Graeber: Myth of Barter

1. Economists, from Adam Smith to the present, argue that money evolved out of a barter economy. How do they arrive at this conclusion? Explain their thinking. Why does this “myth” have such staying power?
2. If there is no historical evidence of a barter economy, what kinds of economic institutions existed before money? What are the examples that Graeber discusses?
3. Graeber argues that acts of barter typically only take place between strangers or enemies. Why? What is it about the nature of Barter that makes it an unlikely basis for society?

Wray: Modern Money

1. According to MMT, why must the state spend before it can collect taxes or borrow?
2. According to MMT how does the Federal Government spend? What happens to money when taxes are collected?
3. If taxes do not finance government spending what do taxes do?
4. If bonds don’t finance government spending what do bonds do?