On the one hand, yes of course the economy is all about specialization and then exchanging the fruits of specialized production between people. This last can happen via money, or barter, or a dictator (benevolent or not) confiscating everything and redistributing it, or some mix of the above, and maybe other methods.

One of the hard problems here is what to specialize in and to what extent. This is a hard problem to solve even in a static economy, and even harder if circumstances keep changing...

The "standoff" description seems to assume a static economy. If circumstances change, maybe we as a society need a grocer for only 4 hours a day but could use an extra half-shift truck driver. But how to discover that?