Major Features Subsistence Farming - People produce most all of what they need to survive Hunting & Gathering Herding Barter system- trade goods and services for other goods and services. Example Most cultures used this method for thousands of years River Valley Civilizations
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- People produce most all of what they need to survive
Hunting & Gathering
Barter system- trade goods and services for other goods and services
Most cultures used this method for thousands of years
River Valley Civilizations
Pre- Industrial societies
Underdeveloped Countries today (LDC’s)Traditional Economic System
Political, ECONOMIC, and social system.
land = wealth and power
Rigid Social Class system
(Peasants= labor; Nobles=protection)
LOYALTY and SERVICE
Isolated and self-sufficient
500 AD to 1500 AD
Feudal Japan –
1200 AD to 1860 AD
Ends with Meiji Era modernization and industrializationFeudal Economic System
16th & 18th century Europe
Crusades break down feudal system
Nation’s wealth = gold & silver
Colonies exist to serve the Mother Country
Colonies send raw materials
Mother Country manufactures goods and sells them to the colonies
Monarch controls all trade
Favorable balance of trade for the Mother Country
Mother Country’s wealth….leads tocapitalism!!!
HollandMercantilist Economic System
FREE MARKET ECONOMY
Private ownership of business
Supply and Demand; Consumers determine price, etc.
Entrepreneur- starts business on their own
Adam Smith (Wealth of Nations, 1776)
Gov’t “HANDS OFF” the economy
Britain 1750’s …beginning of the Industrial Rev.
USA economy todayCapitalist Economic System
All economic decisions made by gov’t planners
Gov’t owns all property
Gov’t controls all production and distribution of goods
Karl Marx (Communist Manifesto, 1848)
Workers of the world unite… overthrow capitalists
Share resources… EQUALITY for all!
NEVER BEEN TRIED!!!
USSR - Lenin 1917
China – Mao 1949 - 1978
Cuba- Castro 1959
Vietnam 1975 (after the war)…today
North Korea 1948…todayCommunist Economic System(Radical Socialism; Scientific Socialism)
Some gov’t ownership
Somer private ownership
Gov’t gets involved in economy to protect workers’ rights…
National Health Care System, etc.
some capitalist reforms introduced
Scandinavian countries…Sweden, Norway, etc.(DEMOCRATIC) SOCIALISM
POST INDUSTRIAL REVOLUTION ECONOMIC SYSTEMS