Business as Usual!
Professor: Ivan Briceno
Business as Usual!
A natural disaster strikes in the richest country on the planet! A government’s response to a crisis is contingent on its economic system! A senior citizen wonders if they should turn the heater on in the middle of winter! What do all these events have in common? They all have to do with Business. As everyone goes on with their daily activities, many are unaware that business is a part of their everyday life. From something as simple as being comfortable on a cold evening, to the efficiency of emergency response to a disaster, business is involved in one way or another. Therefore, from a business standpoint, we’ll examine the following; which economic system is best suited for handling a major crisis, such as a natural disaster; why a socialist system might be the best in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January 2010; lastly, we’ll use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter time.
There are many disasters, natural or man-made, that can disrupt the lives of a country’s citizens. The type of economic system utilized by a country can be a significant factor in how its government responds to a major crisis. When it comes to which economic system is best in responding to a crisis, a mixed economy takes the lead for the following reasons; the government’s role is to assist in the economy’s prosperity, as well as protecting consumers; financial assistance is provided to consumers, and businesses are allowed and encouraged to profit from natural disasters, which, by doing so, supplies and services can be adequately provided while maintaining the incentive of profit. According to Matthew Lutmer-Paulson, a junior college adjunct government instructor, states “Mixed economy is the economic...
References: Nickels, McHugh, & McHugh, (2010). Understanding Business. New York, NY:McGraw-Hill
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