Advantages of a traditional economy include knowing people's role in the economy and producing goods to help people survive; disadvantages include a lower standard of living and an increased vulnerability of all concerned. A traditional economy is one that emphasizes the beliefs and customs of each generation of people.Continue Reading
Generally, a traditional economy is very stable and constant. In today's society, a traditional economy is still used in developing countries such as Asia, Africa, the Middle East and South America. People living in these areas don't decide how they will make or spend their money. Their jobs are handed down from parents and grandparents and people only purchase what they need to survive.
A country’s economic system drives the way that goods and services are created and distributed within its borders, and traditional economies are notably common in poorly developed lands. People who work and live in a traditional economy have specific roles that they fulfill in the community, and every member is expected to do their job without dissent. Most people who live in a traditional economy are forced to work in the same industry as their forefathers, and individuals rarely explore other employment possibilities without scorn and consequence.
Each family is expected to follow a certain set of rules and regulations dictated to them from their relatives, and they perform their duty for the good of the society. Gluttony and selfishness is not acceptable in a traditional economy, and a family is always expected to divide their stock with the community. Bartering for goods is also acceptable. However, distributing goods and services evenly among citizens in traditional economies allows many underdeveloped cities to continue to survive for thousands of years on limited resources.Learn more about Economics