« Stuff You Should Know

How Bartering Works

2011-02-08 | 🔗

Bartering is an ancient practice. With the emergence of money-based transactions, it's no wonder that people might think bartering is a thing of the past. Tune in to learn more about the bartering process -- and where it's still used today.

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I'm Lord Siegel and I'm hosting a new pod cast serious called first contact each week will have new Onst an emotional conversations about what it means to be human and how technology is changing from engineers. Coating Botz deserve the dating Epstein intimate conversations with tech. Pounders will tackle the ethical issues at a future. Now the Tec is just another layer of our skin. Listen at first hand, Laurie sing off. That's me, on the eye, her radio outline apple pie casts more worrying at your fight cabins brought to buy the reinvention two thousand twelve Camry. It's ready for you,
Welcome to study should now has to work and work into the park. Cast iron Josh Clark with a barely awake Charles of each bright, whose drowsy eulogizing really go. It's totally different when you get to be forty, two it'll drowsy other time for you rested. Yeah spoke up, cried of Millet forty downhill, buddy I'll. Tell you something that the prisoners in Florida State Penal system certainly look forward to spring sulphur, in addition to their ok buying honey buns at the commissary that the said, the new Council Black Sea, you know. I wrote about this in somebody. Had a funny comment like that honey ones chuck. There is no other way
really terrible good of you to think about, but no actual honey, but you know like the the pastry desert, the best love it do. It depends on which bring your talking about. My opinion became on you and your husband return. When those are, they frost, oh I've gotta try one of them. I had no idea how you well, the ones I talking about coming cellophane, yeah, there's sulphur about a bucker so in prison. So you know it's not the greatest brain on the planet, probably programme and apparently in Florida. I think around the country, but informed in particular. There New prison currency honeybees are raised because it's a new product, the people this crave. Well, it's just the kind of
only building up over time and revised and making the cigarette joke for decades right notice that actually tobacco is out sold in the in the floor to state penal system by honey, bonfire everybody loves a honeymoon near sore envelopes. There, like the number one seller really in in state presence in the county. In the county, lock up freezer coffee and roman noodle still out so honey bones. But if Europe, if you have the river in the state, yucky yeah honey bundle number one while then envelopes, because people clearly like to write their letters right yes similar. They use envelopes. Napkins for high went down with me seems like they would give them ample ups commodities. Guys aren't gonna, take the time to write somebody right given envelope it now goodbye yeah with your thirty five since in our making license plates anyway charters.
So unfair. So these honey bones are there used as bribes protection there used in exchange for other food items. Sure maybe some armed lopes if you're running low their use for bets, is wagers ethic seriously, there's really clerical and Saint Petersburg Times. That was really well written about it, but what these people are doing, let's say in the case of a bribe, let's say tied the White collar crime, who somehow ended up in a state prison. There is paying tiny, the ironically named huge guy for protection in honey bonds
what's going on, there is Bartering Todd, is bartering. A honey born in exchange for two tiny is service protection, bright, beating the Torah guys who want to take Todd, honey ones, or he himself not doing that with his own cronies, a racket. That's that's not necessarily the same thing, all trading without money- I guess so ok, so so we ve finally reached the end of that God awful Intra, and we are talking about bartering chuck
bartering, new or all old area old, as the hills, the earliest civilizations Josh bartered for stuff, because there was no currency back in the day, so I mean you know, Caveman took took that we all talk about cooked up trades. You know animal pelt fora. Spear, ok made from Rhino Horn, yet because easy secondary see one of those. But I've got all these great pelts and you look a little cold, less work out a deal here right partner and it is in Europe's ITALY right. It is pretty old it really started to take off after we left our hunter gatherer roots, they're, the ones we settled down in the community's yeah. I made a lot more sense. You might be sincere
farmer in enough with the surplus. Are you got all the green you need near, but you need to meet to ensure- and this guy over here has some pigs that have been looking pretty delicious. Lately, they train of some your surplus grain for a pig in the guy who has pigs, get some of your grain and he has pigs. You have pigs and grain to happy yeah. Do you think this whole thing is funny for some yeah I mean that's out. I started. I actually did a report in elementary school. We headed social studies report where we had to devise a city of around like a town and we had to construct. You know how I looked at and what they did, and I was only kid who had a barter system set of money. I very smart teacher thought at the time that I was very very smart kid for doing that, those in nine years old everyone's while the discriminate drift off before you taking a shower about a bit better
