Barter, the direct exchange of goods or services—without an intervening medium of exchange or money—either according to established rates of exchange or by bargaining. It is considered the oldest form of commerce. Barter is common among traditional societies, particularly in those communities with some developed form of market. Goods may be bartered within a group as well as between groups, although gift exchange probably accounts for most intragroup trade, particularly in small and relatively simple societies. Where barter and gift exchange coexist, the simple barter of ordinary household items or food is distinguished from ceremonial exchange (such as a potlatch), which serves purposes other than purely economic ones.
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.
Toronto’s online Freecycle network, where 27,000-plus members can give, and get, things for free, provides a variation on bartering. Last April, Toronto hosted one of its first gift circles, which, as the name suggests, encourage small groups to form gifting communities—groups of 20 that give and take from a pool of goods and services depending on their needs. Torontonians can also swap skills at justfortheloveofit.org, a freeconomy community that spans 174 countries. On the site, members share talents that range from useful (dog walking, yoga instruction, electrical work) to questionable (boycotting, ear candling, loving) to weird (tree whispering, culture jamming, puppet making). When it comes to alternative economies, the creative possibilities are vast, but they all speak to the same desire for something different—anything other than what we have.
While Swapsity trades are facilitated online, its participants can be seen in real life at themed in-person swap meets as well as the annual Live Green Toronto Festival. Over the past three years, more than 25,000 items—primarily clothes, books, CDs and DVDs—have been swapped at its events, collectively saving people roughly $200,000. About 5,000 items have been donated to charity. On average, each participant saves $80 at every swap (the value of items they go home with and would have otherwise bought). This year’s Live Green event was packed despite the grey July weather: until it started to rain heavily in the late afternoon, lineups to get into the six swapping tents spanned the full length of the waiting area, then folded in on themselves like accordions. Even in the rain, the leaking tents bustled.
David Graeber argues that the inefficiency of barter in archaic society has been used by economists since Adam Smith to explain the emergence of money, the economy, and hence the discipline of economics itself. "Economists of the contemporary orthodoxy... propose an evolutionary development of economies which places barter, as a 'natural' human characteristic, at the most primitive stage, to be superseded by monetary exchange as soon as people become aware of the latter's greater efficiency." However, extensive investigation by anthropologists like Graeber has since then established that "No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money; all available ethnography suggests that there never has been such a thing. But there are economies today which are nevertheless dominated by barter."
He would have heard of channels and sandbanks, of natural features of the land useful for sea-marks, of villages and tribes and modes of barter and precautions to take: with the instructive tales about native chiefs dyed more or less blue, whose character for greediness, ferocity, or amiability must have been expounded to him with that capacity for vivid language which seems joined naturally to the shadiness of moral character and recklessness of disposition.
LITE VERSION - This version does not require SKSE or SkyUI. It does not include the changes to the barter settings, merchant respawn times, or the VendorGold lists. When installed, this version will activate automatically and uses the mod defaults for its settings. Please refer to the included README for full description of what is and is not included in this version.
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. 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.
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).
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.
“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.