Conservative Constitutionalist with Colin McKim



A free market form was one of the founding principles of the United States. A cornerstone of conservatism is that the government should rarely interfere in markets, acknowledging that the public is capable of making decisions that benefit society through the wonders of trade.

Yet over time, governments around the world have entrenched themselves deeper into the affairs of business and trade, and now many promise that they can fix the very economic problems they helped create. Proposals call for more state control over the economy, running completely contrary to laissez-faire principal that is so important to classical conservatives. Governments exercise this control principally through business regulations and a centralized monetary system.

In response, many businesses throughout the world are beginning to return to the traditional way of doing business that existed long before the creation of governments: bartering.

As the global recession continues to deepen, world credit markets have largely frozen up, unwilling to make loans despite large injections of cash into the money supply by the world’s central banks. On top of this, many businesses have doubts about the value of currencies when they want to carry out transactions; the inflation and volatility caused by central banks may mean a exchange of dollars may soon not be as equitable as planned.

Fortunately, bartering, a system of trade exists which does not require the use of artificial currencies, exists. Bartering is the true, original form of trade. Commodities are exchanged for other commodities, depending on the needs of the parties involved and the relative values of goods and services, which are determined by the participating parties.

Commodities can take the form of anything seen to hold an intrinsic or inherent measure of worth, ranging from basic necessities to precious metals. Exchanges of services also can be very beneficial to both parties through bartering. Farmers exchanging crops or livestock with other farmers who grew different crops probably was one of the first widespread bartering systems. Both parties benefit and no government is needed to mediate the transaction.

Founding father Thomas Jefferson once said “A wise and frugal government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement.” It is becoming increasing clear that the U.S. government is anything but frugal, and if recent history is any indicator, this government also seems incapable of making wise spending decisions. Instead, governments are doing the exact opposite of what Jefferson advised, assuming they know how to best regulate business.

Bartering can offer a way out of this regulatory boondoggle.

Although the IRS tries to regulate bartering with the income tax, the fact that it is so easy to conceal makes it difficult to find just how much bartering takes place. And exactly how a simple exchange of goods or services can be considered “income” to both parties and therefore subject to direct taxation is truly ridiculous. Such a policy discourages efficient allocation of products in the marketplace by assigning numerical currency values  (which are taxed) to products, instead of recognizing that products have actual value to the parties.

The current bartering boom is largely due to the Internet, which facilitates bartering by connecting people and businesses offering goods and services. Various bartering Web sites, themselves for-profit businesses, serve as moderators for bartering exchanges. The International Reciprocal Trade Association is a nonprofit based in Portsmouth, Va., that regulates and provides standards for these modern barter-service companies. The association estimates that more than $16 billion worth of business is exchanged annually through barter exchanges in North America alone, with significant growth potential.

New online barter exchanges are springing up worldwide, using innovative systems to make operating an exchange both profitable and beneficial to members.

Asia’s biggest barter trade site,, connects over 600 businesses in Malaysia and Singapore and up to half a million businesses participating in over a dozen barter exchanges around the world. Barterxchange’s membership has grown by 30 percent since 2007 as businesses find barter as an easy way to expand their operations without having to borrow money.

Some barter exchanges create their own type of monetary system, translating the values of the goods or services offered into credits. Members gain these credits when another member takes them up on an offer, and lose them when find an offer useful to them. This method does not require the products be of equal value, as these credits can be exchanged interchangeably at any time. The exchange operator takes a small cash cut as a transaction fee, depending upon the scale of the transaction. Old-fashioned barter sites like Craigslist are seeing increased usage as well, with Craigslist reporting an increase of 100 percent in activity on its barter boards.

Cash-strapped businesses and individuals are finding barter a great way to establish relationships with potential future trade partners while at the same time circumventing complex banking procedures. Barter has a new lease on life, a resurgence of an age-old practice is taking place with the help of an unexpected tool — technology.

Join the Conversation


  1. Great article, a lot of people are turning to barter, companies too, not only because of their lack of extra cash but also to get away from the dollar. We just did an interview with the AOCS, American Open Currency Standard. The system offers one ounce silver medallions which are used in barter transactions instead of money and they are wildly popular.


  2. If you are in southern california and you want to barter your service and be a part of the california(2500 members) and the nations largest barter exchange.(50000 members)affiliated with itex no fee to join and no credit line

    818 883 7654

  3. Do you have enough business?

    Would you like to trade your services for all the things your paying cash for?

    Do you have excess inventory or spare capacity?

    Would you like Money Mailer, Newspapers to advertise your business? We are a partner.

    Increase Sales
    We can increase your bottom line 5 to 15 %(A member will come to you instead of the business next door that he pays cash.
    Improve Cash Flow
    Your expenses are constant..Utilities, labor, rent. Barter a couple times a month will make a difference.
    Save Cash
    Use barter for your everyday expenses (dry cleaning, bakery, coffee house, auto repair)
    Expand Market Share
    Introduction into new market, Exposure, Networking with fellow business owners
    Referrals of members to non-members Word of mouth, A member that uses your service tells a friend who doesn’t barter.(CASH BUSINESS)

    Do you own a business and want to trade with other business owners in the LA area? I am a representative and member of the largest trade company in LA. We facilitate trades between our members to save them CASH!! All members of our company can be accessed through the company web-site. Also, your broker will advertise your company to the rest of the members, generating new business from clients you would not have!

    COST: $20 monthly fee Ask us about waiving the monthly fee through referrals

    EXAMPLES OF MEMBERS: Restaurants, Hotels, Message, Mechanics, Chiropractor Doctor, Dentist, Golf, Painters, Advertising, Web-design, Printing

    Business Barter Southern California
    818 883 7654

Leave a comment

Your email address will not be published. Required fields are marked *