You must Sign In to post a response.
  • Category: Miscellaneous

    Which one is better -Money or Barter system?

    Barter system is the old method of exchange which was used before the arrival of money. In barter system the people exchanged goods and services for other goods and services in return. After the invention of currency, trading of goods and services through bartering was reduced and the exchange of goods and services happens in the form of money. When the barter system was in existence, there was no shortage of foreign exchange and imbalance in the trade and moreover the people did not give more importance in gathering wealth. After the arrival of money, people started to give more importance to the piece of paper lying inside the wallet and wanted to earn money in an easy way. Lot of economic instability, social evils, black money, over capitalization and many more issues has been raised in the Society because of money.

    Both currency and barter system has advantages and disadvantages.

    What do you feel is the best exchange system – Monetary or Barter System? Why?
  • #574626
    In the past, the number of products available as well required were only limited in numbers. In the absence of technology, only natural products were available to depend on and barter. In a typical agrarian society, the farmer used to exchange the agricultural produce with a blacksmith or a potter or a goldsmith or a weaver and such other skilled workers competent to add value to a raw material. The advent of technology has resulted in the introduction of many value-added products which were unheard of in the past. Nowadays the number of available products is such a large in numbers that only the computerised systems and bar codes can track the same. Thus in the developed scenario, it became impossible to continue the barter system and instead the system of currency evolved as a necessity. The barter system may be still continuing at the local level in the remote areas in undeveloped societies.
    In the modern societies, the barter system was visible only in the form of exchanging old clothes with steel utensils in smaller cities and towns.

    Let us encourage each other in sharing knowledge.

  • #574636
    The barter system still exist in rural and tribal areas, where people used to exchange their productions like lintels, vegetables, woods, coals, clay pots, and many more jungle and agriculture products in weekly markets, as well as with the native people. People staying in interior/remote areas like hills, forest and villages still don't pay more attention on buying the products which are avail in their locality. They do exchange their own earned products with others in need of their products.
    However, it is not possible in towns and cities; as we all depends upon the merchants though we don't make any manufacturing at home. Even some products are locally made here like dress materials, eatable products like papad, pickles, and wooden and iron furniture etc but such products are hard to exchange as the rate varies among them.

    Naresh Kumar
    'Every bad situation will have something positive. Even a dead clock shows correct time twice a day.'

  • #574652
    Well in olden days in villages when they run out of the food and other products, they wont have money and instead they would fetch the required item by discarding the unwanted items with them. Thus barter system was developed and that was famous. I think that system must be followed now also. We should not carry the money where ever we go. Instead we should take some things with us and that should be attractive and useful. By selling the same or by bartering, we can have the required food items or other required products from others. Money should be sparingly used and we must try on barter system once again.
    K Mohan
    I consider myself as the learner everyday

  • #574766
    Even though the money system is leading to social evils, lack of capitalization etc., I believe that money system is better than barter system. Suppose a person has cashews and another person has white papers, how can they both exchange each other's possessions such that both parties are equally benefited? It is not possible as there is no measuring scale. A measuring scale is discovered and it is called as money. In my opinion, a hybrid of barter and money systems must be discovered so that both parties will be equally benefited.

Sign In to post your comments