Social Capital(-Ism)

Human society is impossible to maintain in the absence of trust. Nations, governments, and corporations exist only in the human imagination. Our collective trust in their existence makes them real. Have a monkey choose between a banana and an Apple Inc. share, and you see this in action. The same applies to money – another figment of the human imagination that relies on our collective trust. It’s ironic that something like money, which frequently causes people to distrust each other, relies on mutual and shared trust in order to even exist. Once trust leaves the monetary system, value naturally leaves with it. Inflation and bank runs devalue currencies; scandals devalue stock prices; forgery devalues goods and services. Without trust, currencies, companies, stocks, and relationships are close to worthless. Money is our most universal system of value, and also the ultimate trust intermediary between people. We might not trust each other, but we mutually trust money. This transaction-level consensus allows us to do business with people we don’t know or like…