Chapter 7 Bartering

Source : http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd

Summary:"
The article above highlights the revival of the traditional barter system on the market. Many small businesses are using the bartering system to accumulate profits and to combat the economy. One business owner Joe Cox was quoted saying "I get all my landscaping done, painting at my shop, gutters, dental care, I get all my basic necessities - prescription glasses." which he trades in exchange for his services and most experts say the key to bartering is finding the right network, skills, products and services.

Connections: 
We covered the barter system in the chapter and it is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium for exchange such as money. Money was created and used because it was more convenient and is kept afloat because of its perceived value. In the article people have replaced money by exchanging their services and products because it reaps more benefits then using currency.

Reflection:


Although the bartering system is a great alternative, money is more practical in many situations in developed nations because it is divisible, durable, has value, etc. Having a bartering system in a complex economy is difficult and is not useful in many situations. There are people who use bartering system to escape taxes because it is not traceable.