No, said Mises, for if taken back far enough, there comes a point at which money first emerges as a medium of exchange out of a pure barter economy Prior to this, it is valued only for its non-monetary uses as a commodity The demand for money is therefore pushed back to the last day of barter, where goods are traded only in direct exchange, and where the temporal element of the regression theorem ends It is in this way that all charges of circularity are obviated.

Her answer came, finally, in an unlikely place: at a bar on Robson Street in Vancouver during the Winter Olympics. It was close to midnight, and she was waiting in line for a drink. All around her, people were partying—except for the two women in front of her, who were dissecting the differences between tax-free savings accounts and RRSPs. Simmons barged in to their conversation. “What do you want to know about TFSAs?” she asked. “What’s your goal?” She pulled the two aside and, for 20 minutes, gave an impromptu finance session. As a gesture of thanks, the two women bought Simmons and her group a round of beer. “I can’t afford financial advice,” one of them told Simmons, “but at least I can give everybody here a beer.” Then, Simmons felt like a cartoon megawatt bulb appeared over her head. It is all you can do, she thought. It is all you can do. There, in the middle of the crowded bar, she blurted, “Oh my god! I’m bringing barter back!”


In 2010, Shannon Lee Simmons had it easy. Though the economy was two years into its recessionary lurch, she had a secure job at Phillips, Hager and North, a boutique Bay Street investment firm. She was 25 years old and earning $55,000 a year, plus bonuses. She had no debt, no kids, and enough disposable income to jet off to Europe with her boyfriend and pay her credit card bills on time. Simmons is driven and effervescent, and has the charming tendency to slip into club-kid slang. Speaking of her time back then, she says: “I was ballin’.” 

For one thing, the barter myth “makes it possible to imagine a world that is nothing more than a series of cold-blooded calculations,” writes Graeber in Debt. This view is quite common now, even when behavioral economists have made a convincing case that humans are much more complicated—and less rational—than classical economic models would suggest.
A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. Today, bartering has made a comeback using techniques that are more sophisticated to aid in trading; for instance, the Internet. In ancient times, this system involved people in the same area, however today bartering is global. The value of bartering items can be negotiated with the other party. Bartering doesn't involve money which is one of the advantages. You can buy items by exchanging an item you have but no longer want or need. Generally, trading in this manner is done through Online auctions and swap markets.
However, this isn’t always possible. For instance, you may have a $150 digital music player and want a small refrigerator worth $100. In this case, if both parties are certain of what they want and understand the difference in value, there should be no barterer’s remorse. Alternatively, you can ask for the mini-fridge plus $50 to make the trade – the worst anyone can say is “no.”
It is estimated that over 450,000 businesses in the United States were involved in barter exchange activities in 2010. There are approximately 400 commercial and corporate barter companies serving all parts of the world. There are many opportunities for entrepreneurs to start a barter exchange. Several major cities in the U.S. and Canada do not currently have a local barter exchange. There are two industry groups in the United States, the National Association of Trade Exchanges (NATE) and the International Reciprocal Trade Association (IRTA). Both offer training and promote high ethical standards among their members. Moreover, each has created its own currency through which its member barter companies can trade. NATE's currency is the known as the BANC and IRTA's currency is called Universal Currency (UC).[citation needed] In Canada, the largest barter exchange is Tradebank, founded in 1987. In the United States, the largest barter exchange and corporate trade group is International Monetary Systems, founded in 1985, now with representation in various countries. In Australia and New Zealand the largest barter exchange is Bartercard, founded in 1991, with offices in the United Kingdom,United States, Cyprus,UAE and Thailand.[citation needed] 

