Economics Commentary - article on the Haitian Earthquake Essay Example for Free

Economics Commentary article on the Haitian Earthquake EssayIN JANUARY last year, the quake causes the 2004 Asian tsunami, which eradicate 250,000 quite a little and 300,000 injured. People were living under sheeting strung across wooden poles. There were too many vulnerable homeless people that aid authority cant fit them in tens. People are trapped in supermarkets, debris and so on. I feel really sorry for them and I swear casualtys family can be rest in peace.First of all, there will be a change in Haitis economy because theres a huge military group of Haitis production. Haiti lost 250,000 people and 300,000 people were injured. They lost loads of labor and enterprise just because of this. Labor are merciful resources providing power to make goods and services enterprise is a firm is an owner of a factory or company e.g. Nike, Apple.Capitals such as Houses, hospitals and factories were destroyed. Capital is man made resources that use for production. Many animals got kill by this earthquake and tsunami and destroyed timbers theres loss of land. Land is inhering resources that cant add by human. Clearly, Haitis production is decreasing. In this case, we can use a PPF to inform the situation. PPF is a curve that shows the combinations of 2 or more goods that can be adoptd using all available resources. Heres the PPF of Haiti before tsunami.PFF1 is Haitis PPF before tsunami and PPF2 is Haitis PPF after tsunamiThe PPF slip of paper to the left hand means theres decrease at both actual and potential output. Actual output is what the country is currently producing and potential output is the maximum outputs you can produce will all currently resource. Because Haiti lost a lot of capitals, land, labor and enterprise, its production is running down. Therefore, its PPF shifts inward.Theres also economic rectify and economic deterioration. Economic decline is the percent decrease in real GDP per annum and economic deterioration is decrease in living standard for every maven in the country. There is a shift of PPF because of the environment factors (earthquake and tsunami).There was a change of Haiti peoples require because of the tsunami and earthquake. Demand is amount of a good or service that consumer are will and able to profane at a given price over a period a time. Whats the change of Haiti peoples lease? Tsunami and earthquake destroyed a lot things, one of them is food. Haiti people are in starvation, theres no more flesh food for them so their demand of canned food rose. It is because inferior goods demand if rise when theres war, natural disaster. Inferior good is a good that can replace another good as a substitute.The demand of Haiti peoples canned foodThis is a demand curve shows people in Haitis demand of canned food rise fromD1 to D2. Because the demand determinate is not price of the good of itself, its environment, theres a shift of demand curve to the right. Demand determinants are factors that can affect the demand such as price, consumer income, and low populationsEvolutionHaitis earthquake and tsunami are lost and a agony we would never wanted to happen and they took millions of peoples life away and destroyed thousands homes. Here are few solutions I think it might help to raise anchor the economy of Haiti. First of all is asking UN for help. The United Nations (UN) is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace. United nation will usually provided aid and food for refugees. Second is building hospitals and factories. Recovering labor and capital is an important pervert to get the economy back on track. Education is more important in Haiti than other countries. They need new blood to contribute for the society and thats where training is needed. Good people equal good country.