Advantages and disadvantages of self-sufficient economy

Advantages and disadvantages of self-sufficient economy:

First, the benefits:

1, the natural economy is self-sufficient and there is little commodity exchange.

2. Small-scale peasant economy, simple production conditions, can survive and multiply under relatively poor natural conditions; Because it takes the family as the production and living unit, it is easy to achieve the balance between production and consumption through thrift, so the small-scale peasant economy has a stable side.

Disadvantages: 1 Social division of labor is excluded, and economic activities are confined to the narrow circle with the family as the unit. Each producer or economic unit not only produces the agricultural products it needs, but also produces most of the industrial products it needs. Self-sufficiency is the characteristic of natural economy.

2, the production form is relatively closed, stick to the rules, exclude technological progress, hinder the development of social productive forces.

The difference between self-sufficient economy and small-scale peasant economy;

1. Small-scale peasant economy with family as the unit, based on individual ownership of the means of production, and relying entirely or mainly on their own labor to meet their own consumption. Among them, some operate with their own land, some operate with leased land, and some have both.

2. Self-sufficiency economy is the main economic form under the feudal economic form of traditional society. It is combined with commodity economy and mutually exclusive. It cannot be said that there is no commodity exchange in the natural economy. It refers to an economic form in which production is to directly meet the needs of producers or economic units, rather than to exchange. Natural economy is the opposite of commodity economy and a manifestation of private ownership economy.