17 Sept 2007

Barter vs Cash

Barter vs Cash, the clash of the titans? Perhaps, but one reason many businesses give for not bartering is that they need cash for their business to survive. This is true, but if we look at the bigger picture, greater efficiencies and optimisation of resources can be achieved with bartering. Based on economic ideology, running an economy (or business) at less than optimal levels causes wastage. This wastage most of the time is not recoverable. Cash may sometimes seem more coveted than barter, but on the whole, by bartering, businesses end up benefitting much more than solely relying on their cash businesses - which will always be there.