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>Low trust enables outlier performance.

Business moves at the speed of trust. Outlier performance can only exist in a high trust environment. Low trust society is highly correlated with low economic activity.



Big city US and entrepreneurial mobility requires formalized interactions that rely less on trust. The high trust environments put a limit to outlier performance. They are clannish, rumor and reputation driven etc.

High trust environments are usually high trust inwards and low trust outwards toward outsiders who show up. They may show great hospitality but won't trust you with their affairs. Outlier entrepreneurial risk taking behavior only works in places that have medium-trust for everyone, by using contracts and other formal things.

High trust is incompatible with high mobility and "fresh starts". High trust is built when there's a way to retaliate and there is a way for reputation to spread. High trust among strangers only works if you can assume that the strangers are embedded in high trust networks that are in some way connected, even if you don't directly know each other.

If you can pack up and go anytime, trust will be lower. But for economic efficiency, being mobile is positive.

There are tradeoffs here. People didn't just become low trust randomly.


Usually clanish and highly nepotistic societies are classified as low trust. High trust is related to "I trust my neighbors to do the right thing" not "I trust them because they are of my clan".


Yeah maybe I'm mixing up the terms a bit.

There are always ingroups and outgroups. And the ingroup can't expand in an unbounded way if there's high mobility.

Also,marriage patterns are relevant here. Clannish behavior is most prevalent in high-cousin-marriage societies, and you have a more expanded circle of trust when the familial relatedness is more distributed.

High trust is quite unstable either way. You need something to connect you. It's far from automatic. We'll have to rediscover a lot of this stuff that was just thrown out with all the rational Homo oeconomicus theories about people being fungible cogs in a machine and that you can just shred communities and shuffle around the pieces in an atomized way and expect things to go on with trust as before, because this sort of stuff is less measurable.




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