Can reintroduction of Barter trade and commerce in Global economic crisis will help?short term?
This concept is obsolete in globalization era but in crisis period solutions can be utilized and if they are time tested why not take a chance? The poor nations without trad able currency , or crunch , then commodities can be exchanged for mutual benefit and process remains in working mode.
Long back India tried this with some Asian and African countries , it worked in initial phase but later these countries backed out .
This will be a short term measure, subject to mutual understanding and implementation.
Absolutely. In fact, there are companies that specialize in barter. Alternative currencies work as well.
Trade has its value as a function of productivity. Keep in mind that the countries which are in financial trouble are there because they are drowning in social programs which consume too much of the available revenue. Trade, though measured by governments, is really a function of the exhange of products between businesses that populate the globe. Some countries make that easy; some make it very difficult; and some attempt to make it equitable in order to achieve a balance between the outgoing and the incoming. Governments gain off of trade as a function of taxation and fees of those items coming or going. For example, take a country like Greece, which produces olives. In order for the export of that product to grow significantly, a new source of consumption or use must be identified in some other country, otherwise it is not likely that such numbers will rise or fall out of the normal pattern. In hard times, people within a country or area which is cash-starved can benefit by local barter of products which they produce and thereby exchange in place of money. That methodology only lasts for the length of time that it takes for government to figure out that it is going on and place a tax on the exchange of goods and services. People who cannot get their hands on money cannot afford to pay taxes unless it can be done with potatoes or eggs. In this respect, government has the ability to not only bankrupt its citizens but to also keep them bankrupt through taxation and spending. At the present time, most of the countries in the world that are suffering have only one real alternative to coming out of their situation....reduce social programs and reduce spending, then apply the revenue gain to pay down the debt. Once that burden is reduced or lifted significantly, economic growth will begin to return. Any country that finds it has low productivity, high spending, and growing debt is on the road to disaster financially. As social programs expand, productivity shrinks...plain and simple. WB
Sir you have presented in deep and this is happening in third world countries, populism is the way to win elections and offering freebies and lollypop to the voters, damaged productivity and creativity, finally it leads to bankruptcy
bitter truth yo
It is a great concept and would be wonderful if implemented. My only reservation is that you would have to reeducate the people who are used to using currency..
The short term solution..release the currency..
For every dollar that is spent by the population, there is a corresponding 3 and sometimes 4 dollars generated to push the economy...
This is a true story..a country was having an election (done already.) One political party tried to "push" the economically disadvantaged into their side..and did the act Evita Peron was highly publicized about..giving cash by the handful...
The people immediately spent the money on whatever they needed..well food and other necessities..
It ended up pushing the economic flow...
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