Family economy

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In European Countries; The term Family Economy can be used to describe the family as an economic unit.The early stages of development in many economies are characterized by family based production.[1] In the early, pre-industrial stage, technology was limited and unchanging. Most economic activity took place within the household, and production and distribution were organized by custom and tradition.[2] High mortality rates and low productivity meant that on the farms and in the towns life was short and living conditions were harsh – an existence which was accepted fatalistically. In this society the family played a central role, since economic and social status was defined by birth, family ties, and local custom. Most importantly, the family was a productive unit, and physical strength – typically a male attribute – was an essential element in survival.[1] The family economic unit has always been dependent on specialized labor done by family members. The family was a multi-generational producer with capital and land provided by older generations and labor provided by younger generations. Goods were produced not only for home consumption but to sell and trade in the market as well. Family production was not only limited to agricultural products but they also produced manufacturing goods and provided services.[3] In order to sustain a viable family economy during the pre-industrial era labor was needed. The labor needed to operate the farm and provide old-age support came from family members, fertility was high. High fertility and guaranteed employment on the family farm made education, beyond the basic literacy needed to read the bible, expensive and unnecessary.[4] During the post industrial stage the family as an economic unit changed.The family transformed from being a unit of production to being a unit of consumption. This new era of industrialization brought changes where farming can be done with less persons, therefore children were no longer to be viewed as economic assets but rather as liabilities. Industralization further contributed to the demise of the family economy where the capitalist market encouraged production in large scale factories, farms and mines. Wage labor became common and family members no longer worked together but rather used the wages they had earned to buy goods which they consumed as a family unit.[5] The industrial revolution, starting in the nineteenth and going into the twentieth century, is seen as the force that changed the economic family and is basically responsible for the "modern family."

In other Countries there were similar dynamics of "family economy" though they, depending on customs and culture, differed greatly from the European models of family economy. However, it must be said that the effect of industrialization has had other more detrimental impacts on non European Countries due to the climate colonization where industry is controlled by foreigner governments and investors and the wealth is displaced and dispossessed from the lands and indigenous peoples including but not limited to natural resources. Family Economy in the definitions given here are mainly biased towards Eurocentric histories and agrarian societies, as tribal and or hunter gatherer communities had different models of family economy that were more cooperative in nature.

Further reading

Nussbaum, M. (2000) Women and Development: The Capabilities Approach, Cambridge University Press, New York.

Paarlberg, Don. "The Future of the Family Farm." The Saturday Evening Post. March 1976, pp. 42–43.

References

  1. 1.0 1.1 Parente, S.L., Rogerson, R. & Wright, R., (2000). Homework in Development Economics: Household Production and the Wealth of Nations. Journal of Political Economy, 108, 680-687.
  2. Ross, H. L. , Sawhill, I.V.(1977).The Family as an Economic Unit. The Wilson Quarterly,1,2.Retrieved from: http://www.jstor.org/stable/40255183
  3. Sellers, C.(1991). The Market Revolution: Jacksonian America, 1815-1846 Oxford University Press, New York.
  4. Carter, S.B., Ransom, R.L., & Sutch, R.(2003). Family Matters: The Life-Cycle Transition and the Unparalleled Fertility Decline in Antebellum America. In Craig, L.(Ed.), To Sow One Acre More(pp. 107-113)Johns Hopkins University Press, Baltimore
  5. Ruggles, S. (2001). Living Arrangements and the Well-being of Older Persons in the Past, Population Bulletin of the United Nations, 42/43, 111-161

Family Economy is used to denote the basic structure of production and consumption by Danny Pearson. In the family economy there were regional variations, which were how different places were different in family economy.

In Western Europe the peasants owned their own land which they farmed on for profit and survival. In Eastern Europe however, the serfs worked for an owner and were controlled by them to produce food to sell to gain money for the owner, usually nobles.

Throughout Europe the household was a fundamental unit in production and consumption. The household consisted of the parents their children through early teen years, and servants; except the wealthy households were quite small. Each member had a different role as far as the family economy was concerned.

By age seven, girls were contributing to the family economy. She might look after the chickens, water the animals, or carry food to the adult workers. The girls would remain at home as long as they could contribute to the family.

Most of them however left the household between the ages of 12–14. They would migrate to other farms, cities or towns and become working servants. A young woman’s primary goal was to accumulate a dowry. This was a gift given to the new household at the time of marriage.

A married woman was a function to her husband's occupation. She would do things from collecting grain to plowing fields to begging during an economic depression.

The role of the children was slightly different. The child was at times an economic burden, although in some cases the more children you had the more workers you had, making a more efficient family economy.

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