and or forest fire, the economic system that should be chose is critical. The economic system that should be chosen would be a socialism system, “An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.”( (Nickels, McHugh & McHugh, 2010)) Socialism system would be the best choice because; the need to help the people that were greatly affected from the natural disaster can be met at a high proportion. In a socialist economy the government holds the power to quickly respond to the crisis, because the main idea of a socialism economic system is for the government to be involved in protecting the environment and providing for the poor, which is what is needed when a natural disaster occurs.
The earthquake that occurred in Haiti in January 2010 is a prime example of a devastating disaster that occurred, in which the socialism economic system would be the best fit choice. This is because the need for a particular business can be widely focused on, and implemented by the government. Social equality is the idea of an socialism economic system, through higher taxes of the wealthy, giving in return to the poor. Therefore the aftermath of the earthquake, left need for placement of many families, in the form of shelter, financial rebuilding, and in health factors. The cause and effects of the socialism system helps in this case. Meaning, because the wealthy are taxed abundantly the poor being the people affected by the earthquake can receive, financial help, shelter, as well as health care.
Looking further into economic systems and practices, another particular practice is capitalism and free...