What are the advantages and disadvantages of a traditional economy.
A traditional economy is defined as an economic system where customs, traditions, and beliefs help to shape the culture and the products and services that are offered.Rules that are used for the distribution of goods and services are based on traditions and beliefs.
Most countries that follow a traditional economy design are rural, feature agricultural products, and exchange goods and services through barter or trade rather than financial transactions.They are seen as primitive and part of the developing world.The tea plantations found in Southern India disprove this stigmatization.
The pros and cons of a traditional economy are compared to other economy formats employed by governments around the world today.
Each new generation is given the skills to produce goods or services because traditional economies tend to be rural.The skills and traditions gained by the elders within each family group become the expressions of how the economy operates in the future.The economy is centered around meeting the needs of one another and that process helps keep family units together.
The traditional economy is based on where you must go to get the resources you need to survive.Traditional economies are nomadic because they allow each family group to follow migration or seasonal patterns of food growth.Groups that are following the concepts of a traditional economy don't need to trade with the outside world because they are able to produce everything they need on their own.
The traditional economy doesn't create any waste when developing goods or services.This economy type has a rare surplus.Most traditional economies produce what they need.There is no value to this type of economy in trading with someone else.There is no need to continue production once needs are met.
There is rarely a need for currency in traditional economies.The goal of bartering is to get items that are required for survival.One group of farmers might be good.Another group might be good hunters.Both groups can serve their individual needs better if they trade corn for venison.
A surplus will develop through improved growing methods once a traditional economy settles into a routine of farming.The economy will barter the surplus with other groups.The traditional economy will develop some type of currency if there is enough surplus.Currency allows long-distance trades to relieve the pressures of surplus products.
The groups in a traditional economy are family-based.Everyone is following the traditions and customs set forth by the elder.Each person knows what is expected of them in the economy.No matter what the role of the individual is, production levels will remain stable.It is possible for all basic needs to be met because members know what they will receive for their work.
Traditional economies do not operate on a mass scale.These economies are small.Some involve only one tribe or household.They are less destructive to the environment because they don't sacrifice the needs of members.Although they may have limited production capabilities, the outcomes of these economies are predictable, which makes planning for future needs easier compared to other economy types.
Before the colonization of North America, there was no need for nomadic population groups to worry about a disease like smallpox.Small communities are less likely to be affected by infectious diseases and other health issues.Each traditional economy tends to form its own natural defenses, which leads to stronger immune systems and a better quality of life.
There are limited opportunities for job changes within a traditional economy, but there is less job dissatisfaction found in this type of economy.In a traditional economy, people are matched to jobs that use their natural talents and skills the best.It is easier for people to take pride in their work since they are good at it.With the support of a family or tribe each day, work becomes part of life in the traditional economy instead of being defined by a job.
Competition levels for available resources can be high because traditional economies focus on meeting internal needs.Groups that are close to one another may find themselves fighting for limited natural resources.Competition can take on many forms, including war, which may limit the availability of resources to affected groups.
The size and scope of success that a traditional economy receives is determined by the weather.A bad growing season can stop farming.It may be difficult for those in the traditional economy to find a new location if the migratory herds avoid an area because of bad weather.Families within this economy type tend to limit their population growth because of the negative impacts of weather.
Farmers, hunters, and gatherers provide food for the entire population in the traditional economy.There is a good chance that the people living within that economy will starve if there isn't enough food to go around.There is a limited amount of food storage available.When grown or gathered, what is needed is used immediately.Because bartering is a common practice, there is no way to get needed goods.
Command economies or market economies consume the natural resources that the traditional economy uses to support themselves.The other economy types are usually more advanced technologically, so they can decide to come in and take what they need or want to meet their own needs.The environment was damaged when Russia moved into the Siberia region because of their quest for crude oil.
Europeans brought diseases to the Americas that devastated family groups.The immune systems of the traditional economies struggled to adapt to the disease because they had never been exposed to it.Many traditional economies were at risk of extinction because of Poaching and warfare.The weapons and tools the other economy types brought to them started being used by those who could adapt.Traditional economies can't compete with the technological advantages other types offer.
Each person knows what their role will be in the production cycle.It becomes their responsibility.If someone dies or becomes disabled, they can't move into a new responsibility.There are few options for someone who wants to try something new.Many people in a traditional economy work the same job for most of their lives.
Traditional economies harm the environment instead of helping it.Poor growing practices forced farms in Kansas, Oklahoma, and Northern Texas to close.The land was no longer usable.Haiti's forests are in decline because wood is being used as a fuel.Traditional economy growth is being promoted by the destruction of the rainforests in South America.The production of a traditional economy will eventually fail if it is not reflective of the environment.
There is a lack of access to modern medical care that leads to high infant mortality rates in traditional economies.The most vulnerable population demographic in this economy type is children under the age of 5.It takes one poor season to reduce food access.From a young age, many children contribute to household production as a means of self-survival, which is not always the healthiest way to live.