No academics I talked to were aware of any evidence that barter was actually the precursor to money, despite the story’s prevalence in economics textbooks and the public’s consciousness. Some argue that no one ever believed barter was real to begin with—the idea was a crude model used to simplify the context of modern economic systems, not a real theory about past ones.

In 2012, the average Canadian had more than $27,000 in consumer debt. Wages are shrinking, costs are rising, and one-third of us are living paycheque to paycheque. “Most of us live beyond our means both financially and ecologically,” says Marta Nowinska, founder and president of one of Canada’s largest bartering communities, Swapsity, which launched in 2010. “Swapping is a viable approach to solving a lot of real problems,” she says. Like Simmons, Nowinska left a Bay Street job to join the world of barter. The idea for Swapsity came to her one day in 2006: she was on the subway and noticed how miserable everybody looked. She started to think about a business that could empower people. At first, she thought people could swap jobs, but dismissed it as unrealistic. Then: what if they could swap other things? She developed a business plan and launched a website.


For instance, each time Apple releases a new version of the iPhone, the second-hand market for older versions of the iPhone enjoys a flurry of activity. However, you do have to be as careful with the barter of used goods as you would be with the purchase of used goods. Be sure everything is in working order and shows no signs of significant damage.
Bartering does have its limitations. Many bigger (i.e., chain) businesses will not entertain the idea and even smaller organizations may limit the amount of goods or services for which they will barter (i.e., they may not agree to a 100% barter arrangement and instead require that you make at least partial payment). But in an economic crunch, bartering can be a great way to get the goods and services you need without having to pull money out of your pocket.

Other anthropologists have questioned whether barter is typically between "total" strangers, a form of barter known as "silent trade". Silent trade, also called silent barter, dumb barter ("dumb" here used in its old meaning of "mute"), or depot trade, is a method by which traders who cannot speak each other's language can trade without talking. However, Benjamin Orlove has shown that while barter occurs through "silent trade" (between strangers), it also occurs in commercial markets as well. "Because barter is a difficult way of conducting trade, it will occur only where there are strong institutional constraints on the use of money or where the barter symbolically denotes a special social relationship and is used in well-defined conditions. To sum up, multipurpose money in markets is like lubrication for machines - necessary for the most efficient function, but not necessary for the existence of the market itself."[12]


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.
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]
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value."[16] This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an I.O.U. circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.

Bartering allows individuals to trade items that they already have but are not using for items that they need while keeping their cash on hand for expenses that cannot be paid through bartering such as a mortgage, medical bills and utilities. Bartering can also have a psychological benefit because it can create a deeper personal relationship between trading partners than a typical monetized transaction. Bartering can also help people build professional networks and market their businesses.
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
It helped that she had something other people wanted. “If I had gone in and offered to bake a pie for a free night at their hotel,’ they’d probably have said ‘no.’ ” One Barter Babe, Carly Boyce, knitted Simmons an exact replica of a favourite hat Simmons had lost but luckily had a picture of herself wearing. When it came time for the trade, Boyce remembers feeling guilty because the hat was so easy for her to make, and she told Simmons so. Simmons laughed: it was incredibly easy, she told Boyce, for her to give financial advice. It was a funny conversation, Boyce says, but also one that gets at the essence of bartering: when money is taken out of the equation, value is a moving, customizable concept—and that’s just the way most barterers like it.
Deciding to become a BarterPay member was a huge a step forward for our company. As we were just starting out when we joined, it gave us many advertising and opportunities which we wouldn't have been able to afford otherwise. We were also able to network with other companies in BarterPay which really helped get our name out to non trade clients. I believe that because of BarterPay our company is years ahead of where it would be without having decided to join. 

