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Barter Trade - Good or Bad?





rshanthakumar
Barter trade was dead; may be I should say is dead. But we find new bartering business coming up on the net. How effective are these barter systems and in what way they are adding value to the work being done. How effective are these and are they making things easier and life more enjoyable?

One final question. Is there any one out there who thinks Barter has made him or her succesful?

Regards
risuarez
Please excuse my ignorance but..What is a Barter?
The Conspirator
Trading one item or items for another item or items.

I don't see anything wrong with it.
Soulfire
I don't see how it would be bad, it's just outdated by today's standards is all.
risuarez
could somebody please give me a link of a barter trade website so I can see for my self how it is done???
badai
it's not dead yet. a lot of places still use barter, like in my country, we traded cows for timber. in fact among countries still use barter, then contra with dollar, euro, yen or whatever if the value is not the same.

some countries even barter goods with technologies like north korea and pakistan where north korea provide goods and pakistan pay with knowledge to develope nuclear power plant.
bogger
Well, bartering is really an effective way of trading in my opinion, I think it would be easier for me to link:

http://en.wikipedia.org/wiki/Medium_of_exchange

you need a coincidence of wants for bartering, i.e. he wants A, you have A, you want B, he has B, you swap

With a currency, it's a LOT easier:

he wants A, you don't want B, he gives you money for A, and you go off and buy whatever you want (let's say C!). It's just more effective, another advantage of currency is:

Store of value!(to be said in deep booming voice)

with food, for example, if you don't sell it, it goes off, thus becoming useless, you can keep money forever!
picsite
I think the only reason barter is dead is because of the unefficiency. For example take trading cows for chickens. haha imagine that anywayz, what if someone only wants one chicken for dinner but the cow he's gonna be trading is worth 10 chickens. He will have no choice but to trade for 10 chickens, however, if there was an intermediate medium of exchange "money" then the one dude could sell his cow for a "cash" value and then buy just one chicken. That is the reason why bartering went dead in the first place.
corey
That idea works in a way. This is a simple look at a trade at the same time for quantity. If the person with the cow was happy with one chicken for his cow, then the barter is acceptable. If it was for sevceral chickens and he wanted only one, he could barter his extra chickens for other goods he needed. He could also barter the cow for a steady supply of chickens over time. There are many possibilities.

Barter seems to show up when prices rise for goods quickly. For example, in Canada, when the GST (goods and services tax) was introduced to replace the other taxes on goods and services, it applied to many more products and services and throughout several levels, thus increasing prices for a lot of things. An underground barter economy developed because of it, to avoid the added cost of the tax. Its harder to tax the trade of goods.
zjosie729
I think barter is okay. Sometimes it's not exactly a good deal. For example, someone trades a volleyball for a basketball. The one getting the volleyball thinks that it's not a good deal, while the one giving the volleyball thinks that he's giving away a great deal just for a baskball. So it's not exactly fair.
TrueFact
barter depends in the first place on the agreement of both sides on the deal thus each of them needs the other's goods. And if take a look to history bartring made whole communities and societies for long times. Farmers traded with blacksmithes, nobols traded for soldiers and weapons and so on. Yes sometimes it was not fair for the farmers and low class people in general when compared to the nobols and high class people but it's still built those communities. Nowadays, Money made it easier and much much easier for us and as picsite said. Using money you will buy (trade your currncy) with the products and goods you like and buy the quantity you need no more (if you have the right amount of money of course) but if we take a look at the history of money you'l find it it's another bartering system cuz every penny you have in your wallet as a paper you'll find it represinting your share of national amount of gold in your countries central bank.

Sometimes we have to look to the reality of money. Money can make some people rich and others poor but if you count the whole amount of money in the whole country you live in you find that the total of this money is ZERO. YES RIGHT ZERO. Your boss in your company have to pay at the end of the month and you have to pay your bills .... etc... see the point. Money made some people rich and others poor but it never effects the national commerce for the country cuz countries deal with gold not currncies. Each currency has it's value according to the amount of gold held in that country's central bank and countries deal with each other they just deal with gold in the shape of currency but later time they send the gold.

