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[citation needed]. 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.[3]
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]
Still, Adam Smith really did seem to believe barter was real. He writes, “When the division of labour first began to take place, this power of exchanging must frequently have been very much clogged and embarrassed in its operations,” and then goes on to describe the inefficiencies of barter. And Beggs says that many textbooks sloppily seem to endorse this viewpoint. “They sort of use that fairy tale,” he explains.
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."[19] 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 IOU 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.
Unlike one-on-one bartering, members of exchanges are not obligated to barter or purchase directly from a seller. Instead, when a barter exchange member sells a product or a service to another member, their barter account is credited for the fair market value of the sale. When a barter exchange member buys, the account is debited for the fair market value of the purchase.
If you don’t want to pay a membership fee but you’re looking for a free place to stay when you’re on the road anywhere in the world, CouchSurfing may be your new best friend. CouchSurfing is a non-profit organization, so they don’t charge you for using the site. They don’t allow hosts to charge travelers either. With almost 3 million members in 246 countries, chances are there is a free couch out there waiting. CouchSurfing also has an extensive safety section on the site, including references, vouching, and verification from other couchsurfers and hosts alike.

Barter, also known as counter-trade, is an accepted practice that makes trading more convenient for nations that have difficulty with currency conversion, as well as for nations with fewer financial resources but sufficient commodities. For example, if a country produces plenty of rice, that country may exchange it with another nation to acquire another type of grain, or fruits and vegetables. On the other hand, one country might trade foodstuffs for textiles or oil.
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.
Anthropologists have argued, in contrast, "that when something resembling barter does occur in stateless societies it is almost always between strangers."[6] Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalistically explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit.[7][8] Marcel Mauss, author of 'The Gift', argued that the first economic contracts were to not act in one's economic self-interest, and that before money, exchange was fostered through the processes of reciprocity and redistribution, not barter.[9] Everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial "communism" where each takes according to their needs, and gives as they have.[10]
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]
Could you imagine having to barter for food and medicine for your kids?  This is something that most Americans today can’t even wrap their heads around.  Many will say that “it couldn’t happen here.”   I highlighted some of the pain that Venezuelan’s were going through in this article, “This is Why We Prep! This is Why We Stay Aware!.”  Make sure you watch the embedded video.  That video is heart-wrenching!  If you have kids, it will be enough to get you to rethink your preps!
Search for bartering partners. After you know what you have to offer and exactly what you need/want in a barter situation, find a bartering partner. If you don't have a specific person or business in mind, try word of mouth. Let your friends, colleagues and social network know about your specific need and what you want in a barter situation. Use Facebook, LinkedIn and Twitter.
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]
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]
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[citation needed]. 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.[3]

A place to exchange your books with other members, Bookins says that they have “more available books than the largest Barnes & Noble.” Best of all, there are no membership charges or fees to speak of. Bookins arranges all the trades for its users, so members never have to contact each other at all to set up swaps. Sending items is free of charge, while receiving an item costs $4.49.


Can you teach a skill like canning or cooking from scratch?  Food staples will be more readily available than the processed food many are used to buying at the grocery store and fast food.  And although many in the preparedness community know how to can and cook from scratch, your common everyday American doesn’t.  They wouldn’t know what to do with flour, eggs, and a little oil.

Kids sure do grow out of their clothes rather quickly, and that’s where ThredUP comes in. They set up a cool shop for parents to swap clothing and toys with other parents whose kids are different ages. You can pick up a box full of clothes or toys for just $5 plus shipping, or post your own child’s used clothing for other users to pick from. Membership is free for everyone.


