Subsistence economy


A subsistence economy is an economy directed to basic subsistence rather than oriented to sustaining a market in essential and desirable assets.

Definition

"Subsistence" is understood as supporting oneself and one's family at a minimum level. Basic subsistence is the provision of food, clothing, and shelter. A subsistence economy is an economy directed to one's subsistence rather than to the market. Often, the subsistence economy is moneyless and relies on natural resources to provide for basic needs through hunting, gathering, and agriculture. In a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization. In hunting and gathering societies, resources are often, if not typically, underused.
The subsistence system is maintained through sharing, feasting, ritual observance, and associated norms.
Harvesting is an important indicator of social capital.
Subsistence embodies cultural perspectives of relationships to places, people and animals.

History

In human history, 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 marginalized areas of developing countries, as well as to some cultures that choose to retain a traditional economy.

List of strategies