Barter dates back thousands of years when early societies used corn, tea, and shells as a form of currency. Egyptians bartered using copper rings. Babylonians employed barley. Roman soldiers’ salaries were paid with salt.
During the Middle Age, Europeans bartered crafts for spices, silks and perfume from the Far East. Colonial Americans bartered weapons for furs. Miners during the California Gold Rush bartered oxen for horses and food.
With money in short supply, the Great Depression of the 1930′s fueled the use of barter. A decade later, WWII forced industry to barter for scarce materials.
Barter in the 1970′s expanded as a means not only to offset rising federal, state, and local taxes but also to dampen the effect of inflation. During this decade, media barter began to flourish.
The recession of the 1980′s saw the creation of hundreds of commercial barter exchanges as well as the expansion of corporate barter. The Tax Equity and Fiscal Responsibility Act passed by Congress in 1982 became a deciding factor in the modern day evolution of barter. By regulating barter and defining barter income as equivalent to cash income, the 1982 Act legalized barter and gave the industry a significant measure of legitimacy and spurred its growth.
Today, more than ever, barter is embraced by companies as a strategic business solution.
- 30% of world trade is bartered according to the U.S. Department of Commerce.
- 65% of NYSE corporations use barter as a means to reduce surplus inventory, increase sales, and/or maintain production at or near capacity according to the International Reciprocal Trade Association..
- Over 400,000 American companies barter.
- An agency exists within the U.S. Department of Commerce solely for the purpose of assessing barter opportunities for other departments of the U.S. Government.