Michael Linton originated the term "local exchange trading system" (LETS) in 1983 and for a time ran the Comox Valley LETSystems in Courtenay, British Columbia.[22] LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.
The history of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians. Phoenicians bartered goods to those located in various other cities across oceans. Babylonian's also developed an improved bartering system. Goods were exchanged for food, tea, weapons, and spices. At times, human skulls were used as well. Salt was another popular item exchanged. Salt was so valuable that Roman soldiers' salaries were paid with it. In the Middle Ages, Europeans traveled around the globe to barter crafts and furs in exchange for silks and perfumes. Colonial Americans exchanged musket balls, deer skins, and wheat. When money was invented, bartering did not end, it become more organized.
The first 23 Barter Babes to join were friends and former PH&N co-workers who wanted to support Simmons. They mostly traded items and services to help out with the launch party: a lot of food, a press release, coat racks, silent auction items, courier services and social media consulting. Barter Babe No. 24, Grace Poon, was the first person to sign up for the project with whom Simmons had no prior connection. In exchange for Simmons’s financial advice, Poon provided graphic designs for an investment presentation (which Simmons still uses today). She remembers being excited, but also nervous: it was the first trade she’d made with someone who didn’t feel obligated to give her unconditional support. She needn’t have worried.
In England, about 30 to 40 cooperative societies sent their surplus goods to an "exchange bazaar" for direct barter in London, which later adopted a similar labour note. The British Association for Promoting Cooperative Knowledge established an "equitable labour exchange" in 1830. This was expanded as the National Equitable Labour Exchange in 1832 on Grays Inn Road in London.[18] These efforts became the basis of the British cooperative movement of the 1840s. In 1848, the socialist and first self-designated anarchist Pierre-Joseph Proudhon postulated a system of time chits. In 1875, Karl Marx wrote of "Labor Certificates" (Arbeitszertifikaten) in his Critique of the Gotha Program of a "certificate from society that [the labourer] has furnished such and such an amount of labour", which can be used to draw "from the social stock of means of consumption as much as costs the same amount of labour."[19]
Simmons learned how to ask after one Barter Babe, a veteran barterer, told her she needed to post a wish list. Following the advice, she eventually got not just one bike but two (one for her and one for Matt), a TTC pass, yoga lessons, a haircut and food she wanted to eat, among hundreds of other things. Simmons made exceptions for some unique trades, too, such as both circus performance training and butter churning lessons, the latter of which she now barters as a skill to others. She even worked up the nerve to approach local businesses in person, armed with a business case for barter. One café near her apartment traded a month’s worth of morning coffee for a financial session; a boutique hotel, Hotel Ocho at Queen and Spadina, took a financial seminar luncheon for its employees in return for an overnight stay for Simmons’s parents, who were celebrating their 35th anniversary.
The history of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians. Phoenicians bartered goods to those located in various other cities across oceans. Babylonian's also developed an improved bartering system. Goods were exchanged for food, tea, weapons, and spices. At times, human skulls were used as well. Salt was another popular item exchanged. Salt was so valuable that Roman soldiers' salaries were paid with it. In the Middle Ages, Europeans traveled around the globe to barter crafts and furs in exchange for silks and perfumes. Colonial Americans exchanged musket balls, deer skins, and wheat. When money was invented, bartering did not end, it become more organized.
In the United States, Karl Hess used bartering to make it harder for the IRS to seize his wages and as a form of tax resistance. Hess explained how he turned to barter in an op-ed for The New York Times in 1975.[31] However the IRS now requires barter exchanges to be reported as per the Tax Equity and Fiscal Responsibility Act of 1982. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, "The fair market value of goods and services exchanged must be included in the income of both parties."[32] 

