For one thing, the barter myth “makes it possible to imagine a world that is nothing more than a series of cold-blooded calculations,” writes Graeber in Debt. This view is quite common now, even when behavioral economists have made a convincing case that humans are much more complicated—and less rational—than classical economic models would suggest.

Corporate barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a "trade-credit". The trade-credit must not only be known and guaranteed, but also be valued in an amount the media and advertising could have been purchased for had the "client" bought it themselves (contract to eliminate ambiguity and risk).[citation needed]
Finding a way to make a profit from bartering isn’t just a challenge to the people putting up their livelihood for trade. Even the brokers who act as bartering middlemen are searching for creative ways to make money from a service that isn’t about making money. A website like Swap.com—which connects people who want to exchange their unused household items—looks, at least on paper, like a financial windfall. Jeff Bennett, Swap.com’s CEO, claims that “the business has been doubling every year.” They’re closing in on 450,000 registered users, who’ve taken part in more than 4 million barter exchanges valued at approximately $13 million since the site’s inception in 2010. But as no part of that $13 million is in actual money, how exactly does Swap.com cover its overhead? Most of its capital comes from “related aspects of the business,” says Bennett, such as shipping fees and corporate sponsorships. “We’ve had very good experiences with companies like Gallo wines, LuLu’s Clothing, and ModCloth.” He also hopes to introduce a Swap.com subscription service in the near future that offers customers incentives for forking over a monthly fee, like an ad-free environment and early access to their favorite items.
No, said Mises, for if taken back far enough, there comes a point at which money first emerges as a medium of exchange out of a pure barter economy Prior to this, it is valued only for its non-monetary uses as a commodity The demand for money is therefore pushed back to the last day of barter, where goods are traded only in direct exchange, and where the temporal element of the regression theorem ends It is in this way that all charges of circularity are obviated.

Other countries though do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions, but taxation is handled the same way as a cash transaction. If one barters for a profit, one pays the appropriate tax; if one generates a loss in the transaction, they have a loss. Bartering for business is also taxed accordingly as business income or business expense. Many barter exchanges require that one register as a business.
×