too late. As a teacher gave you that idea knows my last one. Congratulations Chuck has stuck with me all these years, though, that it's funny that, as a little kid I thought bartering was kind of ecosystem that was and still is, will find out it yeah there's a theirs. Of cool baby calls not the right way. Don't think cool is in economic terms, but there's it has a lot of benefits in that bartering generally, doesnt led to surplus right yeah leads to arm. Basically people having what they need. Your exchanging want something you need something you have. Someone else needs for something in a dry have in a most case. In most cases, you dont want a whole lot of leftovers. You just kind of you have something that you're willing to exchange for something else. Everybody seeking an evil,
Trade so nobody's giving anybody a lot more than they need you or you know, conversely, screwing the other person over and in taking as much as possible, because both parties have to be cool with it right for the others, no trade. So there's no other surplus, not a lot of surplus to anyone whose Red Jared diamonds, the greatest mistake in the history of the human race, and means that you don't necessarily have anybody who's in charge. Or has control over other people by controlling the surplus. Interesting, very well when Bartering Josh, its everything's relative, obviously, because if you need, if you live someplace where it's cold and you need more shelter, blankets, I'd say or whatever or less modernizing, say heater, then that's gonna be pretty diet.
Right, where you time others the relative value of an item exactly so like in a money system like there's a fixed value to the dollar and fluctuating others, inflation and deflation stagflation. But ultimately, when you're coming to somebody with a dollar, you both have been agreed upon awareness of what that dollars worth, which is a dollar yeah, you're saying with the heater somebody who lives in a hot climate is going value that thing lesson somebody who lives in a cold climate, absolute, so the person, the cold climate would be pay more or trade more for that relative value of the distinction between bartering in money, yet one of em but the mainland. It's my fate Timing is another big deal when it comes to bartering because, depending on when this is happening, and what you're situation is
Things can have a different value. The article is an example of Richard, the third, my kingdom, for horse when using a battle. Ah, I was in a hike in Utah one time where I would have paid a thousand dollars for a bottle of catering right or left down the hill there out of the gate, a red hot, and if I treated well yes bad did you were you hospitalized now try them all. Your urine was just chunky. Style came out of little pebbles here I missed the bathroom Escargot bakery alley, and this is the Peat and Sebastian POD catches a show of beaten. I talk about our personal private lives, in season one from scratch? I had a blast. I descended into the old continent. Awkward, I visited far,
I and the chefs? Could we did lots of cooking sitting Their vegetables, the carmelites mine, is completely different. Now is incredible, isn't it Michael season? One is now complete, build work whenever you want to hear any or all of it. If you like it, please rate and or reviewing listen to from scratch, with Michael Room on the eye heart, radio, alpine apple pie, CAS or wherever you get your focus. So yeah timing has a lot to do with the value of something. As far as how much you might need that item. Yet in gene Mcgrath wrote this one Jane, she did a good job to Emma Jane. Yes, let me ask you this: what about when it's, not the one? The one deal like
you ve got corn and your friend Ralph next to your farm has of cows, but rather What corn he want to eat, but you're, a body that your cornea, your body, peat, as we so you want, you can arrange a little three way: trade there, if you're, an innovative guy undiscovered Triangular bar an mba teams. Do this any sports team can. But it happens. One NBA then you're out, while dreaming later address, Dixon stuff. Well, just trading players like it, you know what your center, but you want. My point argument there forward, but I'll take their foreign package it in such a way that its accommodates everybody. So that's a triangular border, which is so you are pointing something out, and that is not necessarily the most common thing in a border, economy, where you have something that I need, and I have something that you need at that moment to that, will that's an works. Great talked about timing and relative value right. Yes, what a downside to the border indicative
more complex than a triangular barter. That's a lot of work. You know, that's a lot of work and get enough if you find that third person, and so Ralph has they call you want, has wheat you have corn, but PETE doesn't want your corn you're gonna have to go, find somebody who wants your corn, who has something that peat would want to get a grip yes or more years called the multilateral trade. You could seek it's kind. Convoluted is, while I'm totally well, I'm when it gets convoluted. You there's a greater risk for making a bad deal just to get it over with just because you really need that cows and that's one of the debt mean I will talk about the downsides. Certainly one of em get won't well. I think we can all our we already there.
