Posted by: tadmcd | May 9, 2009

The Barter Economy

Why is it that certain “skills” and/or “knowledge” are perceived to have value for which one should pay but others are “assumed” to be given away?

Throughout our lives we have opportunities to trade our services with others, each with his or her own specialty, to get things done.  In some cases, the service may be the same and circumstances dictate the nature of the trade-off (for instance, we may watch a neighbor’s house while they are out of town and they may do the same for us at another time).  Perhaps the service is different but a trade-off is nonetheless made (an accountant may help a friend with his taxes; the friend may offer to mow the accountant’s lawn or change the oil in his car).

Simply put, most folks have the requisite background or time to do something that others do not.  Their abilities and services are their “currency” in a barter economy.

Who among us would hesitate to ask a doctor friend about a suspicious mole or an ache or some condition that may afflict us or an acquaintance?  Do you ever stop to consider that the doctor’s years of education and experience represent his currency in a barter economy?  If the doctor answered your question, would you be willing to mow his lawn in exchange?  Probably not.  Situations such as this don’t really import a sense of value to us; the doctor is merely answering a question.  Of course, without years of education and experience, you could not do the same with any certitude.

If you are an accountant and your neighbor is a mechanic and he offers to “look at” your car when it starts to make funny noises, do you appreciate the service he is providing and find a way to compensate him for his efforts (maybe a case of his favorite beer or helping him with his taxes)?  Probably.

Why are the mechanic’s efforts any different than the doctor’s?  Is it because you can “see” the mechanic at work and you can’t “see” the doctor calling on his education and experience, performing the mental gymnastics necessary to answer your question?

For the record, I don’t think it’s fair to expect someone to incur real monetary loss when doing a favor.  Your mechanic friend may offer to change your oil but you’re responsible to pay for the supplies (oil, filter).  If your hard drive is shot on your computer and a friend offers to fix it, the cost of the new drive is up to you.  Makes sense.  The thing that is being “traded” or bartered is the intangible service (knowledge, skill, performance).  Tangible costs are borne appropriately by the requestor.

I make my living by thinking and communicating, orally and in writing, ideas and suggestions and perceptions and conducting thorough analyses of problems and improvements.  My experience dictates that my abilities, while not unique, are not embodied by every man, woman, and child walking the face of this earth.  I am well compensated for my efforts, as are others of my ilk.

I can also muscle my way around a computer to make it work or to install a piece of software or to troubleshoot and repair it.  I’m fairly certain that many folks, certainly not all, lack this ability, as well.

Others have skills and knowledge that I do not possess.  I can not, for instance, perform surgery with any modicum of success (one assumes) nor can I build a house or repair a TV.  Recently, I needed some parts manufactured for my boat.  I asked a friend for help since I lack, not the knowledge or skill but, the tools to do the job.  He gave me a list of the necessary supplies for which I paid.  In exchange for his services, I bought him a 30 pack of his favorite beer.  I’d say we were both satisfied in our bargain (especially since he shared the beer).  This same friend has the computer acumen of a three-toed sloth (which, upon reflection, he often resembles).  I visit his house and fix his computer and he gives me pizza and beer.  We’re both happy.

I’ve been asked to research legal issues (see: armchair attorney), help with tax returns, write resumes and letters, and often, to fix computers.  In most cases, I receive nothing for my services.  I do it out of friendship.  In some cases I receive some expression of “repayment” (see: pizza/beer).  But I have to say, when the street becomes one-way, it’s a bit disappointing.  Frankly, I’m not sure it’s because the foundation of my abilities is much like a doctor; I don’t “appear” to be doing anything other than offering an opinion.  In other situations, I may spend many hours trying to fix someone’s computer or writing a resume or reviewing a document on someone’s behalf.  Is it fair to expect some form of trade-off for my applying my skills and knowledge?  Should I have an “expectation” of future assistance from someone asking me to do work on their behalf?  I think the answer is a resounding “Yes.”

Do with this as you may.  I proffer these thoughts to raise within your conscience an appreciation for what others do for you and what you can do in return.  Selfishly, I suppose I’m trying to point out that bartering does not always involve tangible evidence of performance; writing a resume or fixing a computer has just as much value in society (and among friends) as tuning an engine or mowing a lawn.  Sometimes, we don’t get that.


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