In Spain (particularly the Catalonia region) there is a growing number of exchange markets.[24] These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed.[25]
If you've ever swapped one of your toys with a friend in return for one of their toys, you have bartered. Bartering is trading services or goods with another person when there is no money involved. This type of exchange was relied upon by early civilizations. There are even cultures within modern society who still rely on this type of exchange. Bartering has been around for a very long time, however, it's not necessarily something that an economy or society has relied solely on.
When barter has appeared, it wasn’t as part of a purely barter economy, and money didn’t emerge from it—rather, it emerged from money. After Rome fell, for instance, Europeans used barter as a substitute for the Roman currency people had gotten used to. “In most of the cases we know about, [barter] takes place between people who are familiar with the use of money, but for one reason or another, don’t have a lot of it around,” explains David Graeber, an anthropology professor at the London School of Economics.
While there are most certainly safety considerations – and in some cases, a time commitment – bartering can be quite rewarding. You may not have a surplus of spendable money, but you do have talents, skills, and miscellaneous goods that are just as good as cash. With a little thought, and willingness to make the effort, you can use bartering to obtain the goods and services you want without impeding your cash flow.

1.Jump up ^ O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in Action. Pearson Prentice Hall. p. 243. ISBN 0-13-063085-3. 2.^ Jump up to: a b Graeber, David (2011). Debt: the first 5,000 years. New York: Melville House. pp. 21–41. 3.Jump up ^ Humphrey, Caroline (1985). "Barter and Economic Disintegration". Man 20 (1): 49. 4.^ Jump up to: a b Humphrey, Caroline (1985). "Barter and Economic Disintegration". Man 20 (1): 48. 5.Jump up ^ Humphrey, Carolyn and Stephen Hugh-Jones (ed.). Barter, Exchange and Value: An Anthropological Approach. Cambridge: Cambridge University Press. p. 3. 6.Jump up ^ Graeber, David (2001). Toward an Anthropological Theory of Value: The False Coin of our Dreams. New York: Palgrave. p. 154. 7.Jump up ^ Graeber, David (2011). Debt: the first 5,000 years. New York: Melville House. pp. 40–41. 8.Jump up ^ Graeber, David (2001). Toward an Anthropological Theory of Value: The false coin of our own dreams. New York: Palgrave. pp. 153–4. 9.Jump up ^ Graeber, David (2011). Debt: The First 5,000 Years. Brooklyn, NY: Melville House. pp. 94–102. 10.Jump up ^ Robert E. Wright and Vincenzo Quadrini. Money and Banking.Chapter 3, Section 1: Of Love, Money, and Transactional Efficiency Accessed June 29, 2012 11.Jump up ^ Humphrey, Caroline (1985). "Barter and Economic Disintegration". Man 20 (1): 66–7. 12.Jump up ^ Plattner, Stuart (1989). Plattner, Stuart, ed. Economic Anthropology. Stanford, CA: Stanford University Press. p. 179. 13.Jump up ^ M. Bloch, J. Parry (1989). Money and the Morality of Exchange. Cambridge: Cambridge University Press. p. 10. 14.Jump up ^ Humphrey, Caroline (1985). "Barter and Economic Disintegration". Man 20 (1): 52. 15.Jump up ^ Polanyi, Karl (1957). Polanyi, Karl et al, ed. Trade and Market in Early Empires. Glencoe, Illinois: The Free Press. p. 14. 16.Jump up ^ Harrison, John (1969). Quest for the New Moral World: Robert Owen and the Owenites in Britain and America. New York: Charles Scibners Sons. p. 72. 17.Jump up ^ Harrison, John (1969). Quest for the New Moral World: Robert Owen and the Owenites in Britain and America. New York: Charles Scibners Sons. p. 73. 18.Jump up ^ Harrison, John (1969). Quest for the New Moral World: Robert Owen and the Owenites in Britain and America. New York: Charles Scibners Sons. pp. 202–4. 19.Jump up ^ Tadayuki Tsushima, Understanding “Labor Certificates” on the Basis of the Theory of Value, 1956 20.Jump up ^ Homenatge A Catalunya II (Motion Picture). Spain, Catalonia: IN3, Universita Oberta de Catalunya, Creative Commons Licence. 2010. Retrieved January–2011. "A documentary, a research, a story of stories about the construction of a sustainable, solidarity economics and decentralized weaving nets that overcome the individualization and the hierarchical division of the work, 2011." 21.Jump up ^ Barcelona's barter markets (from faircompanies.com. Accessed 2009-06-29.) 22.Jump up ^ "What is LETS?". AshevilleLETS. Retrieved December 9, 2008. 23.Jump up ^ TIMES, nov. 2009 24.Jump up ^ David M. Gross, ed. (2008). We Won’t Pay: A Tax Resistance Reader. pp. 437–440. 25.Jump up ^ Tax Topics - Topic 420 Bartering Income. United States Internal Revenue Service
But various anthropologists have pointed out that this barter economy has never been witnessed as researchers have traveled to undeveloped parts of the globe. “No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money,” wrote the Cambridge anthropology professor Caroline Humphrey in a 1985 paper. “All available ethnography suggests that there never has been such a thing.”
During economic downturns, when there is a keenly felt shortage of jobs and cash, people have historically adopted barter systems. The world’s most established bartering-style system is Switzerland’s wir: the German word for “we” as well as the abbreviation of Wirtschaftsring, which translates loosely to “economic circle.” In 1934, the economy in Switzerland had tanked—as it had in much of the world. Two businessmen who were facing bankruptcy, Paul Enz and Werner Zimmermann, gathered 15 of their associates in Zurich and hashed out a solution: a mutual credit system.
The man who arguably founded modern economic theory, the 18th-century Scottish philosopher Adam Smith, popularized the idea that barter was a precursor to money. In The Wealth of Nations, he describes an imaginary scenario in which a baker living before the invention of money wanted a butcher’s meat but had nothing the butcher wanted.“No exchange can, in this case, be made between them,” Smith wrote.
While there are most certainly safety considerations – and in some cases, a time commitment – bartering can be quite rewarding. You may not have a surplus of spendable money, but you do have talents, skills, and miscellaneous goods that are just as good as cash. With a little thought, and willingness to make the effort, you can use bartering to obtain the goods and services you want without impeding your cash flow.
Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation. He argued (against conventional wisdom) that money was not the creation of governments. Markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the "double coincidence of wants" which barter requires, i.e., for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal, that they thought no one would refuse. This is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated.[2]

