Trade and Barter

The first forms of trade practiced by human beings was the barter of goods. This worked quite will until the production of goods became specialized in a division of labor so complicated that there might be a problem with finding someone who wanted what you had to trade and who had what you wanted. Barter works well enough in primitive circumstances or as an adjunct to a medium of exchange.

In a new money economy barter would still exist without restraint. If you want to trade your property to someone else for their property it is no one else's business. Laws against such activities would be almost impossible to enforce even if they were enacted.

Capital goods, just like all other goods, are owned and can be traded but in most cases capital goods would be given away. Luxury goods can also be traded and should comprise the bulk of the bartered goods. To make this activity easier, all luxury goods can have identification numbers so that when a trade is performed the change in ownership can be registered. Also, if the two parties do not want to have a one-for-one trade of luxuries, one party can purchase some other luxury for the other to make the trade balance. Thus the new money can facilitate any barter of luxuries.

Trade can also take place using personal services. This can involve either luxuries or capital goods or both. As with goods such trades need not be regulated.