David Halpern
Behavioral Insights Team
November 12, 2015
Here is an excerpt:
Levels of social trust, averaged across a country, predict national economic growth as powerfully as financial and physical capital, and more powerfully than skill levels – over which every government in the world worries about incessantly. It is also associated with many other non-economic outcomes, such as life satisfaction (positively) and suicide (negatively). In short, it’s not much fun living in a place where you don’t think most other people can be trusted. Low trust implies a society where you have to keep an eye over your shoulder; where deals need lawyers instead of hand-shakes; where you don’t see the point of paying your tax or recycling your rubbish (since you doubt your neighbour will do so); and where you employ your cousin or your brother-in-law to work for you rather than a stranger who would probably be much better at the job.
The entire article is here.
