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Caveman Commerce As you’ll recall from your social studies lessons, early humans survived as hunters and gatherers. That means they pretty much wandered around all day picking berries and stalking animals. In those days, commerce took the form of barter , which is a direct trade of goods and services without the use of money . For example, an early human may have traded a primitive tool for a fur hide or berries, or for help from another caveman chasing down a woolly mammoth. Eventually, groups of wandering hunters and gatherers began interacting and exchanging goods and services with other groups of hunters and gatherers. Perhaps one group had a supply of berries, but a shortage of firewood, while the other had a shortage of food, but a supply of firewood. Each group had a desire ( demand and capacity to ”pay” ) for what the other group had, so they’d make a direct trade – berries for firewood. Sorry ladies, but some experts believe that primitive tribes even traded their women for goods and services of the other tribe, including the other tribe’s women. (They were, after all, primitive …) Cave Dwellers Grow Up Pretty soon those hairy dudes and gals got a little more sophisticated. Civilization took a big leap forward when someone got the bright idea that it’s actually possible to farm crops and raise animals, rather than scrounge around all day for berries or herbs, or chase herds of animals for miles. With the extra time on their hands, humans got a little more creative, making and trading things to fill needs, like pottery, cloth, tools, food, salt, spices, even human skulls, which were used for rituals. Eventually, barter evolved into the sophisticated system you’ve learned about in history class, where traders from civilizations like the Phoenicians and Greeks sailed around on great adventures bartering for spices, beads, jewels, and exotic wares. The Significance of Barter Why is barter important? Who cares what those crusty old humans were doing? How does it connect to modern commerce or financial literacy? Here’s how: Barter was the beginning of all regular trade. In fact, the renowned 20th century American economist Frank Fetter stated that it is important to understand barter because it contains within it the elements from which developed all forms of modern commerce : trade, buyer, seller, price, value, supply, demand, and negotiation . What? Modern commerce, as crazy-sophisticated, huge, digital, and multinational as it is, has its roots in the days of those hairy humans? Yes! In fact, barter has been a part of the human experience for so long that many historians believe it is a universal human characteristic . Is it? Let’s see! Direct students to “Bartering Tots Strike a Deal”of the workbook. Read the story aloud. Ask students to note each time they observe one of the elements of barter : trade, buyer, seller, price, value, supply, demand, and negotiation. SLIDE 2G SLIDE 2H PRODUCT PREVIEW
It’s lunchtime at U.B. Tiny School. Kevin the Kindergartener is looking to trade his bag of raw carrots for something delicious. He approaches Kylee the Kindergartener. She looks at him warily. Eying her bag
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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