Which Economic System Is The Best Solution To Handle A Crisis Of Epic Proportion?


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Jennifer Bone answered
There are a number of different theories about which economic system is best able to cope and recover in the event of a disaster.  Some would consider the free market system the most able because it involves the private sector owning most resources which leaves the government's main function as facilitating and aiding economic activity.  This particular division of responsibility is considered particularly strong in a disaster situation because the infrastructure of the economy would be severely disrupted meaning that, in this case, the government would be focussed on rebuilding and encouraging investment in the private sector. This focus would have positive effects. For example, the government would likely introduce ways of lending money such as grants and low interest loans which would help the private sector get on with their main concerns (a good and fair division of labour) whilst making them more efficient because their predominant motivation would be profit which, in this case, would greatly aid regeneration

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