Bartering History
Is bartering for goods and services makings its fourth comeback in the United States? History shows that when the US economy begins suffering from economic downturn that bartering begins to show up. Until now bartering has appeared in primarily three eras during the history of the United States.
- The colonial era. During the 17th and 18th centuries, money was scarce, so the colonists relied primarily on bartering, with commodities such as beaver pelts, corn, musket balls, nails, tobacco, and deer skins (from which we get our modern slang, “buck,” meaning “dollar”). Colonists also used the money of other cultures — the Native Americans’ wampum, (which consisted of beads made from shells), and the coins of foreign countries.
- The Great Depression. During the1930s, money was scarce. People established barter groups like The Unemployed Citizens League of Denver (with 34,000 members) and the National Development Association.
- The early 1980s. During a long recession, bartering regained popularity; it was featured in many magazine articles and many new books. Hundreds of barter clubs were created throughout the nation. More companies learned about the the advertising industry’s “trade-outs,” and international commerce’s “countertrade,” and the other possibilities for bartering in business.
Making a Comeback?
Bartering seems to make a huge comeback when people’s daily lives and survival needs are not being met due to the lack of money. Right now the unemployment status of many Americans is forcing them to “trade” for goods and services to help keep their lives running. Sure you can’t get your mortgage lender or phone company to agree to barter, but you can get services from smaller businesses who are struggling themselves.
With no jobs available, Americans are getting creative. Starting a business is expensive and in order to survive in this modern world you are almost required to have internet access, cell phones, and other techy gadgets to survive. Problem is these things cost money and without a job money is sparse. I am noticing a trend lately where many of these new entreprenuers are needing services, but because of lack of funds they are looking for people to barter with them. Take me for example my washing machine went caput on me last week and being unemployed I don’t have the $400 to fix my machine let alone buy a new one, but then I found a gentleman (by way of craigslist) that just started his own appliance repair business, and after a short phone conversation found out that he needed a website and facebook fanpage… hmmmm I can do that. Then last year when my ac went out I was able to do the same thing. After bartering with others they also tend to recommend your services as you do theirs, thus helping each other grow in business.
I predict that though we are in a struggling economy, you can still be successful if you can think outside of the box. What products and/or services can you offer someone, can you put a fair dollar value on your skills to make an exchange with another person/business who is struggling to survive?
Do you think this is becoming a common practice? Are more people getting creative in their venture to start a new business? What kind of skills do you have that could be traded for services that you need?
New site just launched… BarterintheBoro.com – check it out!
