What are the advantages and disadvantages of a Traditional Economy?

Answer 1

An economic system deals with who makes what, how much, who buys it, and how they get it.

In a TRADITIONAL economy everything essentially proceeds as it always has. It is controlled by tradition (hence the name) and by culture, instead of forces such as supply and demand or by the government. The only examples of traditional economies are ones where little has changed for centuries - it was used by aborignal Americans and still is by some African and South American tribes.

It has the advantage of being a very smooth system. Everybody knows what happening and how, and because it is an ingrained part of the culture everyone more or less agrees on it. Nobody complains about the price of gasoline because the price of gasoline never changes.

As you might imagine, unresponsiveness is one of its disadvantages - it responds poorly to changing environmental conditions (which is why there pretty much aren't any such systems except in isolation). A traditional system also does not allow much room for innovation. It doesn't matter if you can build a home in half the time using concrete instead of mud and hay... that's just not the way it's done!

Answer 2

Advantages Of Traditional Economy

Answer 3

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What are the advantages and disadvantages of a Traditional Economy?

Answer 4

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The taxes pouring into the federal coffers has hit two consecutive high points in history, and that is adjusting for inflation. And this is after tax cuts. Unemployment has been at the lowest level since the 60's. The Dow is at the highest ever, the only time it was closer was when the Clinton SEC allowed the dot-com fraudsters to create companies whose mission statement was to pay back the initial investors (that's a form of MLM). The Labor Department reports salaries raising faster than anytime since the 80's. More jobs have been created in the period of 2000 to 2005 than from 1990 to 1999. The economy is doing very well. Cut taxes for the wealthy and they invest in the market making the economy stronger, creating more jobs, increasing salaries, and generating income that leads to more purchase power, which leads to taxes pouring in at highest rates in history. Proving for the second time in 18 years that supply side economics works.

Answer 5

You're going to need to define 'Traditional Economy' - at least for this white boy.