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Features of Simple Economy
In the contemporary world, economies are typically complex and multifaceted, composed of numerous interconnected sectors and industries. However, the concept of a simple economy provides a contrasting perspective, reminiscent of earlier societal stages where economies were primarily characterized by small scale, self-sufficiency, and limited diversification [1].

Characteristic Features of Simple Economies
A simple economy, often associated with small, isolated societies, exhibits several distinctive traits.
Limited Division of Labour
In a simple economy, the division of labor is primarily based on age, gender, and physical capabilities. The variety of occupations is minimal, with most individuals engaged in similar types of work, often pertaining to subsistence [2].
Low Level of Economic Specialization
Simple economies lack extensive economic specialization. Unlike advanced economies where individuals can have highly specialized professions, in simple economies, each member of the society is generally skilled in a wide range of survival tasks [3].
Absence of Standardized Money
In simple economies, a standardized form of money typically doesn’t exist. Instead, goods and services are traded directly, a system known as barter [4].
Dependence on Nature
Simple economies are heavily dependent on nature for their basic needs like food, shelter, and clothing. This dependence often translates into cyclical patterns of economic activity aligned with seasonal changes.
Limited Use of Technology
Technological usage in simple economies is low. The tools and methods employed for production are usually basic and passed down through generations.
Simple Economy and Subsistence Strategies
Anthropologists have identified two primary types of subsistence strategies in simple economies: hunting and gathering, and simple horticulture.
Hunting and Gathering
This is the oldest form of subsistence strategy where society members collect wild plants and hunt wild animals. They often lead a nomadic lifestyle and have a minimal impact on the environment.
Table 1: Features of Hunting and Gathering
Feature | Description |
---|---|
Mobility | Societies often move to exploit seasonal resources |
Small group size | Limited by the carrying capacity of the environment |
Egalitarian | Generally equal access to resources |
Simple Horticulture
In simple horticultural societies, people cultivate plants using simple tools without relying on advanced techniques like irrigation, draft animals, or crop rotation.
Table 2: Features of Simple Horticulture
Feature | Description |
---|---|
Semi-sedentary | Communities may move but less frequently than hunter-gatherers |
Larger group size | Ability to produce surplus leads to larger population sizes |
Possibility of inequality | Surplus can lead to accumulation and social stratification |
Conclusion
Understanding the characteristics of simple economies can provide a foundational perspective for appreciating the complexities and diversifications present in today’s global economy. By examining the economic structure of simple societies, we can also gain valuable insights into the evolution of human social systems and economic behaviors.
References
[1] Sahlins, M. (1972). Stone Age Economics. Aldine Transaction. https://ia801309.us.archive.org/15/items/StoneAgeEconomics_201611/StoneAgeEconomics-MarshallSahlins.pdf
[2] Diamond, J. (1997). Guns, Germs, and Steel: The Fates of Human Societies. W. W. Norton & Company.
[3] Bird-David, N. (1990). The Giving Environment: Another Perspective on the Economic System of Gatherer-Hunters. Current Anthropology, 31(2), 189-196.
[4] Graeber, D. (2011). Debt: The First 5000 Years. Melville House.