What is the “Honeybun Economy”?

The honeybun economy refers to an informal barter system that develops in prison environments, where traditional forms of currency like cash are unavailable or strictly prohibited. In this underground economy, inmates use items from the prison commissary, such as honey buns, ramen noodles, candy bars, or other desirable goods, as substitutes for money. The term “honeybun economy” specifically highlights the role of honey buns, a popular and easily accessible snack in commissaries, as a commonly traded item that often serves as a unit of currency within this system.

This type of economy arises from necessity. Inmates often have limited resources and restricted access to items they need or desire. For example, personal care products, extra food, or even services like laundry, artwork, or legal assistance might not be provided in sufficient quantities or at all. In such cases, prisoners trade commissary items with one another to acquire what they need. Over time, certain goods, like honey buns or ramen noodles, become widely recognized as having stable and universal value, making them suitable for trade.

Honey buns are particularly notable in this economy because of their popularity and versatility. They are inexpensive, widely available, non-perishable, and considered a treat by many inmates. This makes them ideal for use as a medium of exchange. For instance, an inmate might trade a honey bun to obtain an extra packet of ramen noodles, or use several honey buns to “pay” for a service provided by another inmate, such as cleaning a cell or crafting a handmade item. The value of a honey bun in this system depends on supply and demand, which can vary across prisons or even between units within the same facility.

The honeybun economy mirrors certain features of formal economies, such as the use of commodities as currency, the establishment of exchange rates, and the influence of market dynamics like scarcity and demand. However, it also reflects the unique constraints and social hierarchies within prisons. For example, inmates with commissary privileges or access to a steady supply of goods can accumulate surplus items, effectively giving them greater economic power within the prison. These individuals may act as “bankers” or intermediaries, trading items at a profit or loaning goods to others at high interest rates. This accumulation of wealth can elevate an inmate’s social status and influence but may also create tension and conflict, especially if debts go unpaid or trades are deemed unfair.

The honeybun economy also sheds light on how prisoners adapt to their environment and create systems of trade and value in the absence of conventional monetary systems. It demonstrates human ingenuity and the ability to establish functional economic systems even under extreme restrictions. However, this informal economy can also highlight deeper systemic issues, such as the inadequacy of institutional provisions and the inequalities that arise from disparities in access to commissary goods. Inmates with money in their prison accounts, often sent by family or friends on the outside, can afford to participate more fully in the commissary system, giving them an advantage over those without external financial support.

Beyond its literal meaning in prison life, the concept of the honeybun economy has been used metaphorically to discuss economics and human behavior in other constrained environments. It serves as an example of how people assign value to objects and create systems of exchange when traditional forms of currency are unavailable. Whether in a prison setting or another situation of scarcity, the honeybun economy illustrates the adaptability of economic systems and the creativity of individuals in overcoming limitations.

Similar concepts to the honeybun economy can be found in various environments where traditional forms of money are absent or limited, leading people to create informal systems of trade and currency. One comparable example is the use of cigarettes as currency in prisons, which historically preceded items like honey buns or ramen noodles. Cigarettes were highly valued due to their scarcity, widespread demand, and consistent exchange value, making them an effective medium for trading goods and services. As smoking bans in many prisons came into effect, other commissary items like food or hygiene products took on this role.

Another example is the use of barter systems in communities or economies where access to formal currency is restricted or where trust in conventional money has eroded. In such cases, people directly exchange goods or services without involving money, relying instead on mutual agreements about the value of what is being traded. This often occurs during economic crises or in rural areas where cash flow is minimal, and individuals trade items like food, livestock, or labor to meet their needs.

In times of war or extreme scarcity, makeshift economies also emerge, with people assigning value to non-traditional items that become critical for survival. During World War II, for example, prisoners of war used Red Cross supplies such as chocolate, coffee, and cigarettes as currency within camps. These items were bartered for other necessities or even favors, reflecting the adaptability of people to create functional economies in constrained situations.

The use of commodities as currency can also be seen in historical economies before the widespread adoption of money. In ancient societies, items like salt, gold, or livestock served as mediums of exchange because they were valuable, durable, and widely accepted. These commodity-based economies laid the groundwork for modern monetary systems but also mirror the informal economies that arise in settings like prisons, where participants adapt similar principles to their environment.

In modern times, digital environments have given rise to virtual economies where non-monetary items hold value. For example, in online gaming communities, virtual goods such as weapons, skins, or in-game currencies become valuable assets that players trade for other digital goods or even real money. These economies operate under their own rules of supply and demand, much like the honeybun economy in prisons.

The honeybun economy shares commonalities with any system where individuals create alternative currencies or methods of trade in response to the absence of formal monetary systems. These systems highlight human ingenuity and adaptability in assigning value to available resources and establishing functional economies under unique constraints.