A subsistence economy is a non-monetary economy which relies on natural resources to provide for basic needs, through hunting, gathering, and subsistence agriculture. "Subsistence" means supporting oneself at a minimum level; in a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization.
In the history of the world, before the first cities, all humans lived in a subsistence economy. As urbanization, civilization, and division of labor spread, various societies moved to other economic systems at various times. Some remain relatively unchanged, ranging from uncontacted peoples, to poor areas of developing countries, to some cultures that choose to retain a traditional economy.
Capital can be generally defined as assets invested with the expectation that their value will increase, usually because there is the expectation of profit, rent, interest, royalties, capital gain or some other kind of return. However, this type of economy cannot usually become wealthy by virtue of the system, and instead requires further investments to stimulate economic growth. In other words, a subsistence economy only possesses enough goods to be used by a particular nation to maintain its existence and provides little to no surplus for other investments. Therefore, this type of economy aims to create economic stability so that capital can be accumulated and the inevitable economic surplus can be invested in other potentially lucrative business ventures.
- Pastoralism, the raising of grazing animals:
- Pastoral nomadism — all members of the pastoral society follow the herd throughout the year.
- Transhumance or agro-pastoralism — part of the society follows the herd, while the other part maintains a home village.
- Ranch agriculture — non-nomadic pastoralism with a defined territory.
- Distribution and Exchange:
- Reciprocity — exchange between social equals.
- Potlatching — a widely studied ritual in which sponsors (helped by their entourages) gave away resources and manufactured wealth while generating prestige for themselves.
- LETS — Local Exchange Trading Systems.
- A parasitical society, subsisting on the produce of a separate host society
- ^ http://www.businessdictionary.com/definition/subsistence-economy.html
- ^ http://www1.umn.edu/humanrts/edumat/sustecon/others/subsistence.htm Chief Seattle to President Pierce regarding sale of land
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Thu, 17 Apr 2014 13:26:15 -0700
16 different working groups convened to discuss issues that were raised during the strike such as land, collective territories, and territoriality systems; a campesino subsistence economy vs. the model of spoliation; mining and energy; illicit ...
Sat, 12 Apr 2014 11:33:36 -0700
Before that, in the subsistence economy, hunters ate meat, fisherfolk ate fish, foragers ate berries and obesity was unknown. Real economic activity began when a fisherman bartered a mahseer for a forager's papaya (substitute trade goods according to ...
Tue, 15 Apr 2014 16:08:15 -0700
The landscape is peppered with designers, hoteliers, spice growers, taxi operators, retailers, content providers and such, taking advantage of the local subsistence economy or the information highway all the way to infinity. The lack of urban planning ...
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Fri, 11 Apr 2014 20:42:32 -0700
She compared it to the subsistence economy, where 70 percent of the resources are harvested by 30 percent of the people, but the resources are still shared across the entire community. "Never once have I heard of an instance where a hunter withheld ...
Tue, 08 Apr 2014 21:52:26 -0700
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Thu, 10 Apr 2014 09:18:45 -0700
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Wed, 09 Apr 2014 14:45:00 -0700
... frequently involves bearing witness to yet another suddenly-shuttered local business, mostly the ones that don't worry so much about their looks, but instead are packed to the brim with everyday things, the urban version of a subsistence economy ...
Thu, 03 Apr 2014 15:43:03 -0700
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