Barter exchanges have their own unit of exchange, usually known as barter or trade dollars.  Trade dollars or barter dollars are valued in U.S. currency for the purposes of information returns.   Trade dollars allow barter to take place between parties when one party may not have a simultaneous need or desire for the goods or services of the other members.  Barter exchanges act as the bookkeeper for keeping track of trade dollars that participants accumulate. Earning trade or barter dollars through a barter exchange is considered taxable income, just as if your product or service was sold for cash.
The Internet has provided a medium for new growth in the bartering industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B.pdf, Proceeds From Broker and Barter Exchange Transactions, for all transactions unless an exception applies. Refer to Bartering in Publication 525, Taxable and Nontaxable Income, and the Form 1099-B Instructions, for additional information on this subject. Persons who don't contract with a barter exchange or who don't barter through a barter exchange but who trade services, aren't required to file Form 1099-B. However, they may be required to file Form 1099-MISC.pdf, Miscellaneous Income. Refer to the Form 1099-MISC Instructions to determine if you have to file this form. If you exchange property or services through a barter exchange, you should receive a Form 1099-B. The IRS also will receive the same information.
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]
You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C.pdf, Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ.pdf, Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X.pdf, Amended U.S. Individual Income Tax Return. Refer to Topic No. 308 and Should I File an Amended Return? for information on filing an amended return.
Stop lugging around old books you won’t read again and trade them for some new reading material instead. Bookmooch uses a points system, so you’ll enter the books you want to give away, get requests from members who want your books, ship from home, get points, and then spend the points on the books you need. While membership is free, you’ll receive .10 points for every book you make available and 1 point for every book you successfully give away. To remain in good standing, you need to give away one book for every two you receive.
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).
While it may be free, there is no one monitoring the barter ads, so you must be aware of potential Craigslist scams, and realize that you are always at risk when it comes to meetups and exchanges. For example, about a year ago, I arranged to trade massage gift certificates for housecleaning. Since the individual was coming to my home, I was more nervous than usual. However, she offered good previous references, and we  arranged for a time to meet when my husband would be home, in case an odd, unexpected, or even dangerous situation arose.

Barter exchanges have their own unit of exchange, usually known as barter or trade dollars.  Trade dollars or barter dollars are valued in U.S. currency for the purposes of information returns.   Trade dollars allow barter to take place between parties when one party may not have a simultaneous need or desire for the goods or services of the other members.  Barter exchanges act as the bookkeeper for keeping track of trade dollars that participants accumulate. Earning trade or barter dollars through a barter exchange is considered taxable income, just as if your product or service was sold for cash.
Barter exchanges have their own unit of exchange, usually known as barter or trade dollars.  Trade dollars or barter dollars are valued in U.S. currency for the purposes of information returns.   Trade dollars allow barter to take place between parties when one party may not have a simultaneous need or desire for the goods or services of the other members.  Barter exchanges act as the bookkeeper for keeping track of trade dollars that participants accumulate. Earning trade or barter dollars through a barter exchange is considered taxable income, just as if your product or service was sold for cash.

Especially prior to the Christmas holiday season, a gift and craft exchange can take the pinch out of your budget. Contact people within your network and arrange a day where people exchange homemade holiday decorations. You may not find everything you’re looking for, but you will likely find at least a few stocking stuffers – and the perfect price.


An online swap meet of sorts, at Swap.com there is no bidding or money exchanged. Rather, you offer to trade the stuff you no longer want. You’ll then have the ability to choose from books, movies, CDs, and other items. The site doesn’t seem to have monthly charges, but you’ll be responsible for shipping costs associated with items you sell. Swap has its own free iPhone app for simple listing and searching.
Communities of Iroquois Native Americans, for instance, stockpiled their goods in longhouses. Female councils then allocated the goods, explains Graeber. Other indigenous communities relied on “gift economies,” which went something like this: If you were a baker who needed meat, you didn’t offer your bagels for the butcher’s steaks. Instead, you got your wife to hint to the butcher’s wife that you two were low on iron, and she’d say something like “Oh really? Have a hamburger, we’ve got plenty!” Down the line, the butcher might want a birthday cake, or help moving to a new apartment, and you’d help him out.
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]
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 troubles that the people of Venezuela are going through are horrible and in all reality, really shouldn’t be happening.  Venezuela has a tropical climate and is an oil producing country. They should at least be growing their own food in the countryside.  This would help those who are starving.  But those in power, the elite, don’t care about the common people and make it hard on them at every turn.  While the elites have access to the food, medicine and all the power they want from their electric grid, the common people have had to make due with what they can scrounge.

I wish I came up with this fantastic idea. SharedEarth is a free site that connects landowners with gardeners and farmers in need of space to grow crops (i.e. starting a home vegetable garden). You can find free access to land in exchange for sharing a little bit of produce with the landowner. In a time of a strong and growing local food movement and concerns about food safety, SharedEarth might just be the most important sharing site of all!
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]

In recent years, barter has enjoyed a resurgence as a means of countering economic insecurity, unemployment and worker exploitation. The nature of modern-day work, the pervasiveness of the Internet and the rise of social networking have all contributed to its spread. Other examples of alternative economic systems include gift economies, sharing economies and time banks.
If you need more than clothes, like baby bedding, baby furniture, or even sporting goods, you’ll be glad to find Zwaggle. It’s a network of parents who have joined together to share the expense of getting “new to your family” stuff in exchange for used or no-longer-needed items. You receive Zwaggle points for giving away your things, and you can use those points to get the things you want. Membership is free, and the community is powered by a points system rather than cash. The only money you have to spend is on shipping.

