Traditional Economy

Traditional Economies

     
Traditional economy, an economy based on its name, tradition. This economy does business the way it has always been done, whether its through rituals, customs, or beliefs. As you can maybe assume, the countries (or areas) that have traditional economies are not profit motivated like the Americans, instead they are more about protecting their culture. These economies do not use money, instead they use bartering and trading techniques for products and services. Click on the following link to view more about what a traditional economy is and how and why these economies are created.
https://www.thebalance.com/traditional-economy-definition-examples-pros-cons-3305587

Traditional economies decide to make products for the people and civilians they have always sold to (which is usually those with power). Whoever offers the seller is who will get the product. Yes, it's that simple. However, since these economies live nomadic lifestyles, there is not a consistent way they barter. They live day-to-day. Like I said before, they are hunters and gathers and often migrate with animals, so mainly what they sell is here and there food and resources. They have bargained the same things the way they have always. Again, they are nomadic, so how they get and make certain products is the way they always have. The civilians all eat and consume the same food and resources, so they seldom trade. These economies are not extremely concerned on being efficient in producing goods, however, they are efficient when they are in need of food and water because that is mainly what they trade. It is a common sense for civilians under this society to consistently produce one item, whether it is providing fishing gear or hunting gear. These societies tend to be very stable and reliable because everyone knows what they need to provide, so one person is not doing it all. These resources are produced and distributed among bartering stations for the civilians and leaders to trade and receive. Traditional economies do not really care for growing, just surviving. Everyone in this society has a role, so everyone is capable of staying productive with their jobs.

There is no private ownership among traditional economies, meaning individuals in this economy control their own farms or whatever their role is with little government input. Nobody really has profit motive because there is not technically one currency because everyone just trades their own items. Consumer sovereignty actually plays a bigger role than you think because whatever an individual desires or needs, they find whoever produces it, and then barters for it. There is minimal competition because it tends to be that one person produces a certain product, so there is no crossovers. There is no government intervention because they are nomadic. The problems with this system is that there is no profit motive. Everybody makes one specific product, and if there is no currency, there is no reason for them to work hard and produce abundant of that product. This economy has no plans to grow and adapt to the global change. Click here to view a complete list of pros and cons:     https://flowpsychology.com/11-pros-and-cons-of-a-traditional-economy/