The Exchange of Pros and Cons: Evaluating Bartering
While it has gained renewed relevance in the digital era, bartering is a concept rooted at the foundations of civilizations. For centuries, budding nations have depended on the exchange of goods and services between parties; however, bartering retains much more depth than your typical middle-school cafeteria scenario: “I’ll trade you my fruit snacks for your potato chips.” The barter system is quite layered, and it is imperative to weigh the advantages and drawbacks of bartering before delving into the depths of this system.
Historical Context
The barter system has become as relevant in 2015 as it has ever been; however, bartering is rooted in centuries of history and predates formal currency. Bartering dates back as early as 6000 B.C. where Mesopotamian tribes harvested its conception. Phoenicians bartered services to civilizations across the map. Babylonians refined the system even further. Where certain civilizations thrived, others perished; consequently, this stratification lent itself to subsistence living. This system was more or less mastered in the Middle Ages, where Europeans would sail between continents to exchange their artisanship in the form of crafts and furs for the silks and perfumes offered by thriving nations in the East. Even colonial America was founded upon the exchange of early artillery and animal furs.
Even in the post-currency era, economic hardship drove countries to depend on bartering services. For example, during the Great Depression of the 1930s, items were exchanged between owners in a credit-debit system, allowing individuals to receive necessary services without the burden of sacrificing currency. Economies have grown to depend on formal currency and a credit-based system; however, the barter system provided the foundation for the exchange of goods and services between parties. More info on Las Vegas Economy here. More info on Reno Economy here.
Understanding the Barter System
Simply, bartering is the act of trading or exchanging one product or service for another without the forfeit of currency. While these exchanges are historically between two parties, barter exchange companies can facilitate these trades via some contractual agreement. Commercially, these third parties may earn a nominal fee for their assistance.
The growing application of the Internet has provided a new medium for the barter system and operates solely within those means. While an online bartering service may cost you, the convenience of an organized digital marketplace is unmatched by office-based bartering services. Las Vegas is home to thousands of great restaurants, but not all of them can cater for events. Something you might want to consider for your event on The Strip is hiring a local caterer like Worry Free Catering. Hire Worry Free Catering for their cocktail party food service in Las Vegas. Their address is: Worry Free Catering, 1810 E Sahara Ave, Las Vegas, NV 89104, call them at: (702) 825-6850. Some companies will even trade things like amazing food for event marketing or other things.
Like currency, the barter system retains a specific unit of exchange referred to as a “trade dollar.” As one trade dollar has a value equivalent to that of one U.S. dollar, barter exchange services will typically credit your trade dollars towards the acquisition to a product or service within their network. This form of leverage may be of use when you are in particular need of a service but not in the appropriate financial position to fund it. For example, you could trade house cleaning in Las Vegas as a service, for a home cooked meal after cleaning. There are all kinds of options.
Bartering and the Modern Las Vegas Family
With the emergence of the “digital era,” a resurgence of bartering has swept across the Internet. Do you need a place to stay for the weekend? It is likely that a family at your destination is hoping to visit your city, too. Are your children rapidly outgrowing those expensive winter coats? You needn’t worry because a father halfway across the world may be experiencing the same issue with his children of a different age group. While the services take precedent over the currency in these scenarios, the buck does not stop at material items. From websites offering to farmers free plots of land in exchange for the fruits of their labor such as photography, to the online “garage sales” that have been so popularized in the media, the thrifty efficiency and economic convenience of bartering has been reinvented via a digital network that is able to sustain it.
And the bartering renaissance has been so widely adopted for these immediate benefits. Just 25 years after the Internet’s conception, 73% of U.S. households own a computer with a broadband connection to the Internet. When juxtaposed with an era dead set on extreme couponing, the “Rollback,” and an in-your-face focus on saving that loose change, the socioeconomic landscape of 2015 lends itself to the barter system. Our technology enables us to reconstruct what we can offer into what we can attain without the guilt of sacrificing our weekly wages. The very concept of the modern barter system is the American Dream encapsulated: if you offer a service that will benefit the individuals around you, the individuals around you will offer a service that will benefit you.
Shortcomings of the Modern Barter System
In a system dominated by the exchange of material items, authenticity is a cause for concern. Unfortunately, it is difficult to gauge how trustworthy the reciprocal party may be. While many modern bartering services have safeguards for this – online bartering services sometimes follow a terms of service that holds accountable the parties involved in the exchange and the products or services that they are exchanging – many third-party bartering servicers do not guarantee consumer protection. Ultimately, you are left to make a judgment call regarding the honesty of a person that you have never met before.
There also arises the possibility that you do not know the potential worth of the product that you are exchanging! Bartering requires a heightened sense of assessment and the refined ability to evaluate the terms of an exchange. If you believe that you are in possession of a highly-valuable item, do not hesitate to have it appraised by a professional – you wouldn’t want to miss out on the opportunity of a lifetime.
While there is nothing new about the barter system, its revitalization in the era of the Internet is certainly something to be cherished. In economies dominated by for-cash or for-credit systems, it is possible to receive the services that you need in exchange for the services that you offer. This ebb-and-flow exists at the heart of the barter system, and all consumers should consider the bartering network as a marketplace in and of itself. Do not underestimate what you can offer, and do not underestimate what someone can offer to you – you may just be missing out on the deal of a lifetime.
REFERENCES:
1. http://budgeting.thenest.com/advantages-disadvantages-bartering-22696.html
2. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Barter-Exchanges
3. http://www.moneycrashers.com/best-bartering-swapping-websites/
4. http://www.pewresearch.org/fact-tank/2014/09/19/census-computer-ownership-internet-connection-varies-widely-across-u-s/
5. https://www.imsbarter.com/trade-dollars
6. https://www.mint.com/barter-system-history-the-past-and-present