Traditional economy

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Traditional economy is a catching-all term normally used to describe economic systems that pertain in societies with extensive subsistence agriculture. The term may also be used for any economy that falls outside of popular notions of market and command economies. The term tends to be used by industrialized societies to describe societies deemed "underdeveloped," and often appears alongside such controversial and disparaging terms as "primitive."^[1] For this reason, and because the term is vague and unspecific, the term sees little use among scholars in the fields of economics or anthropology, predominating instead in popular discourse.

Attempts to give the term a more specific meaning present the "traditional economy" as an economy based on custom and tradition/command. The decisions are based on tradition of the community or family. An example of a traditional society would be that of the Inuit.

This type of economy ensures that every member of society has a purpose and as well, a participatory function in society. In other words, each person has a certain activity or job.

This brand of economics also provides less of a demand on the resources of the earth because goods are usually only produced if they will be consumed, hence, there is a lack of over consumption and surplus such as can be found in many other economic systems.

1. ^ http://www.investorwords.com/6709/traditional_economy.html