Barter System?

Question

Hello, thanks for taking the time to drop by my question.
How about we all just go back to the barter system?!?!? Ditch money and trade for what we want and need. Everyone wants what the other has and it just seems to me that it would make life much simpler. Ya want a steak and the cow owner wants carrots so you trade. You want gas and the gas man wants eggs. You want a car and the person with the car wants a computer. What is so wrong with the barter system? Is it easier to deal with paychecks and bills or using the barter system

Answer 1

I would personally love a barter system on a small scale, which in the US (is that where you are?) is kind of what we have. It happens everyday. But not as a means of all economic activity.

The purpose of currency is to give a standard against which the value of other things is measured. With currency, especially with commodities markets, you have a common amount (may not agree with it) of what something is worth, so you don't go trading off a cow for a bag of apples.

It helps when you are dealing with a lot of supply and demand because two people can't always help each other. It may be a very complicated circle of exchanges. This is why currency is helpful, in that everyone can appreciate it. You don't have to look for that one guy that needs what you have and has what you need. If you use money instead, then you can trade the money to whomever can meet you need...which in turn, the seller uses to get what they need.

The exception here is if everyone is in the same place at the same time, but everyone with all their crap to trade would be a pretty big chaotic affair, even in a small town. If you have ever studied up on ancient civilizations, you know this. The marketplace was one gigantic zoo...and that is why currency came into use.

Currency also helps the both the consumer and the seller because they don't have to count their financial worth in beans or cows or whatever. Not that it matters...wealth as a number is more of a social thing than anything, as well as a way of measuring credit. However, I personally would NOT want to be worth a hundred cows, because I wouldn't want to OWN a hundred cows. They won't fit in my pocket as easily as a few bills or a check from selling my cows. hahaha! Joking but that is essentially the point. You may argue that instead of being worth a hundred cows, I might instead, having traded some cows, be worth 40 cows, 3 horses, 10 bushels of corn, 40 bushels of animal food, and 17 bushels of apples and wheat, and 12 dozen eggs...and otherwise get what you need due to having stuff to trade. But still.

Small scale bartering, though, I am very very interested in, and I do it whenever I can. For example, my mother died in December and she was a real packrat. She was sick and I lived here with her to help out. I have since traded her bed and dresser for an entertainment center with the neighbor who wheels and deals like this all the time.

Another way people do this is trading favors. I will pick up your kid today if you pick up my kid tomorrow. Or I will mow your lawn if you weed my garden.

Lots of parents have swap meets for things like kids clothes, baby gear, halloween costumes, books, videos, etc. and other household stuff. These are usually within a circle of friends or neighbors.

The primary way that barter happens is in the family. Lots of families have some sort of trading going on within them. I will earn the money and you take care of the kids. I will do the dishes if you cook the dinner. I will take you for ice cream if you clean your room.

So barter systems are out there if you recognize them. Just doesn't work so well when there are too many people involved.

Answer 2

Barter system is now organised in a very modern and practical way.
For five years, I owned and managed a barter network of 4000 members. The members were very happy, because their business had great benefits from the system. It does not replace cash sales, but it increases overall sales and cuts on cash payment.
The only glitch was the inflation of prices caused by some of the members abusing the system. Therefore administering the system must be very efficient and tight.
The financial reward from managing this system is very satisfactory.

Answer 3

It wouldnt really matter...we'd still have the commodities that are in high demand making the producers richer (or lazier), or the products that are not in demand.

We'd still be in the same situation as today...

Answer 4

Get out of the stone age

Answer 5

what if I don't have any carrots, but still want stake.