Socialist Economic System

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Socialist Economic System The economic system that is best suited for handling a crisis of epic proportions is the socialist economic system, because the resources of the entire nation is available to be used in one effort. Andrew Walter describes socialism as, “The economic system under which the government owns and administrates the means of production and distribution of goods. Goods and wages are distributed unequally on the basis of the work performed. Socialism is viewed as being in-between capitalism and communism.” (Walter, 2014) When a government has total control of all the country’s resources, then in the event of a crisis the government would be able to act quickly without the need of relying on the charity of the citizens, as it happens often in capitalist societies. Walter describes capitalism as, “the economic system under which the ownership of goods and services are privately owned, and decisions concerning pricing, investments, and distribution are determined in a free-market system (a system that operates between businesses.)” (Walter, 2014) The problem with the charitable businesses that help people when a crisis occurs is that sometimes the resources necessary are not readily available, particularly in an area that is impoverished. The amount of aid and the distribution of resources given to poor people may be limited or slow to arrive without government support in a capitalist economy. The Best Economic System for Responding to Crisis 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 on January 12, 2010. The Haitian society operates with a democratic government and has a high level of poverty, uneducated people and a lack of economic progress. “Even before the catastrophic earthquake of January 12, 2010, Haiti was not responding to the
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