Feb 12 2009
The Barter Economy: Spending Less and Gaining More
Most macroeconomists would scream bloody murder if they were to read this article. What the economy needs is for you to get out there and spend more money! they proclaim loudly, neglecting to wonder (or care) whether or not you even HAVE the money to spend. So lets be frank; most of us are not economists and are far more concerned with paying the electric bill and still getting little Johnny those new boots he needs than with GDP or the rate of productivity. We didn’t ask to be a part of a fragile, global economic system, but we do have to live with the consequences of its times of despair and pay the same bills whether it thrives or not. Outlined here is one great way to save money in times of economic turmoil.
The barter economy refers in general to the exchange of goods or services outside of the monetary economy, that is, without the use of a money medium. The range of the various exchanges so mentioned is staggeringly broad and includes the trading of baseball cards between young boys, the snow shoveling a neighbor might do for someone too elderly to manage on their own, a carpool program with co-workers, a babysitting or child care exchange you might have with a friend, and much more.
The barter economy can (and does, maybe unknowingly even in your own life) exist in conjunction with the money economy, and for a long time played a much more central role in the lives of Americans. Indeed historically it was the central medium for exchange the world over, and still is in many places. What is important for us to know now however is that in times of economic hardship going back as far as the monetary system itself, when money was scarce for reasons of famine, war, or general economic imbalance, the common people have time and again turned to barter to obtain their necessities of life, and so can you. Now in our modern world, you may not be able to walk into the supermarket and offer the produce manager some turnips from your garden in exchange for a chicken, or your old bicycle for some bananas, but that doesn’t mean there aren’t plenty of ways you can barter to save money in other ways.
Why barter? some might say. This is America, not Medieval Europe or something, join the modern world! Truth be told, the modern world is responsible for not only the recent economic turbulence we have been experiencing and the stress it has produced in for us, but also the disturbing lack of options in our lives without money in the bank. The fact of the matter is, there are many ways you can benefit from barter. First is the obvious reason of saving money. Why spend it when you could trade your time (it might cost you a TV show or two) and spend your cash on something more important? Second, it will build relationships as you must have other people to barter with, and rather that a cold exchange of cash it requires the creation of a set of circumstances that both of you might benefit from. Creating such arrangements in which all parties involved win leaves everyone that much happier for it, and you satisfied that you are helping someone else as well as yourself. Finally, barter can create an extremely empowering sense of independence. The global financial system is a very intricate and precarious balancing act, and while it may be impossible for anyone to separate themselves entirely from it, knowing that we are able to somehow function outside of it can provide at least a little bit of comfort.
Great they say, but how am I supposed to do that? I’m an ad exec, who the heck is gonna want to trade my skills for something useful? Well probably no one. Unless you’re a carpenter and can fix your neighbor’s leaky roof (and most of aren’t), your chosen profession may not be very barterable, and thats fine. Barter today is something gnererally done on the side and around the house or neighborhood. Get out on the weekends and talk to your neighbors, see what they need. Maybe there will be something you can help with.
Otherwise, start with what you need. Maybe your lawnmower just broke and you can’t afford to buy a new one or to pay soemone else to do it. Everyone has a lawnmower, do you really need one anyways? Ask the old guy down the street with the shiny rider if you could work something out. He’s retired anyways and lord knows he loves to cut the grass, as much as you see him out there. See what he needs, maybe he loves homebaked pies, maybe too much time weeding the flowers is bad for his back (send one of the kids!). Try the classic carpool with someone from work or maybe someone in the neighborhood heading the same direction. With any luck you might gain good convrsation twice a day and not have to get a new car next year (or maybe you could even sell the second one and save on gas and insurance). For your part, bring hot coffee, home baked goodies, and the daily paper to read to them while they drive. A co-worker always admiring the delicious leftovers you bring for lunch? Bring extra, have them bring you coffee in exchange. Old lady next door have a great garden? Help her weed and maybe get fresh veggies out of the deal.
It doesn’t have to be big , and it doesn’t matter how you do it. Barter today is about the little things. Be creative, be unconventional. Keep what you need on your mind, especially things that require someone else’s time (yardwork, childcare, someone to let the dog out in the afternoon, etc.) and be willing to trade a little sweat for anything you can. Observe what you always seem to have a surplus of, be it tomatoes, time, or a particular handy skill (chimney sweeping, proper hedge trimming, anything else your neighbors might otherwise pay someone to come help them with). If you see a potential, make an offer. Maybe they will bite, maybe they will want something else. Odds are though, they will be as excited about the opportunity to save a little bit of money as you are, and you will be able to come to some type of arrangement. And whether it works or not, who cares? Keep it out there all the same, talk to your neighbors, be open to both one time trades and long term arrangements, and see if the little things don’t start to add up after awhile.
