Episode Description: Welcome to Episode 5 of The Not-So-Crazy Canuk Podcast. Mike Grantis will talk about how barter has evolved as a means for companies to pay for goods efficiently.
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Mike Grantis is a Regional Director at BarterPay®,Canada’s largest business to business barter marketplace. His mission is to connect entrepreneurs and business owners in the GTA, and to teach business owners the benefits that bartering can have on their business, and their communities.
Today we are going to chat with Mike about the history of barter
Mike will tell us how Barter is the Oldest form of commerce – dates back to over 6,000 BC where tribes in Mesopotamia used to exchange goods like tea, food, weapons and spices. Later on it was adopted by the Europeans where they would use things like salt and pelts as currency.
Became more difficult as commerce progressed – we first used precious metals like gold and silver, and
then standardized them into coin which evolved into what we have now, which is money. We developed
money as a means of storing economic output – so we could spend it later.
Now we rarely ever barter – In order to get something that we want, we can no longer, in the traditional economy, just pay for using our goods or services… instead, we would have to find a buyer for that good or service, get paid for it, and then use those dollars to purchase what we need. In other words, your economic output now has zero value, unless it is turned into cash first.
How the CRA doesn’t like under the table barter – CRA does not make any tax revenue of one-to-one barter deals that happen under the table. According to Statistics Canada, the underground economy accounts for more than $45 billion in annual economic activity in Canada and over $16 billion in Ontario alone.
What we have done to bring it above board – created an ecosystem where business owners can pay for things they need with their excess capacity or at the cost of their goods sold. Waste divergence – North America is by far the largest producer of food/consumer goods in the world, yet we also waste more than any other continent. Something needs to change.
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