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.
I wish I came up with this fantastic idea. SharedEarth is a free site that connects landowners with gardeners and farmers in need of space to grow crops (i.e. starting a home vegetable garden). You can find free access to land in exchange for sharing a little bit of produce with the landowner. In a time of a strong and growing local food movement and concerns about food safety, SharedEarth might just be the most important sharing site of all!
To try a time bank, search online for one in your local area using TimeBanks.org. How time banks are managed varies according to the region, so it is important (and often mandatory) to attend an initial meeting that explains the general rules of your local chapter. Once you do this, you’re ready to start trading away. Your services and contacts are identified through the local time bank website.

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).
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.
Can you teach a skill like canning or cooking from scratch?  Food staples will be more readily available than the processed food many are used to buying at the grocery store and fast food.  And although many in the preparedness community know how to can and cook from scratch, your common everyday American doesn’t.  They wouldn’t know what to do with flour, eggs, and a little oil.
Business-to-business barter often includes merchandise or services in exchange for advertising. A company may supply promotional items or a service for a TV, radio station or newspaper, and in return receive a set amount of airtime or a certain number of print ads. Other examples include trading advice for goods, or trading merchandise or services for stock.

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.
Similar to Zipcar but owned by car rental company Hertz, Connect by Hertz focuses on car sharing services on or near college campuses around the world. Membership is free, and hourly rental rates start at $6.80, which includes gasoline and insurance. Again, for those of you who rarely need a car of your own, a car sharing service could save you a bundle over the costs of ownership.
Then again, it’s one thing to keep a community alive and well when everyone’s camping in a forest and they’ve all opted in to that vision. It’s quite another to imagine a gift economy enabling humans to build skyscrapers, invent iPhones, put air conditioners in every house, and explore space. (The same goes for collecting taxes and running large businesses.) Not that it’s an all-or-nothing situation: We already have gift economies among friends and family. Perhaps expanding that within small communities is possible; it’s certainly desirable.
Whether or not one agrees with such broad claims, it’s worth noting that monetary debt, a byproduct of currency, has regularly been used to by some groups to manipulate others. Thomas Jefferson, for instance, suggested that the government encourage Native Americans to purchase goods on credit so they’d fall into debt and be forced to sell their lands. Today, black neighborhoods are disproportionately plagued by debt-collection lawsuits. Even after taking income into account, debt collection suits are twice as common in black neighborhoods as in white ones. $34 million was seized from residents of St. Louis’ mostly black neighborhoods in suits filed between 2008 and 2012, much of which was seized from debtors’ paychecks. In Jennings, a St. Louis suburb, there was one suit for every four residents during those years.

Barter exchanges have their own unit of exchange, usually known as barter or trade dollars.  Trade dollars or barter dollars are valued in U.S. currency for the purposes of information returns.   Trade dollars allow barter to take place between parties when one party may not have a simultaneous need or desire for the goods or services of the other members.  Barter exchanges act as the bookkeeper for keeping track of trade dollars that participants accumulate. Earning trade or barter dollars through a barter exchange is considered taxable income, just as if your product or service was sold for cash.


Some businesses that may not directly barter with customers may swap goods or services through membership-based trading exchanges such as ITEX or International Monetary Systems (IMS). By joining a trading network (which often charges fees), members can trade with other members for barter "dollars." Each transaction is subject to a minimal fee; the exchange facilitates the swap and manages the tax components of bartering such as issuing 1099-B forms to participating members. You may find a nearby exchange through the International Reciprocal Trade Association (IRTA) Membership Directory. Before you sign up and pay for a membership, however, make sure that members offer the types of goods and services you need. Otherwise, you may find yourself with barter money or credit that you cannot use.
Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world. Businesses in a barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members utilizing their trade credits – they are not obligated to purchase from those whom they sold to, and vice versa. The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both. Transaction fees typically run between 8 and 15%.
Companies may want to barter their products for other products because they do not have the credit or cash to buy those goods. It is an efficient way to trade because the risks of foreign exchange are eliminated. The most common contemporary example of business-to-business barter transactions is an exchange of advertising time or space; it is typical for smaller firms to trade the rights to advertise on each others' business spaces. Bartering also occurs among companies and individuals. For example, an accounting firm can provide an accounting report for an electrician in exchange for having its offices rewired by the electrician.
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