💲 Money vs. Barter | Characteristics of Money

Money vs. barter. Why is barter ineffective? What are the characteristics of money that allow it to be used that way? Learn Austrian Economics in a fun way!

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[yellowbird]

Due to hyperinflation in Venezuela, barter has been a necessity for goods and services in the past few years among businesses and individuals both. While money is still used, it has become impractical to use much of the time due to the loss of the value of their currency.

[albdim]

This is exactly the video I was looking for. They way you exaplined how the shoemaker could not barter - and, for that matter no other villager could - any longer was FANTASTIC. Thank you so much for making this video.

[maxdondada]

I disagree that bartering is ineffective. The internet can make it very effective if designed the right way

[nicholasp]

This would still work perfectly fine. Only one thing stops this from being totally effective. Some large group of people decided they own all the land under every activity that is done and requires a tax that's difficult to keep up with.

[sekousmiley]

When he said at the end of the video "please subscribe" I was like, you don't even need to bother saying that, I subscribe right away. Indeed, This was a very informative video, explained so clearly and concisely.

[DustyAxe_Reacts]

"i never wear shoes in the summer" is wearing shoes

[lg]

*5 Characteristics of Good Money:*
1) durable
2) identical
3) portable
4) divisible
5) maintains its value

[adamfilipp]

that's why people established local marketplaces, so people don't have to run around as much

[ButterflyHummingbird]

You present some good ideas and examples. Absolutely, gold (silver is highly under-valued, though) is better than the fiat currency we now use.

However, large areas such as a neighborhood in a large suburb of Detroit, Michigan (Southland) started a neighborhood exchange. That neighborhood grew into other neighborhoods which then grew into the entire city of Southland. There are books and websites that teach how to use barter for things that don’t require cash, saving the cash for things that can’t be bartered.

[theultimatereductionist]

What if every individual in a barter economy kept a spreadsheet of all the labor done by and all the needs of each individual?
Say, on paper or on a computer?

[charliebrownau]

A certain person in a certain country came up in the 40s with a money concept that the DOLLAR was based off HOURS
without gold/silver and could be minted with Central banks or overseas groups/corporations

EconClips - Guess who that great person was in history

[meygavox]

For info, in a small economy with few goods, people don't need to rely on barter to exchange goods. They can simply opt for “flexible social credits” – that is a promise to give something back once, not necessarily a specific good or service.

Barter was necessary to make a good emerge as a medium of exchange, and then turn it into a commodity money, but not to make exchanges between neighbours possible.

Thank you a lot for your very insightful videos!

[Aeroxima]

I love how this is looking at things from such a clean slate, rather than just assuming money is a fundamental part of existence, as much as gravity or light. It's an idea, one way things can (and have) been done, not a guaranteed aspect of reality.

[danielmulkern]

This is really great! I used it in my class today! Thanks again and have a great day!

[MyThoughtzAndOpinionz]

I disagree. If he doesn’t need a pair of shoes, he can still stock up on shoes and barter them elsewhere. This will diversify his exchanging power. Most people don’t use the products that they sell anyway.

[charliebrownau]

3:26 What happens when the BANK transfer your nations GOLD to another NATION
and the BANK starts issueing notes in bigger amounts of phsyical gold and silver
CENTRAL BANKS and USRY happens

[priyanktongar]

Good explanation. You covered all the point with a better explanation.

[Smartmouthgamerrd]

two questions, does the IRS frown on bartering, and if so, why?

[Mahra]

thank you for your explaining its very helpful for me

[gyorkshire]

The societies working on the barter system you describe never existed. Cool story though.