7 Predominant Advantages and Disadvantages of a Traditional Economy
A traditional economy is one that is fueled by the local agriculture of the area that it is in. It is one of the oldest types of economies, that is supported by trade of goods and services, and is typically completely self sustaining. Developing regions in poor countries are where they are most commonly found, because of this, many critics believe that it is an outdated type of market that results in high poverty and a low quality of life. However, the people that are in traditional economies believe that it is a preservation of culture as well as the precious land and resources that are wasted in other forms of economies. Let’s take a good look at the pros and cons that traditional economies have to offer.
The Advantages of a Traditional Economy
1. All Needs Are Met
The lifestyle of people living in these economies is not luxurious by any means, however it does work well. The communities come together and each person has a purpose that they serve. All of the vital needs and necessities of life and met, resulting in a much simpler way of living.
2. Isn’t Destructive To The Environment
Big fancy buildings aren’t needed for a traditional economy to work. This helps to preserve the natural land that is surrounding these regions. Trees do not need to be cut down, factories that pollute the air do not need to be built because the goods do not need packaging. All of these things result in a healthier environment.
3. The Community Works Together
Everyone plays an equally important role in traditional economies. One person may be in charge of creating clothing and accessories, another certain fruits of vegetables. Everyone works together to keep the economy running smoothly.
4. For Survival, Not Profit
When you take the element of profits and greed out of an economy, people work together instead of compete against each other. Trade is the primary way that people obtain the things they need to live. This almost eliminates the need for money, and creates a much more peaceful environment.
The Disadvantages of a Traditional Economy
1. It’s Difficult To Change
One of the biggest drawbacks of a traditional economy is their capacity to grow and develop. Since people are simply trading for the things they need, they do not aspire to have more than that. These regions are often riddled with poverty and other problems that developing countries encounter, and cannot escape these issues with a traditional economy.
2. Lower Standard Of Life
While the basic necessities are met, people rarely live outside of “survival mode” in traditional economies. There is much more to life than simply surviving, and critics believe that it is wrong to keep an entire area stunted from the development that the rest of the world is enjoying.
3. Many Factors Can Effect The Economy
Traditional economies depend greatly on outside factors that people have no control over. Things such as the climate can have devastating consequences on the well being of the entire economy. Health factors also come into play. If a person is sick or unable to perform their duty, then the entire area goes without a possibly vital product.