Traditional Economy by Alexander Noriega
Traditional Economy, What is It?
Pictured Above Man In the Dawn
Here we have Homo Habilis, he was the first hominid to craft tools; truly the kind of man Roosevalt can respect. He also invented the traditional economy. Unlike his ancestor Australopithecus Africanis, production of goods and means of production where factors of survival. Certain tools, the ancient man's capital, allowed more food. He understood the basis of economy, investment. He did not do it for profit, produced no more than he and his family could eat, unless trade was immediate. Food for a rock, rock for a some food, was understood by Habilis closest relative Homo Ergaster. These two early men invented economics, and the early traditional economy
Pictured Below Man in the Midday
Despite the increasing advantages in tool making by Homo Erectus, the advances in society by Homo Neanderthals, or the Cro-Magnums superior intelligence none of them made a true advances in economics. Only a rough 10,000 years ago, Homo Sapiens revolution the economy with a world shattering now idea, animal domestication. Now the plurality of goods needed to perform traditional economics came to be. Property, in the form of beasts rather than land, meant growth, accumulation of wealth, and in extreme cases division of labor. Substance was the goal, but wealth was a product. People commerce with one another for goods needed they themselves could not produced. As such the way we may think of a modern economy had been made.
How it All Came to Stop
As the Agricultural Revolution came, there came distinction between workers and owners. Those who control the means of production ceased having to provide their own labor. They conducted business not to feed themselves, but to acquire wealth for a myriad of reasons, one being esteem. In the First City Ur, Kings and Priests still have a traditional economy. Then the first merchants came. Production of goods for the sole purpose of trade is the true end to traditional economy. The Western World is shaped by the heritage of the Phoenicians and Romans. Though the feudalism that marked the early Middle Ages was closer to a traditional economy, the reemergence of the merchant class came with a new method of loans and banking.
Advantages of the Traditional Economy
Highly Sustainable (grazing if heavily nomad)
Requires No Major Infrastructure to Function
Requires Little to No Government Oversight
Hugely Responsive to the Needs of Individuals
Disadvantages of the Traditional Economy
No or Limited Specialization of Labor
Cannot Support A Creative Class
Entrepreneurship is Almost Unheard of
A Deficient of a Certain Good is Harder to Overcome
Almost No Excess of Goods/ Long-term Planning
Examples of a Traditional Economy
Inuit, Yupik and Ainu Who Practice Traditional Hunting
All Most Early Man Prior to the Merchant Revolution
Orangutans That Mimic Humans in Captivity
Few North African Peoples Who Still Practice Nomad
Chamberlien, A. T. "Homo Habilis." Archealogyinfo.com. N.p., 2011. Web. 22 Jan. 2015.
"Orangutans in Captivity." Orangutan Facts and Information. N.p., n.d. Web. 22 Jan. 2015.
John Day, Money and finance in the age of merchant capitalism, 1999