I guess i was a little away from the subject but it just to came up to me to write what i know about money and how people deal with it (specially at the present time when money have no physical shape - using credit cards for example) and how countries deal with it. Sorry if i took a long portion of your time.
rshanthakumar
zjosie729 wrote:
I think barter is okay. Sometimes it's not exactly a good deal. For example, someone trades a volleyball for a basketball. The one getting the volleyball thinks that it's not a good deal, while the one giving the volleyball thinks that he's giving away a great deal just for a baskball. So it's not exactly fair.


I think barter by itself could be very useful in terms of service trading and might turn out to be effective only if there are some such things like barter tokens in case of goods / commodities. I find that most of the sites offer both services and goods for exchange of barter points.
bogger
rshanthakumar wrote:
there are some such things like barter tokens in case of goods / commodities


Call me ignorant...

What are barter tokens?
ralphbefree
When thinking of a barter system we must think beyond our current concepts of social reality. When one neighbor wants a chicken in trade for a cow the value should not be weighed on individual value of the meal. Rather how about we eat my cow this week and your chickens next week? A barter system tends to create a communal society rather than a capitalistic system.

A commune or village can easily sustain itself by sharing it's resources with it's immediate members, but there are goods that the commune or village can not produce because of inhibitating land resource factors; also known as comparitave advantage. for example our commune can produce chickens and cows but the land sucks for growing bannanas and strawberries. But if our commune had good relations with another commune that did produce bannanas and stawberries we could make a trade or barter.

so i would say that i like the idea of a barter system since it creates a more peaceful society that relys more upon the land rather than debt-backed currency.
rshanthakumar
bogger wrote:
rshanthakumar wrote:
there are some such things like barter tokens in case of goods / commodities


Call me ignorant...

What are barter tokens?


In some of the web sites that do bartering, you can sell your goods and they give you barter points or barter tokens. You can exchange these barter points to other commodities or article. This works more or less like the currency system. Only difference is that there is a lack of any gold backed or debt backed working. Instead this is trust backed which is not as dependent as the others.
The Conspirator
So its not really bartering. Its using some websites currency to buy and sell.
OutwardBound
I love barter trade very much Exclamation It is because I've just "earn" several hundreds US$, by exchange a series of books with a mp3 player Exclamation Very Happy Very Happy
I'm now finding another exchange, let me earn more "secret money"! Exclamation Laughing Laughing Laughing Laughing Very Happy
drag0n
I like bartering in RL. Bartering over the internet removes the interaction crucial to clasical bartering, the person you are trading with can't be infulenced by you over the net in such way like he could be in real life. Also bartering in RL is quicker (you have to be very VERY patient to barter over the internet) and safer (what you see is what you get).
deStructuralized
Bartering is incredibly convenient but will probably never catch on in mass appeal. People like cash, even though cash has no inherent value. The idea of a stable unit of currency (as unstable as it is) seems to give people a sense of security.

I agree with Conspirator, barter tokens aren't the same as a barter system, they represent an independent form of currency, whether backed by government debt or not. Kind of like arcade tokens...both can only be used in certain locations.
caroline
bartering is a good form of trade - inflation would not be a problem with barter trade. Also, there are fewer resources necessary to barter - minting money costs money!
deStructuralized
I'm not sure about inflation, but that's an interesting point.

If we're talking about bartering on a small scale, then it's possible that inflation wouldn't be a factor. But a system purely reliant on bartering will probably involve some natural fluctuation in trade value for certain products due to supply and demand. That's my thought, not sure though.
joshumu
The effectiveness of barter depends on the environment. At the rainbow gathering you can take some chocolate and tobacco and trade it for something, then that for something else and so on until you have something that you want, and everyone else has something they want. With $20 in chocolate and tobacco and a few days of bartering, I ended up with a tent, some books, and a few stone and crystals that I went on to sell for $100. Not to mention its fun to barter.
insanesnoopy
I think that barter and trade can be a very strong alternative to businesses that are looking for outsourced help without the budgets.

I will caution that these agreements be in writing and follow the same guidelines that you would use to price.

Meaning that there should be a commitment that spells out exactly what someone gets for what.

