Subsistence economy: meaning and characteristics

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Throughout history, there have been many different economic systems, some characterizing the time in which they happened, but others remaining in many different eras. The economic systems that have managed to maintain themselves for centuries, not being slaves of their time, have undergone changes but their base has always been the same. To understand one of the most important economic systems in history, today in this lesson from a PROFESSOR we are going to talk about the meaning and characteristics of the subsistence economy.

Index

1. What is the subsistence economy?
2. Characteristics of the subsistence economy
3. Societies based on the subsistence economy

The subsistence economy is the economic system that characterized societies before the industrial Revolution, although it also characterizes certain societies, both historical and current, whose production technology it is not fully developed.

This system refers to the agriculture, livestock and fishing, that is, to the activities that we relate to the primary sectorTasks that had greater importance during the Middle Ages and Modern Ages, times when the subsistence economy was more characteristic. The system is based on production to survive, not looking for the surplus to sell, producing only for own consumption.

This economic system carried serious problems in societies, since in times of drought or bad harvests, populations lost their only livelihood, causing a strong demographic shock, increased mortality and decreased birth rates. The move to other economic systems changed this, since by generating surplus you could get money or other goods, and with this you can have a kind of "mattress" in case you have a bad harvest per year following.

The subsistence economyIt is undoubtedly one of the most important economic systems in history, thanks to, among other things, its long duration over time. He is considered like one of the three great economic systems of history, along with capitalism and slavery. Its influence is such that even after the industrial revolution, there are societies that base their economy on this economic system.

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To continue with this lesson on the meaning and characteristics of the subsistence economy, we must talk about the features that define this economic system and differentiate it from the others.

First of all we must understand that the subsistence economy is based on an immediate consumption mechanism by the family or community. Subsistence is sought in the moment, without worrying about the future, the important thing is to be able to eat in the present. Production is not usually accumulated, due in part to the fact that the quantity of products that is obtained through this system is minimal.

Another characteristic is that the subsistence economy is highly related to the activities of the primary sector, being jobs much more related to immediate consumption than those of the secondary and tertiary sector. Some of these activities are fishing, livestock or primary agriculture. Coupled with this is the characteristic of traditional work, since all these activities are carried out in a very traditional way, with hardly any technology that would help increase production.

Families in this economic system become production units, there is a division of labor within the family itself, depending on the ages and sex of the members.

The main problem with this system is when a subsistence crisis, that is, a period of food shortage, which can have dire consequences for society. These subsistence crises have provoked throughout history numerous riots of subsistence, that is, periods in which a large popular mass asked for food due to scarcity food. Some famous subsistence riots are the Mutiny of the Cats and the Mutiny of Esquilache.

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Both in the past and in the present you can see this type of economic system, although the The reality is that after the industrial revolution, most societies preferred to move to another type of system.

• The main society based on the subsistence economy is that of the feudalism, which we have already talked about in previous lessons. In summary, we could say that it was a system based on a relationship of vassalage between the feudal lords and the vassals. The vassals took care of the land in order to survive, and in return they paid the feudal lord.
• Other subsistence-based societies are the African ethnic communities, small communities that base their lives on their own consumption. Unfortunately, the advance of the Western world means that fewer of these ethnic communities exist.
• We can also mention other societies of the Middle and Modern Ages, but not from Europe. Being great examples the American communities before European colonization, or the Asian territories that base their economy on agriculture.

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