Consumer-based barter systems aren’t the only trade in town, either. In the GTA, there is a robust business-to-business barter system, similar to wir but on a smaller scale. Businesses sign up for a service—there are several available—and trade unbilled work hours or dust-covered inventory for goods and services they couldn’t otherwise afford, especially during recessionary times: often things that attract top talent and retain big clients, such as advertising, promotional gear or client perks.

In a small economy where individuals specialize in trades, they may find the process of setting up a centralized currency and maintaining it an unnecessary burden in order to trade. One option may be to use a commodity to exchange value between parties that want to trade goods or services and this is why gold and silver have been useful forms of currency in many cultures and times. Another option may be to use a barter system to trade.
Trade did occur in non-monetary societies, but not among fellow villagers. Instead, it was used almost exclusively with strangers, or even enemies, where it was often accompanied by complex rituals involving trade, dance, feasting, mock fighting, or sex—and sometimes all of them intertwined. Take the indigenous Gunwinggu people of Australia, as observed by the anthropologist Ronald Berndt in the 1940s:
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.
No, said Mises, for if taken back far enough, there comes a point at which money first emerges as a medium of exchange out of a pure barter economy Prior to this, it is valued only for its non-monetary uses as a commodity The demand for money is therefore pushed back to the last day of barter, where goods are traded only in direct exchange, and where the temporal element of the regression theorem ends It is in this way that all charges of circularity are obviated.
Inevitably some people may feel like they were taken advantage of. One way to diminish inequities is to engage in dollar-for-dollar trades. For example, if you would like to trade your housecleaning service for someone’s couch, try to break down the goods and services to the dollar amount. If the two of you decide that the value of the couch is worth $200, why don’t you supply a gift certificate for $200 worth of housecleaning services? It’s a wise course and ensures all parties know what they are getting and what they are offering.
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
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]
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]

Some entrepreneurs are already taking the principles of swapping—use everything and anything you already have to survive—to create another offshoot system, one that turns a hefty profit. Called the sharing economy, it is perhaps best exemplified by Airbnb, a service that enables people to rent out their apartments like hotels. Other sites let you turn your driveway into a parking space, your car into a taxi and your tools into a rental service. Forbes estimates revenue flowing through the U.S. sharing economy will hit $3.5 billion by the end of 2013, and maybe more. It’s worth mentioning that some business associations and government members are terrified of this rise: like most alternative economies, it’s largely tax-free.
Bartering is the process of obtaining goods or services by direct exchange without the use of currency. In times of economic instability or currency devaluation, it can be a great way to ensure the flow of necessary items and services into your household without using precious funds. Historically, face-to-face exchanges between familiar parties were most common, but the Internet has opened up a new medium for bartering opportunities for both person-to-person exchanges and third-party facilitated transactions.
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.[17]
In Spain (particularly the Catalonia region) there is a growing number of exchange markets.[20] These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed.[21]
Since the latest series of worldwide economic meltdowns, people have bartered in growing numbers. Last year, the 100 members of the International Reciprocal Trade Association, a network of barter and trade exchanges, facilitated the bartering of billions of dollars’ worth of goods and services around the world. (The IRTA uses its own barter currency called Universal Currency.) In some areas of Greece, bartering has become as second nature as paying for things with cash—there’s even a new barter-style currency called the TEM, accrued through offering goods and services via a vast online network and regular open-air market days. Spain’s time bank system, in which people exchange hours of labour instead of units of currency, has grown exponentially as a result of the country’s crippled economy. 

Anthropologists have argued, in contrast, "that when something resembling barter does occur in stateless societies it is almost always between strangers, people who would otherwise be enemies."[6] Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalisticly 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.[4][7] 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.[8] 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.[9]
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.
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.
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.
In Spain (particularly the Catalonia region) there is a growing number of exchange markets.[24] These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed.[25] 

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.
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]
Automotive Businesses for SaleBars for SaleBanquet Halls for SaleBurger Restaurants for SaleBeauty & Personal Care Businesses for SaleConstruction & Landscaping Businesses for SaleConvenience Stores for SaleCoffee Shops for SaleDine-In Restaurants for SaleDry Cleaning Businesses for SaleFast Food Restaurants for SaleGas Stations for SaleGrocery Stores for SaleHealthcare & Medical Businesses for SaleHotels & Motels for SaleRestaurants for SaleRetirement Homes for SaleSandwich & Sub Shops for SaleSports Bars for SaleVending Businesses for Sale
Yet after three years with the firm, she was dissatisfied. She was spending all her time advising millionaires when she wanted to work with average Torontonians, especially women. She couldn’t help noticing that most of her female friends were broke, confused and floundering. Online, her social media feeds were filled with panicky talk of recession budgets and empty wallets. There was one problem: those women couldn’t afford to pay her, and she certainly couldn’t afford to work for free. “I really wanted to do it,” she says, “but I couldn’t figure out a business model.”
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.
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.
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.[22] 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.
Yet after three years with the firm, she was dissatisfied. She was spending all her time advising millionaires when she wanted to work with average Torontonians, especially women. She couldn’t help noticing that most of her female friends were broke, confused and floundering. Online, her social media feeds were filled with panicky talk of recession budgets and empty wallets. There was one problem: those women couldn’t afford to pay her, and she certainly couldn’t afford to work for free. “I really wanted to do it,” she says, “but I couldn’t figure out a business model.”
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