Comment Re:A giant leap backwards. (Score 1) 118
Originally, all transactions were based are barter, before human beings discovered that the use of money was a much more efficient means of matching up supply and demand. With barter, you need to match up with somebody else whose needs and supply are the reciprocal of your own. With money, your supply and demand get translated by "the market" into monetary values, and you can exchange goods with people halfway across the world. Explain to me again how barter is a superior system...
The concept of "barter" is actually quite interesting, and often misunderstood. People (and economist) just assumed that earlier, it worked as it does wtih money now, but just without the money part... It has been found however when looking at old societies and tribes to have worked very different however! There where 2 kinds of barter actually: the social trading inside the same society (village or tribe) and the trade between different villages. People did actually not barter in the sense "I will trade my cow for your 5 barrels of grain", at all. On the social barter side it was actually a system of debt, rather then direct trade. You seldom exchanged items, animals (or daughters) against something predeterminded. Instead you "gave" it away, with the social glue and norm that when you need somehing, you would get something back.... so in fact a constant system of favors owned and debts that you would get repaid later. And on the "intertribe barter" It has been found that bartering was actually much for of a ritual - on the old times it often required a long and hazardous journey to get somewhere where things you didn't produce yourself where made. And the "exchange rate" was set by tradition, and not some vague understanding of what a cow was worth.... To quote David Graeber:
In the 1940s, an anthropologist, Ronald Berndt, described one dzamalag ritual, where one group in possession of imported cloth swapped their wares with another, noted for the manufacture of serrated spears. Here too it begins as strangers, after initial negotiations, are invited to the hosts’ camp, and the men begin singing and dancing, in this case accompanied by a didjeridu. Women from the hosts’ side then come, pick out one of the men, give him a piece of cloth, and then start punching him and pulling off his clothes, finally dragging him off to the surrounding bush to have sex, while he feigns reluctance, whereon the man gives her a small gift of beads or tobacco. Gradually, all the women select partners, their husbands urging them on, whereupon the women from the other side start the process in reverse, re-obtaining many of the beads and tobacco obtained by their own husbands. The entire ceremony culminates as the visitors’ men-folk perform a coordinated dance, pretending to threaten their hosts with the spears, but finally, instead, handing the spears over to the hosts’ womenfolk, declaring: “We do not need to spear you, since we already have!”