How Crashing of USA Economy Contribute to the Rise of Barter Trade (Essay Sample)
how crashing of the usa economy could possible contribute to the rise of barter trade . The paper mainly discusssed diffrent opinions about the fall of bartet trade, the current condition of the usa economy, ande he possible reasons why the flourishing of the usa economy lead to the death of barter trade.source..
Rise of Barter Trade
Rise of Barter Trade
The barter trade system is one of the ancient trading systems used before the discovery of the currency. I some cases, barter trade was regarded as a traditional trading method, whereas in some parts of the world, barter trade was used as the primary trading system. Since the invention of the currency means of payment, barter trade has been significantly used during the economic deterioration; a good example is the significant American economic sanction. Barter trade has provided a cheap and more localized way of trading and acquiring the items that one lacks more conveniently without spending. The constant economic challenges worldwide have led to the need to critically evaluate ho a fall or a poor economy may rejuvenate the barter trade system.
Despite the deteriorating economy worldwide, there is still a need to trade, buy, and own secondary and primary markets. The deterioration of the world economy may be attributed to the low levels of income, which significantly result from unemployment or employment in deplorable working conditions (Dalli & Fortezza, 2019). A fall in an economy is usually exhibited by high inflation levels, a competitive and very tight economy where the upper class or the rich can lead a comfortable life (Warren, 2021). A crash in the USA economy will see many people resort to a barter trade system to acquire their primary and secondary life to lead a comfortable life. Additionally, a crash in the USA economy will also show the country depending on the USA on aids to switch on barter trade system to utilize their local available goods and services amongst themselves (Love, 2018). According To Taskinsoy in his research, the barter trade system has been vitally used by a majority in countries facing economic crushes (Taskinsoy, 2019). Barter trade ensures that both the poor and the rich can acquire their basic needs; hence a fascination in the American economy will vitally facilitate the blossoming of barter trade as the best option to receive goods and services across all social classes indiscriminately (Demps & Winterhalder, 2019).
A revival of a fallen economy requires the best economic strategies. After the Great America Economic Depression, economists put several tactful economical techniques to help revive the American economy (Mahtar & Suki, 2020). One of the strategies employed after the great economic depression was the use of barter trade (Love, 2018). Barter trade was employed during the period to ensure an equitable distribution of goods and services with the economy, to facilitate the economy’s growth (Warren, 2021). Historically, there have only existed two successful trading methods: the currency and the barter trade method (Pontianus, 2020). In case of the failure or crash of the American economy, it is very likely for the American society to switch to the only reliable means of trading apart from the currency method, which is the barter trade method (Warren, 2021). Additionally, the crush of the American economy will leave barter trade to be the only means of acquiring goods that people are well informed about (Eichinger, 2019).
Usually, economic crush is characterized by high inflation rates, poor economic growth, high-interest rates, and widespread unemployment due to the collapse of business entities that create employment opportunities (Shen et al., 2019). In a society with an economic crash or failure, there is always a wider social gap between the poor and the rich (Mahtar & Suki, 2020). Financial loss in the USA may create a shortage of goods between the lower and the social classes, creating the need to exchange goods with each other to acquire what they don’t have between them, which significantly leads to the growth and establishment of the barter trade (Toscher & Stein, 2018). Additionally, the social gaps naturally create a need to exchange surplus with what they don’t have (Taula, 2020). According to the research conducted by the Internal Revenue Service, in America, almost 57 percent of the American citizens prefer to use the barter trade as the average trading dollar, and the red barter trade dollar is almost of the same economic value (Mahtar & Suki, 2020).
Another reason that would promote the barter trade system’s bolstering is that the USA dollar is almost equal to the barter trade dollar. According to the IRS, the current value of the USA dollar is practically equivalent to the value of the barter trade dollar (Shen et al., 2019). The equity in the value of a currency in the barter trade dollar and the American dollar significantly makes the barter trade the best trading substitute for the monitory cash in case of an economic crash (Toscher & Stein, 2018). Additionally, the IRS research stipulates that the taxable rate of the dollar currency and the barter trade system is comparatively equal; hence both the income generated from both currency trading methods may be equivalent (Taskinsoy, 2020). The comparative equality and value between the barter trade dollar and the American dollar may independently promote the positive growth of the barter trade system as the best replacement of the currency method (Pontianus, 2020).
During the economic depression and crisis in the USA, it is always hard to get hold of a dollar or even earn. According to Dalin in his research, economic depression and hard times are very frustrating to the general county. The barter trade method is always the most preferred means of trading (Pontianus, 2020). The prevalence of the barter trade system in economic crashes and crises in America is positively promoted by the fact that very few people can afford to earn a dollar; hence, the barter trade system, which is non-monetary, may be the best last resort in a country with undistributed earnings and currency (Siddiqui & Erum, 2020).
During economic strains, living standards and the relative commodities prices are raised above the average price. This includes the increased rental fees, medical insurance, and food prices. A hike in food prices and other essential services and products may promote the growth of the barter trade (Taskinsoy, 2020). This includes people trading their services for goods and their surplus to obtain their essentials, leading to the barter trade’s proper growth and widespread (Pontianus, 2020). The convenience and easy way of carrying out barter trading may also promote the development of barter trade during economic struggles (Love, 2018).
Conclusively, barter trade plays a very critical role in establishing the world economy. During economic crises and crashes, barter trade acts as t
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