Cheers
rshanthakumar
insanesnoopy wrote:
I think that barter and trade can be a very strong alternative to businesses that are looking for outsourced help without the budgets.

I will caution that these agreements be in writing and follow the same guidelines that you would use to price.

Meaning that there should be a commitment that spells out exactly what someone gets for what.

Cheers


True. Many times barter fails because what we produce we don't respect much. Our commitments donot get maintained properly. this makes it a failure. If both were to honor their commitments as they would do any other financial transaction, then the whole thing would go through comfortably.

Anyone who is going to try bartering? All the best..
Cool
OutwardBound
'Frihost Post' wrote:
I think that barter and trade can be a very strong alternative to businesses that are looking for outsourced help without the budgets.

I will caution that these agreements be in writing and follow the same guidelines that you would use to price.

Meaning that there should be a commitment that spells out exactly what someone gets for what.

Cheers

That's true, but I want to say barter trade can't make sure that you can always get what you want the best Exclamation Some of these goods may be out of stock , rare and just noone have got it. Also the chance of exchanging what both traders want is always rare. So barter trade is just a kind of commitment that spells out what somebody may accept Idea
rshanthakumar
Can anyone tell me any active barter trade sites on the net?
elizajade3
Bartering is the way to go. If you think about it - people do it everywhere, all the time, and don't even realize they're doing it. It is very "basic" compared to what would be called "normal routine" in this day and age. Maybe it is so "basic" that we as people just don't want to accept it.
What would happen if the federal government just stopped circulating and making money? Well, there would be the people that have HUGE bank accounts - and then there would be the people that don't have huge bank accounts. Just a guess, but I would assume that the majority of the people today DON'T have huge bank accounts. So that would leave us, the majority, left to barter with what we have. That's absolutely fine with me. Maybe you don't have what I'm willing to trade for -- but I can almost certainly say there is someone somewhere that does. What consists of a fair trade? All people on all ends being happy. If you don't like what the other person is willing to trade for, then don't trade.
Zeusik
Barter is not very effective - you have to find person which posses exactly what you would like to have and he should desire your goods. There is more easily just sell and then buy from the other person even in era of internet.
But barter was one big advantage in era of socialists countries. There is much harder to put taxes on barter. In my country taxes for barter exist but who coulc really check it this barter or only gift.

So fight with system, fight with bureacracy, which give itself law to stealing you. Bartered it !!
bogger
Of course, why pay tax at all if you have that attitude

Bartering is thus a simple means to avoid being a good citizen, yes?

So, I would say that bartering is merely a sign of a capitalist society, in which people screw everyone else by not paying their taxes, which is going to have to be paid by someone you know, most probably you, so in reality, you're just changing tax from VAT to income tax
mawia
Through the evolution of mankind the monetary system has naturally replaced the barter system. In international trade and also in some remote areas of the world the barter system has been still practiced. In modern times Barter system is inconvenient in many respect.

First, barter needs at least two people whose wants coincides e.g. if I have a cow and needs a shoe i have to find a person having shoes who needs an a cow. This situation would be rare.

Second, there is difficulty of sub-division. I cannot sub-divide the cow to be exchanged with the shoe.

Three, under barter there is no common measure of value. It is difficult to agree upon how much of a cow would exchange for a shoe.
HereticMonkey
Barter can actually be pretty efficient; I've worked a few places where barter can seriously do some damage. It's good for beginning newspapers, where you can trade adspace for goods; admittedly, you have the crutch of being able to determine fair value, but it can be nice...

And then there's that guy that started with a red paperclip...

HM
pjbefree
I think bartring is a good way to save money. Times are difficult for a lot of people right now. I am completely open to new ways of surviving. I don't even just swap the things I want (which is always nice to do), but also the things I need. I don't even have to pay for groceries anymore. My neighbor buys the food and I cook it. I don't have to pay for food and she doesn't waste all her money eating out. It's great! I have recently found two websites that are pretty good:

www.simplebartering.com
and
www.u-exchange.com

I hope this helps! Laughing
standready
I still see a lot of bartering (trading) going on. I do it when I can.
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