Tradition-Based Economy

Definition

A tradition-based economy is an economic system where customs, traditions, rituals, and beliefs shape how goods are produced and distributed within a society. Economic activities are often centered around agriculture or crafts passed down from generation to generation.

Analogy

Picture a family recipe that has been handed down for generations. In a tradition-based economy, economic activities are like following that recipe - they are guided by long-standing customs and practices that have been passed down through the years.

Related terms

Subsistence Economy: An economic system where individuals produce enough to meet their basic needs without generating surplus for trade.

Barter System: A method of exchange where goods or services are traded directly without the use of money.

Cultural Heritage: The traditions, customs, beliefs, and artifacts that are passed down from generation to generation within a society.