BUY OR BARTER?
When Elsa Berg of Visby, Sweden, came home from the hospital last year, she was still recovering from Covid. Too weak to cook, she considered ordering meals from a local restaurant, but the cost was much more than she could afford. Fortunately, a friend recommended Barter Up – an online group in her neighborhood whose members exchange various items or services with each other instead of paying for them. "I offered some of my spare gardening tools in return for hot meals," she says. "It worked out really well, and enabled me to rest and fully recover."(lines 1–6)
Bartering has existed for thousands of years and at first was mostly used for getting basic goods such as food, clothes, and building materials. Following the introduction of money, its use gradually decreased. However, bartering has never completely disappeared, and in times of financial difficulty it often increases dramatically. That happened, for example, during the severe economic crisis that hit America and Europe in the 1930s. Millions of people who had lost their jobs and their savings had to barter their possessions for food and other essential items. Many got what they needed through organizations that were set up specifically for that purpose.(lines 7–13)
Another worldwide economic crisis was caused recently by the Covid pandemic. "We experienced a sudden rise in unemployment," says economist Marvin Walker. "Moreover, factories all over the world closed and international shipping met with serious problems, causing global shortages of a wide range of items. All this led to a surge in bartering. People started exchanging things like toys and clothes for basic items such as eggs or toilet paper. Luckily, it was not difficult to find bartering partners: Long before the pandemic, many transactions were already being done online. During Covid, new barter websites – and even apps – rapidly appeared to meet the increasing demand."(lines 14–21)
These days, bartering is not limited to individuals – businesses engage in it too, both locally and internationally. They commonly do so through websites known as "barter exchanges," where they can easily find suitable partners. "Suppose you own a small hotel and want to attract more tourists," says Walker. "On a barter exchange, you might find a website designer who will help you advertise the hotel online in return for a free stay there." According to estimates, the value of transactions through barter exchange websites is 8–12 billion dollars a year.(lines 22–27)
While bartering is widespread nowadays, Walker believes it works best on a small scale in local communities. "Think, for example, of a neighborhood 'time bank' whose members offer an hour of their time in return for an hour of another member's," he says. "You might give someone a piano lesson, and in return get help painting your kitchen. That could be two new people you've connected with! And with more and more people in the neighborhood helping each other, social ties within the community become stronger. In my opinion, this may be bartering's greatest benefit today."(lines 28–34)