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What are the advantages and disadvantages of a traditional economy?

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Quick Answer

Some of the advantages of a traditional economy include a stable marketplace and the preservation of culture and customs, but limiting the power of individual choice and minimal societal progress are clear disadvantages. Various cultures throughout the world maintain a traditional economy for generation after generation to sustain the society. A country’s refusal to adapt to modern ways of living impedes transformational progress for every citizen.

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What are the advantages and disadvantages of a traditional economy?
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Full Answer

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.

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