Article: http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd
Summary:
This article is about the rising usage of the traditional barter system in today’s modern age. It is mainly utilized by small businesses, helping them survive the current economy and thrive in it as well. The article then continues on by providing facts regarding the origins of the barter system, stating how it was around for a long time. They then provide an interview with a small business owner, taking advantage of the barter system. Joe Cox, a small business owner, proclaims how advantageous it was for him to use the barter system in the current declining US economy. While everyone is cutting budgeting towards advertisement, Joe Cox has expanded his.
Connections:
The barter system connections directly with the chapter we are currently studying, which pertains to money. More precisely, I am referring to the value of the dollar. One of the most important aspects of money is for the people using the currency to have faith in the value of it. In the article, the people no longer have faith in the weak American dollar and as a result they are looking for alternatives. They fell back on the old and traditional barter system, because the traded goods proved to have a significant value towards them, rather than using traditional money.
Reflection:
The news that some small businesses are reverting back to the system of barter alarms me regarding the course of our bleak future. It scares me how some people have already began losing fate upon their country’s dollar and its value. It feels like the world and its economy is about to shatter. It is also note worthy to mention that the date in which I am writing this article is May 15h, six days away from what a certain religion refers to as Judgment Day. The cumulative evidence is kind of frightening to me, perhaps something horrible might occur in six days time, perhaps not and I am merely over speculating things.
Sunday, May 15, 2011
Tuesday, May 3, 2011
Virtual Card Questions
(1 Point) How long do you think it’s going to take to get to all virtual cards? How many years?
I do not think virtual cards will ever take complete dominance over the consumer’s way of purchasing. I will have to say 0 years, because it will never happen.
(1 point) Why?
To support my stand against virtual cards, I present evidence of the present day. In today’s day and age, we would believe that the form of coin and paper currency has eliminated the previously inconvenient barter system, but that is false. Even though it has been over thousands and thousands of years since the introduction of coin currency, the traditional barter system still exists strongly alongside the paper and electronic currency system of today.
(2 points) Who will not be on board with this new virtual wallet?
I believe the people who will not be on board with the new virtual wallet are people whom possess a certain personality pallet. People, who are stubborn, hate change, want things to remain the same, and people who have major security issues with electronic money currently as it is.
(3 points) What companies are going to be affected negatively by this? Name 3
The most significant impact of turning towards all virtual cards would be felt by small and independent companies, such as the corner store on Victoria and 43rd, who don’t have the means to purchase all the equipment required to operate in this new situation. Bigger companies such as Louis Vuitton and Michael Kors will also be affected negatively by this, as the demand for wallets will decrease.
(3 points) Who is going to make money from this? Name 3 (industries)
Banks will obviously make money from the usage of virtual cards, as you have to apply through them to get in touch with one. Where they would make money is through all those fees they charge you like activation and franchise fee. The plastic industries will also benefit, as there will be a higher demand for their product to produce the virtual cards. An arguable industry would be the retail industry, as credit cards would allow consumers to purchase more expensive items, since they virtually carry their entire bank account with them.
I do not think virtual cards will ever take complete dominance over the consumer’s way of purchasing. I will have to say 0 years, because it will never happen.
(1 point) Why?
To support my stand against virtual cards, I present evidence of the present day. In today’s day and age, we would believe that the form of coin and paper currency has eliminated the previously inconvenient barter system, but that is false. Even though it has been over thousands and thousands of years since the introduction of coin currency, the traditional barter system still exists strongly alongside the paper and electronic currency system of today.
(2 points) Who will not be on board with this new virtual wallet?
I believe the people who will not be on board with the new virtual wallet are people whom possess a certain personality pallet. People, who are stubborn, hate change, want things to remain the same, and people who have major security issues with electronic money currently as it is.
(3 points) What companies are going to be affected negatively by this? Name 3
The most significant impact of turning towards all virtual cards would be felt by small and independent companies, such as the corner store on Victoria and 43rd, who don’t have the means to purchase all the equipment required to operate in this new situation. Bigger companies such as Louis Vuitton and Michael Kors will also be affected negatively by this, as the demand for wallets will decrease.
(3 points) Who is going to make money from this? Name 3 (industries)
Banks will obviously make money from the usage of virtual cards, as you have to apply through them to get in touch with one. Where they would make money is through all those fees they charge you like activation and franchise fee. The plastic industries will also benefit, as there will be a higher demand for their product to produce the virtual cards. An arguable industry would be the retail industry, as credit cards would allow consumers to purchase more expensive items, since they virtually carry their entire bank account with them.
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