By James Pattee, 01/21/15, 6th Period
Description of a Traditional Economy:
Goods are produced by hunting, fishing, gathering, and farming. In a traditional economy everyone owns and uses the land together. It is usually guided by traditions and customs rather than actual laws. There might be laws involved but mostly they are by common sense (no killing, stealing). During transactions they might barter or trade instead of using money.
Disadvantages of Traditional Economies:
Since traditional economies are based on customs they might have a resistance to change, which is one of their disadvantages as a society. Another disadvantage is that they don't go out of their tribe or area to go out and see the world. This resistance to change the very way they live is what cuts them off from society and the real world. One of the biggest disadvantages with a traditional economy is that pollution can affect their food resources. Because if there is too much pollution in their area they will not be able to have clean streams and rivers. The last disadvantage is that they have to change with the weather, this can be very hard since without the proper steps to prepare for this change they could loose a lot of valuable resources.
Just to recap:
Stays In One Area:
Weather Changes (Climate):
Advantages Of Traditional Economies:
In a Traditional Economy resources are shared among the group. So this is an advantage because there is enough resources for everyone to share. This helps a group come together as a tribe so that all of the work gets done in the community. Everyone knows their role and what their job is in the economy. Another advantage is that Traditional Economies are more sustainable because they pollute less than other economies. The last advantage of Traditional Economies is that they don't have a lot of expenses that they have to worry about and they aren't in a big national debt like our government is in right now. All of the people in the economy usually don't have to pay money to buy goods because they just trade all of their goods for other goods that they want.
Just To Recap:
Shared Resources Among A Group:
Everyone Knows Their Job:
They Pollute Less:
Don't Have Big Debt Or Expenses:
Examples Of Traditional Economies:
How they address the three essential questions:
What will be produced?
Mostly in a Traditional Economy will produce crops and food that will be distributed throughout the tribe or group. In this economy it is easier to produce the resources because everyone has a job and there are no free riders.
How will it be produced?
Everyone pitches in to get the food and the resources they need to survive. The rule is that if they do not work they will not get food and the resources they need to live. As long as everyone works everything is fine.
Who will it be produced for?
It will be produced for the whole tribe or group that participate in the economy. Everyone benefits from the rewards of the work done.