Well, that's one of the downside is that a lot of work goes into this and in the end, you might settle for less than a great deal, because its there's so much work involved under some other factors that might force you to settle firm Poohpooh deal, and that is time works against you near error. We can use the example of you with the gator aid yeah right. Why were you somebody who had something to trade for that gatorade? At that moment in somebody came along with catering gouged, you say you had tomatoes to trade right now. You can indeed the trader tomatoes cause they're, perishable item there. Some time is working against you sayin. You might take a bad trade, it's just to get rid of these tomatoes right right or in the article. Examples is
Well, let's say your craftsman, you bill these great banquet tables. Banquet tables are big and heavy. You gotta trade for tomatoes cause. You really need this tomatoes in the guys. Like hey, you know, I mean I'll, give you fifteen tomatoes, because it now this is like three hundred tomatoes, but Wigan do three hundred tomatoes. So it's when you dont have equal. Yet a lot of small things. You have one large thing in kind of in trouble of you pick the right business model, yeah a craftsman and even if you, even if you Take three hundred tomatoes, you're gonna run around. You know trying to trade the Surplus There is therefore no other stuff you may or may not need which, when it could be done tables, you should be building tables. You do such a good idea.
Exactly so that's because you know bartering initially sounds are covered, so great is trade things in their money in money leads to badness. But it's not that simple. It is rare that you just find that perfect match and perfect timing to work out a window, one trade right and then establishing that that value, considering that everything in a barter system has a relative value in theirs as Jane put it in a comparing apples, the oranges is still comparing you no fruit of roughly the same shit size. It's a bad thing. She yeah she points out that it's a terrible say it's like the low men on the total near I assert saying now. This are comparing cows tabled legs, exactly people with a key talking. A dispute like listen, Pakistan exactly so check, because our ancestors are four p
Oh I'm ran into these problems where they couldn't figure out how many tomatoes equal the table and when they did it just was way too much sure they get tired of lugging two tables around. They came over something that we call money near currency and its solve the law, a problem for all of its drawbacks and ills and evils money solved a lot of problems with easier to carry money around than a table for one yet think about how much a hundred dollar bill ways now much memory, much it's! It's heavy, my pocket them my friend, It burns mine went all it can also be divided, pretty easily sure you know. A hundred one dollar bill still isn't as heavies table.
Well on a level playing field like you said so, then you don't have to compare tomatoes, two tables. It's pretty easy to set your price of people by great. Then you got your dough and you conspire to tomatoes for dinner that night, but ghoul that sir, it's money, you I'm something of their. You call with this honour it. May you like the buyer system. Not which would you prefer money or body? Well, I mean. Is it nine year old if a bartering was kennedy- and I still like the concept of trading like that, the musical instrument section on Craigslist is is lousy with goods like I'll trade. My less ball fear Martin Acoustic right, so you
hit upon a the modern revival of bartering, it's all over the place actually yeah. I think Craigslist has an entire section for each city dedicated to bartering specifically right as it subsections in the I dont know. If you know I think Craigslist does have a section, but, unlike the music instruments Board, there's people trading disconnecting that's where they secrets, but on this whole sites dedicated just to bartering near abroad.
