In order for bartering to be a successful payment of transactions, both sides must want what the other is offering and be willing to trade for it. Unfortunately, the seen above shows the difficulty of meeting the condition known as double coincidence of wants. Even though the man has Johnny Cash headshots, the young entrepreneur is only willing to accept US cash.
The guitar player is too busy to do his taxes, but TurboTax is happy to step in. The opportunity cost of stopping to complete the task is high for the guitar player but low for the accountant. The two can benefit from trade by having the musician continue to produce music and the accountant complete the taxes.
Thanks to Luke Starkey for the clip and summary!
In this scene, the King is desperate to find a suitable prince for his daughter, but Jafar offers to help. The cost? The king’s expensive ring. Despite a clear emotional attachment to the ring, the king offers to exchange the ring for Jafar’s services since he believes the Jasmine’s benefit will be worth the loss.
Abed is running the fryer in the cafeteria and is in charge of the most popular item on the menu: chicken fingers. The school’s Spanish teacher wants those tenders and trades Abed for a box of tenders. The exchange? A 10% bump in his study group’s grades. Exchanges can be achieved through a barter system when someone has something that the other one values. This double coincidence of wants is required for a successful exchange.
Issac and his friends are in search of a ship and finds a captain who isn’t current sailing. Issac threatens to kill the Captain and take the boat, but the Captain reminds him of how important it is to have the captain on the boat since he knows how to actual sail the boat. Isaac thinks that sailing a boat can’t be that hard, but the Captain points out that sailors exist for a reason. He is willing to sail Isaac and his friends as long as he is paid and promised not the be murdered. This scene is a good example of the double coincidence of wants and the importance of specialization and trade. The Captain has years of experience sailing ships while Isaac does not. It’s worth it to Isaac to trade coins for the Captain’s skills.
Thanks to Bryan Sloss for the clip recommendation
In this American Express commercial, Tina Frey highlights the economic concept of gains from trade. A man in front of her gets the last goat cheese garden salad, but she really wants that salad. She has to figure out what he might possible want from her. She offers to buy his movie and include her snack box if he’s willing to exchange the salad that he had just received. Both parties benefit from their ability to trade with each other.
Thanks to John Raby for the submission!
In this anime scene, Joseph teachers viewers how to haggle for sandwiches in a market. While shop owners may try to start with a high price for foreigners (perhaps as a price discrimination technique), requesting lower prices may help identify the sellers’ willingness to accept. The benefit of trade and exchange is a mutual coincidence of wants. The two are able to find an acceptable trade, and thinks to the storyline, we can even calculate consumer and producer surplus!
Thanks to Lynne Tierney and Edison High School for submitting this! Lynne shared that a student in her class shared this video after going through a negotiation simulation.
Kyle MacDonald started with a red paperclip and ended up with a house. Trade and barter requires a double coincidence of wants, but Kyle was able to find people willing to give up something he valued more than his holdings. Mutually beneficial exchange makes both parties better off. This is a great clip to start the process of discussing why trading can grow an economy and why centrally planned economies are harder to coordinate.
Thanks to @AlcovyEconomics on Twitter for the clip!
In this animated short from the Walt Disney Company, Uncle Scrooge discusses the history or money and the importance of money in the overall economy. There are A LOT of great teaching opportunities in this clip and would make a great summary of a money supply lesson or a required video to be watched before the lesson.
Opening to 7:15
History of Money
Huey, Dewie, and Louie visit Scrooge McDuck and request that he help them save the money they had earned. Scrooge goes through the history of money and discusses the role of salt as the original salary that Roman soldiers received. He then goes on to describe money from other societies and why money was important following original barter economies. The characters even discuss the role of money as a medium of exchange!
7:15 to 9:59
After learning of the importance of money in the economy, the brothers question why central banks don’t just print more money if everyone wants it. Uncle Scrooge discusses the role of fiat money and why it’s important for the money to be backed by something or someone who can promise to pay the notes that are printed.
10:00 to 13:20
Financial Planning and Taxes
Uncle Scrooge teaches the brothers about the importance of budgeting. People need to make sure that they allocate a portion of their income toward rent, food, and other necessities. He also teaches them about the role of taxes and how important it is for governments to have a budget and make sure that they collect taxes to pay debt.
13:20 to End
Velocity of Money & Investment
The boys are curious why Scrooge keeps so much money in his vault if he tells them that it’s important to put money “to work.” He teaches them that the money in his vault is just his petty cash and then goes on to discuss the importance of money circulating through the economy. The ending portion discusses the role of corporations issuing stocks and shareholders collecting dividends. At the end, he signs the boys up to manage their funds, but charges them a fee. The boys aren’t happy, but he laments that “nothing is ever free.”
PBS Newshour investigates the economics around the first Thanksgiving, including the differences between Europe’s cash economy and the indigenous barter system as well as common resources and property rights.