A traditional economy is an economic system in which decisions such as the who, how, what, and for whom questions are all made on the basis of customs, beliefs, religion, habit, etc.

It has an advantage over other systems, in that there is little friction among members because relatively little is disputed. However, it restricts individual initiative and has a lack of advanced goods, new technology, and economic growth.

Example: "This is what my grandfather did and what his grandfather did..."

The Traditional Economic system is used by African tribes and was used by Native Americans. It is also found today in some parts of South America, Asia, and Africa. There, people still make clothing and shelter almost exactly the same way as they did in the past.

Economics

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