Services, that's gotta, be included. Yeah Emily actually does that the Adena, yeah she'll trader she's been getting her hair done in exchange for soap and actually the craft seen the integrating this like. That's all they do. Is trade wreck. My cooking I'll, give you this kid's jumper Ferrara bottle lotion, and this is a unique parties pretty old, but a resurgence of bartering isn't knew. There is actually an explosion in the late seventies of barter clubs not to be confused with racquetball clubs or swears club future both also await seventies. Yet these were barter clubs early around for a little while will people meet in Swat things? I think a mail order, ok, but when you take a look at these clubs, then- and today what you described Emily doing is is pure bartering right
But we know one of the big limitations of bartering will to the big limitations. Are a geographic boundaries yeah right with which the internet overcomes, because you know some guy into Coma as something you need is willing to ship it, and you have the he needs. Geographic boundaries gone right done, but the timing thing is still a problem, so why barter clubs and barter websites have come up with is on if, if the person doesn't have anything to give you Then they can trade, you and credits. Yet another has gone on. That's gonna call that's money away now that currency, that's it think about a dollar bill. It's it's a credit to promissory note. It doesn't all the inherent value here, but only within that network is currency like it's not like. You can take those credits out to Mcdonald's they'll say now thoroughly. I can't, but it still
currency- yes right so like within that barter network is still there still using currencies to so difficult to get past. You know the necessity for currency here. This viewpoint knew tat. Is it's a big sham? Then you are talking about a crashing being like huge bartering right now. They love it Getting is as well I business borders we more than I ever realise, yeah sure I have sat for. If I may, in two thousand eight north american companies, then even internationally north american companies bartered twelve billion dollars in goods and services yeah and apparently that was partially a result of the recession. Doesn't it
one they did like seven point: seven: five billion, but still a substantial amount of stuff that was traded either in the form of goods or services right people striking a deal like her. She goes bail bonds will sponsor your baseball team and no pay for your jerseys. If you put because bail bonds on the back, yes worry will eventually in the case of the Yankees Idiot new member, there's more to us and then his wares Dennys was era. Net saw the other day Dennis they were high profile team, our they get a high profile sponsor. We were talking about the recession
accounting for an increase among businesses and one of the great things about bartering. Is you the essays your cash to pay down tattered keep workers on the payroll cash was always good for this yeah I'm. So that's why corporations to people do it in times of crisis, which is the case was part of the case. Right now, there's been a huge resurgence in consumer bartering right, because the economy by Adam in Argentina in I think, to designate who doesn't nine their economy was really in shambles and there were bartering clubs everywhere Flynn and in places where there are natural disasters, ITALY a lot of times, the first thing they will turn to US bartering, at least in it, in a temper sense, though they can, can I get things restored because at the end of the world? What's what's that dollar bill gonna do? For you know, I read almost the same phrase on a post collapse: blog survival, Blue
really, and the guy was ramble in all some items. It'll be a bartering that was made dollar bill is not among them. No, of course, not available now for my heart, a new series presented by T Mobile for business, the restless ones join me. Jonathan Strickland, as I eggs the coming technological revolution and the business leaders who stand right on the cutting edge? There are certain decision makers that are restless they No, there is a better way to get things done and they ready, curious excited for the next technological aviation to unlock their vision of the future. These restless ones are in pursuit of bigger, better stronger they the new partners, new strategies, new processes they pursue innovative plan. Arms and solutions to propel their teams, businesses and industries forward in each of US
will learn more from the restless ones themselves and dived deep into how the five g revolution could enable their teams to thrive. The restless, it is now available on. I heard you were you listen to pod guests? Iris Josh little talk about that, because, if you think hey, this is a great way to skirt taxes. I can trade, my hair cut for my home, soap all day long and my outing myself. Now that risk an audit is now just you know. You spoke to report the stuff yeah, those barter club. The late seventies actually ruined for everybody he ate time was you could barter everything and not pay a sin of taxes on it, but the barter club, the the artificial economy created by the barter clubs, reached about an estimated two hundred million dollars.
