Subsistence economy

Subsistence farming or demand management is a form of business is in producing for their own needs ( self-catering ).

Definition

The Latin word subsistence refers to the By -itself - existing. The theoretical economic concept, subsistence economy ' describes the economic principle that underlies the forms of self-sufficiency. In contrast, the expression, self-sufficiency ' all social and economic practices, which serve the necessities of life for oneself or for the local social organization to produce all or part of itself. While the basic principles of the subsistence economy and the labor economy contradict each other, many practices of self- care with the acquisition economy are compatible at the societal level of action and can compensate for their shortcomings.

Properties

Food production in the subsistence economy primarily serves the reproduction of individual households and does not aim to generate the profits. Often the subsistence economy goes hand in hand with natural economy and differs from the transport or market economy, in which the individual goods and services exchanged usually in exchange for money on the market to relate with his income other goods or services. This does not exclude that also in the subsistence economy at local markets surpluses are sold to generate income for necessary investments (eg for tools, salt, etc.).

Max Weber referred to the need for economic opposes as the acquisition economy. All directed at consumers' economy communities operate according to Weber only insofar as this is necessary. As examples he cites about families, charitable foundations or forest communities.

Niklas Luhmann in the subsistence economy the opposite concept to a market economy. She " runs without significant monetary transfer", ie, without the money from mechanism.