Barter Network Ltd. is a proud member of The International Reciprocal Trade Association, IRTA, which is a non-profit organization committed to promoting just and equitable standards of practice and operation within the Modern Trade and Barter and other Alternative Capital Systems Industry, by raising the awareness and value of these processes to the entire Global Community. IRTA provide all Industry Members with an ethnically based global organization, dedicated to the advancement of Modern Trade and Barter and other Alternative Capital Systems, through the use of education, self-regulation, high standards and government relations. The Board of IRTA consists of Key Players in the Barter Industry, With Patti Falus President of Barter Network Ltd. being the only Canadian who sits on the Board.
But various anthropologists have pointed out that this barter economy has never been witnessed as researchers have traveled to undeveloped parts of the globe. “No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money,” wrote the Cambridge anthropology professor Caroline Humphrey in a 1985 paper. “All available ethnography suggests that there never has been such a thing.”

A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. Today, bartering has made a comeback using techniques that are more sophisticated to aid in trading; for instance, the Internet. In ancient times, this system involved people in the same area, however today bartering is global. The value of bartering items can be negotiated with the other party. Bartering doesn't involve money which is one of the advantages. You can buy items by exchanging an item you have but no longer want or need. Generally, trading in this manner is done through Online auctions and swap markets.
For one thing, the barter myth “makes it possible to imagine a world that is nothing more than a series of cold-blooded calculations,” writes Graeber in Debt. This view is quite common now, even when behavioral economists have made a convincing case that humans are much more complicated—and less rational—than classical economic models would suggest.
Nowinska says one of the biggest challenges Swapsity faces is that new barterers think they have nothing to offer. So they offer bad trades. Yet most people have hundreds of skills—from cooking to networking to scrapbooking. The trick is learning to recognize the value of your skills, your knowledge and your talent. Bartering attaches value to things that are not always recognized, or highly valued, in a cash economy—often hobbies that people can’t make a living on but love to do. One Barter Babe trades her homemade canned goods for gifts—mostly other crafted items—she can give away at Christmas. A Swapsity member has traded pounds of fiddleheads she picks at her mom’s house in the country for feng shui sessions. 