In size and iris when we want some of that forces. So they are. They reform the tax code in nineteen eighty and came up with the ten ninety nine be form proceeds from brokering barter exchange transactions. Bartering you have to both parties have to fill one of these out, create gave an estimated market value of the goods or services in pay it. You know when Emily first brought that form home, though that out of it, what is this yet another form? She said you can't treat you gonna pay the piper new in the papers, the IRA. Here it certainly as Josh, but that's not now
Thoroughly, well that that's a bad thing, but the Irish. You can also write stuff off that you, you have traded yeah, so it goes the other way little bit too, and we would be remiss do not mention that yeah you, you can write off his an expense, something you trade begins value in its lost. You didn't get any money for it, which is how the tax system set up if you're not getting it. Money for its different, then stuff that you're getting money for why they point out that if you get one of those trade credits, you could donate that trade credit to Asia, a charity and right that off with that charity, will accept a trade credit. I never really street credit, so you're, looking at its money Is it a point value they assign owner yeah. They actually say it's worth this many dollar one, while one that I came across deep space have something called debits in their trade credits to money,
and there were one davits worth dollar so its money based on money in a bartering network. What money do we ever say that money, inflation, that's one of the downsides of currency, we didn't say it: oh yeah, I mean that's the big deal like you, buy a peck of bushes peaches, one year for ten bucks next year, that might by ten peaches. That's the downside of money, although I suppose I could happen bartering too, they could say rough peach crop this year, not now only trade, you this money for your cow sure here that I would think relative value be effected by supplying demand gin. Yeah me. That makes sense. I would think it wouldn't happen to widespread level that I mean think about how many people are affected by the dollar bill in its fluctuations right thing about how many people are affected by a local peach crop to an that's actually one of the things that bar systems are so appealing to people these days. There is such a movement towards local economies,
a party system cannot be sustained by country of three hundred million people now, so, basically, everybody has to split up yeah. I read an essay about how secession ism could save the U S and that if we don't break up we're in big trouble, real yeah any any non authoritarian system of government can be sustained or adequately. Ministered in populations are very thing: either. Three million are thirty million, while is pretty close in the new reader last month. I get that ought to check. That is the one with Marge. Simpson is rosy the river S critical checked it out, so we don't
I'm, gonna get nails sit for me. If you wanna hear mention of Cow Mcdonald kid we mentioned in the house, swapping Pie castle prematurely. I guess I who treated paperclip for a house that he had to pay taxes on that here too. I'm sure I hope so maybe for birds and pale, and if you want to see a figure that kid you can type in barter search bar has the floor. That come, and that brings up of course, listener. John, We call this one of two eventual mafia letters that guy we got very many who knew by letters turkmen broken boxes. Yeah, who knew of so many people are connected to the mafia, people source. I think it's also like saying like whose name who has native american ideal.
So we're gonna need to. Those are one of right now and one on the following episode in this is from Calvin MRS pretty interesting Calvin Mafiosi, cabin mafias. Stir, listen to upset about the mafia and have a couple of things to say for de I grossly disappointing in both Josh and check for talking about a java leaky. Once mentioning the greatest Simpson episode ever homey the clown. I was disappointed about the sun homer disguises crusty, gets capture by fat Tony any Springfield family and tried to convince them that he is all different kinds of people, joviality being one of them. I didn't make that connection. I remember is like homer. I'm Java lacking jubilant you the rat, something like that, if you did mention it than shame on the editor Jerry for removing it. So let's just go with that healthcare. Jerry. His shame on you Jerry, the Blue, is also, I thought you guys,
interested to hear some hypotheses about why it is called the Mafia one that during the war of the sicilian vespers, a woman found her daughter at the vespers being rate by french soldiers. And then ran through the streets, shouting mafia mafia, which is a dialectical, translation of my daughter, my dog, my daughter, Mafia, the mafia. Under arrest? What I don't know, that's just what he says, sicilian mean everything is making this up. It's a theory. Sorry hypothesis, the second hypothesis is also remnant of the occupation of Sicily by the French. The word mafia might be a grand for mortar Allah, Phronsie Italia in it, which translates into something like ITALY, loans for the death of France, yeah him a f about that.
There were some pretty plausible to me, so I guess the word mafia doesn't mean anything and a family name or anything like that. I never really thought about the agenda, namely, didn't have enough. So these are two hypothesis from carbon. He says these came from a book called the secret societies. Handbook by Michael Bradley might be complete. Baloney I'm not sure how reliable that book is, but it sure is interesting, like very cool. Thank you who was that without the mafiosi. Of course, thank you, cavern the mafia writing in, and we want to hear from you guys to so. I would urge you to send us in emu. If you have something to trade, we want here about it. Rapid out, spoken on the bottom insanity, stuff, podcast,
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Transcript generated on 2020-01-22.