This sort of scenario was so undesirable that societies must have created money to facilitate trade, argues Smith. Aristotle had similar ideas, and they’re by now a fixture in just about every introductory economics textbook. “In simple, early economies, people engaged in barter,” reads one. (“The American Indian with a pony to dispose of had to wait until he met another Indian who wanted a pony and at the same time was able and willing to give for it a blanket or other commodity that he himself desired,” read an earlier one.)
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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.
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.”
No academics I talked to were aware of any evidence that barter was actually the precursor to money, despite the story’s prevalence in economics textbooks and the public’s consciousness. Some argue that no one ever believed barter was real to begin with—the idea was a crude model used to simplify the context of modern economic systems, not a real theory about past ones.
But the harm may go deeper than a mistaken view of human psychology. According to Graeber, once one assigns specific values to objects, as one does in a money-based economy, it becomes all too easy to assign value to people, perhaps not creating but at least enabling institutions such as slavery (in which people can be bought) and imperialism (which is made possible by a system that can feed and pay soldiers fighting far from their homes).
Corporate barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a "trade-credit". The trade-credit must not only be known and guaranteed, but also be valued in an amount the media and advertising could have been purchased for had the "client" bought it themselves (contract to eliminate ambiguity and risk).[citation needed]
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.[17]
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.
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]
When exchanging services, it’s important to remember that bartering is considered income. While you may be able to write off expenses you incur during the barter, you must claim the fair market value of the services you provided as income. For example, if you charge $60 an hour as a massage therapist, and you trade a one-hour massage for housecleaning services, you may have to claim the equivalent income. When you trade assets, you may even be responsible for tracking capital gains or losses. If you have any doubts or questions, consult the IRS website.
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.
As Orlove noted, barter may occur in commercial economies, usually during periods of monetary crisis. During such a crisis, currency may be in short supply, or highly devalued through hyperinflation. In such cases, money ceases to be the universal medium of exchange or standard of value. Money may be in such short supply that it becomes an item of barter itself rather than the means of exchange. Barter may also occur when people cannot afford to keep money (as when hyperinflation quickly devalues it).[15]

This sort of scenario was so undesirable that societies must have created money to facilitate trade, argues Smith. Aristotle had similar ideas, and they’re by now a fixture in just about every introductory economics textbook. “In simple, early economies, people engaged in barter,” reads one. (“The American Indian with a pony to dispose of had to wait until he met another Indian who wanted a pony and at the same time was able and willing to give for it a blanket or other commodity that he himself desired,” read an earlier one.)