Use our virtual trade currency called Trade Dollars to purchase anything you want within the exchange. Our Trade Dollars are equivalent to the value of the Canadian Dollar. Our members are asked to price their products and services within the exchange at fair market value. This means you pay exactly the same amount for the offered goods and services as you would in the cash world. The only difference is, you now have the ability to buy things at a discount or at your own cost of doing business!


Check online swap markets and online auctions that have a bartering component such as Craigslist.com (check under "For Sale" for the Bartering category), Swapace.com, SwapThing.com, Barterquest.com, U-Exchange.com, Trashbank.com and Ourswaps.com. Check for local bartering clubs. Your local Chamber of Commerce may be able to provide you with information on similar clubs in your area.
Yes…yes…yes! When I went to school to become a Registered Massage Therapist, and discovering how difficult it (still) is for a male RMT to get a legit job be it here or a small town, our instructor told us to consider bartering whenever possible. This was in a smaller city (100,000) where bartering can do well for you to make inroads with the Downtown Council, locally owned businesses; let’s say for example a new yoga studio or health club or salon is opening. I bring my massage chair over and do free 10 minute chair massages and give out my business card, in exchange, the yoga groups can use my space if they need to add an extra class. The salon knows if they’re doing a training on a day I’m not working, they can use my studio. Things like that.
Economic historian Karl Polanyi has argued that where barter is widespread, and cash supplies limited, barter is aided by the use of credit, brokerage, and money as a unit of account (i.e. used to price items). All of these strategies are found in ancient economies including Ptolemaic Egypt. They are also the basis for more recent barter exchange systems.[15]
Barter Network Ltd. is a proud member of The International Reciprocal Trade Association, IRTA, which is a non-profit organization committed to promoting just and equitable standards of practice and operation within the Modern Trade and Barter and other Alternative Capital Systems Industry, by raising the awareness and value of these processes to the entire Global Community. IRTA provide all Industry Members with an ethnically based global organization, dedicated to the advancement of Modern Trade and Barter and other Alternative Capital Systems, through the use of education, self-regulation, high standards and government relations. The Board of IRTA consists of Key Players in the Barter Industry, With Patti Falus President of Barter Network Ltd. being the only Canadian who sits on the Board. 

Barter Network Ltd. is a proud member of The International Reciprocal Trade Association, IRTA, which is a non-profit organization committed to promoting just and equitable standards of practice and operation within the Modern Trade and Barter and other Alternative Capital Systems Industry, by raising the awareness and value of these processes to the entire Global Community. IRTA provide all Industry Members with an ethnically based global organization, dedicated to the advancement of Modern Trade and Barter and other Alternative Capital Systems, through the use of education, self-regulation, high standards and government relations. The Board of IRTA consists of Key Players in the Barter Industry, With Patti Falus President of Barter Network Ltd. being the only Canadian who sits on the Board.
An alternate currency, denominated in labour time, would prevent profit taking by middlemen; all goods exchanged would be priced only in terms of the amount of labour that went into them as expressed in the maxim 'Cost the limit of price'. It became the basis of exchanges in London, and in America, where the idea was implemented at the New Harmony communal settlement by Josiah Warren in 1826, and in his Cincinnati 'Time store' in 1827. Warren ideas were adopted by other Owenites and currency reformers, even though the labour exchanges were relatively short lived.[20]
“Economic theory has always got to be historically bounded,” Beggs says. “I think it’s a mistake to think you’ll find the workings of modern money by going back to the origins of money.” He does point out that, while barter may not have been widespread, it’s possible that it happened somewhere and led to money, just given how much is unknown about such a large period of time.
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