Traditional Economy Advantages and Disadvantages
Traditional economy is a type of economy wherein customs and even beliefs of the people in every generation is highly emphasized. This is an economic system wherein all the resources are effectively and completely allocated based on its inheritance. This greatly differs from the modern economy that is currently experienced today by the people.
This is an economic system is a very constant and comprehensive and greatly improves the likely hood of a highly developed economy that is rich in culture, beliefs, and traditions. This traditional economy has its own advantages and disadvantages that people in order for the people to know its big difference from other types of economic systems all over the world.
Advantages of Traditional Economy
Production of goods for people’s survival
Traditional economy is more about producing goods. This economic system supplies sufficient amount of foods to the people. It greatly reduces the amount of surplus or waste that typically would have occurred.
Knowing People’s Role
In this particular economy, people can already recognize what their role in the society or community is. They need not to exert effort on a role which is not suitable for their skills and abilities thus no duplication of role or effort is evident on it.
Since traditional economy is more on the culture and belief of the people, it will always sustain an environment friendly surrounding that aims to give the people their needs effectively and accordingly without affecting the nature of the environment.
Harmony Among The People
Traditional economy promotes cooperation and harmonious relationship. It provides people with equal chances to practiced working with other people harmoniously and with complete cooperation.
Disadvantages of Traditional Economy
It is a vulnerable type of economy
Traditional economy is more prone to vulnerability due to the continuous changes in the weather condition. This greatly affects the supply of the foods and services to the people. When this economy continues to become vulnerable, there would be a greater possibility of vulnerability not only on the foods and its services but also in its customs, beliefs and traditions.
Capability to change
Since traditional economy is greatly based on customs and other society’s beliefs, there would be a greater chance for this economy to change as these aspects also changes. All the aspects that were just taught by some of their ancestors would be the only important things that people would be using and they will no longer adopt new aspects in the society for their improvements.
Lower standards of wealth and living of the people
People in the traditional economy are not highly specialized in living a wealthy life. Low standards that they are practicing can be seen when people are being asked to have a job which they do not like and beyond their skill and capabilities. This is because they are only relying on their ancestor’s custom and tradition.
Traditional economy is very systematic in providing immense foods and even services to the people. Although more people are really more of getting involved with the modern type of economy, knowing some of the advantages and disadvantages of this traditional economy would is still important.