Other anthropologists have questioned whether barter is typically between "total" strangers, a form of barter known as "silent trade". Silent trade, also called silent barter, dumb barter ("dumb" here used in its old meaning of "mute"), or depot trade, is a method by which traders who cannot speak each other's language can trade without talking. However, Benjamin Orlove has shown that while barter occurs through "silent trade" (between strangers), it also occurs in commercial markets as well. "Because barter is a difficult way of conducting trade, it will occur only where there are strong institutional constraints on the use of money or where the barter symbolically denotes a special social relationship and is used in well-defined conditions. To sum up, multipurpose money in markets is like lubrication for machines - necessary for the most efficient function, but not necessary for the existence of the market itself."[13]
Just as with most things, there are disadvantages and advantages of bartering. A complication of bartering is determining how trustworthy the person you are trading with is. The other person does not have any proof or certification that they are legitimate, and there is no consumer protection or warranties involved. This means that services and goods you are exchanging may be exchanged for poor or defective items. You would not want to exchange a toy that is almost brand new and in perfect working condition for a toy that is worn and does not work at all would you? It may be a good idea to limit exchanges to family and friends in the beginning because good bartering requires skill and experience. At times, it is easy to think the item you desire is worth more than it actually is and underestimate the value of your own item.
It’s hard to answer that without actually seeing a modern gift economy in action. Luckily, modern gift economies actually do exist. On a small scale, they exist among friends, who might lend each other a vacuum or a cup of flour. There’s even an example of a gift economy on a much larger scale, albeit one that’s not always in operation: The Rainbow Gathering, an annual festival in which about 10,000 people gather for a month in the woods (it rotates among various national forests around the country each year) and agree not to bring any money. Groups of attendees set up “kitchens,” in which they prepare and serve food for thousands of people every day, all for free. Classical economists might guess that people would take advantage of such a system, but, sure enough, everyone is fed, and the people who don’t cook play music, set up trails, teach classes, gather firewood, and perform in plays, among other things.
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.”
The eXmerce barter system is set up different than traditional barter. Instead of trading products or services directly with another business, you earn Trade Dollars when a member buys from you. You can then use those Trade Dollars to purchase hundreds of products or services. Whether it’s personal or for your business, there is so much to choose from within the eXmerce community.
When two people each have items the other wants, both people can determine the values of the items and provide the amount that results in an optimal allocation of resources. Therefore, if an individual has 20 pounds of rice that he values at $10, he can exchange it with another individual who needs rice and who has something that the individual wants that's valued at $10. A person can also exchange an item for something that the individual does not need because there is a ready market to dispose of that item.
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.
Throughout the 18th century, retailers began to abandon the prevailing system of bartering. Retailers operating out of the Palais complex in Paris, France were among the first in Europe to abandon the bartering, and adopt fixed-prices thereby sparing their clientele the hassle of bartering. The Palais retailers stocked luxury goods that appealed to the wealthy elite and upper middle classes. Stores were fitted with long glass exterior windows which allowed the emerging middle-classes to window shop and indulge in fantasies, even when they may not have been able to afford the high retail prices. Thus, the Palais-Royal became one of the first examples of a new style of shopping arcade, which adopted the trappings of a sophisticated, modern shopping complex and also changed pricing structures, for both the aristocracy and the middle classes.[18]
Put a price tag on it. Successful bartering must result in the satisfaction of both parties. This can only happen if the items bartered are realistically valued. If you have an item you would like to trade, obtain an accurate appraisal. An item is only worth what someone is willing to pay for it. Therefore, do your research and look at the "selling" section on eBay to find out what online buyers have paid for similar items.
Put a price tag on it. Successful bartering must result in the satisfaction of both parties. This can only happen if the items bartered are realistically valued. If you have an item you would like to trade, obtain an accurate appraisal. An item is only worth what someone is willing to pay for it. Therefore, do your research and look at the "selling" section on eBay to find out what online buyers have paid for similar items.
And that means everything from tuna to stamps to cigarettes has its own unique value in a trade and barter market. — Alexandra Cardinale, Vox, "Why ramen is so valuable in prison," 14 Nov. 2018 European officials were also looking at a barter system that would allow Iran to sell oil, for example to China, and use the proceeds from that sale to purchase goods or technology from Europe. — Laurence Norman, WSJ, "Europe’s Payment Channel to Salvage Iran Deal Faces Limits," 25 Sep. 2018 With unemployment around 9 percent and consumer prices surging, some Argentines are again turning to barter clubs, which first emerged during the collapse nearly two decades ago. — Almudena Calatrava, Fox News, "Argentines seek soup kitchens, barter markets amid crisis," 10 Sep. 2018 This particular search insired Gellar and Laibow to hop on the phone and barter. — Colleen Leahey Mckeegan, Marie Claire, "Sarah Michelle Gellar's Second Act? Disrupting the Food Industry," 18 Apr. 2017 Choco Pies became so prevalent for sale or barter on the streets that North Korea reportedly banned their import to Kaesong in 2014. — Brian Murphy, Washington Post, "The Choco Pie dividend: South Korean firms are drooling at the prospect of business in the North," 17 June 2018 In 1996, amid crippling famine, Ji tried to steal a few pieces of coal from a rail yard to barter for food. — Brian Murphy, BostonGlobe.com, "Could these outspoken North Korean defectors return home?," 11 June 2018 In 1996, amid crippling famine, Ji tried to steal a few pieces of coal from a rail yard to barter for food. — Brian Murphy, BostonGlobe.com, "Could these outspoken North Korean defectors return home?," 11 June 2018 Instead, like many early civilizations, they were thought to mostly barter, trading items such as tobacco, maize, and clothing. — Joshua Rapp Learn, Science | AAAS, "The Maya civilization used chocolate as money," 27 June 2018
But the harm may go deeper than a mistaken view of human psychology. According to Graeber, once one assigns specific values to objects, as one does in a money-based economy, it becomes all too easy to assign value to people, perhaps not creating but at least enabling institutions such as slavery (in which people can be bought) and imperialism (which is made possible by a system that can feed and pay soldiers fighting far from their homes).
In Canada, barter continues to thrive. The largest b2b barter exchange is Tradebank, founded in 1987. P2P bartering has seen a renaissance in major Canadian cities through Bunz - built as a network of Facebook groups that went on to become a stand-alone bartering based app in January 2016. Within the first year, Bunz accumulated over 75,000 users[29] in over 200 cities worldwide.
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