Collapsed trust turned commerce into mutual deception and crippled lending

Evidence

Despite its apparent fragility and our many attempts to do without it, it is clear that, in many societies where it is well established, trust is remarkably robust. Fraud is widespread in all the advanced economies, and is extremely costly to companies and individuals alike, but rarely does it lead to the conclusion that no one can be trusted. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 722 (#contradicts, via linked claim)

Categorization

Category: Factual Claims

Related

• Trust survives widespread fraud in advanced economies (similarity 0.89)
• Established trust systems are remarkably robust despite widespread fraud (similarity 0.87)
• Extreme default rates express both scarce trust and high trust value (similarity 0.81)
• Institutionalized money trust replaces countless individual acts of personal trust (similarity 0.81)
• Trust requires freedom be transferred from uncontrollable potency to institutionalized personal responsibility. (similarity 0.80)
• Personal trust becomes system trust under civilized conditions (similarity 0.80)
• Misplaced trust costs far more than forgone trust, making distrust come more quickly (similarity 0.80)
• Economists treat trust as background rather than transaction cost (similarity 0.80)
• Suspicion of others’ trustworthiness is inherently well grounded (similarity 0.79)
• Trust flourishes most where neither kinship nor contract obligations apply (similarity 0.79)
• Trust clues only reduce risk, never eliminate the leap of faith. (similarity 0.79)
• Trust should be a by-product of good institutions, not their precondition (similarity 0.79)
• Trust in practical capacity outweighs trust in politicians’ good intentions (similarity 0.79)
• Trust can be systematically dissolved while a society is preserved (similarity 0.78)
• Distrust is self-fulfilling and cannot be invalidated by experience (similarity 0.78)

Broader Connections

• Trust survives widespread fraud in advanced economies #contradicts (0.85) — Diego Gambetta, Trust - Making and Breaking Cooperative…, 722
• System trust survives individual disappointments that would destroy personal trust #complicates (0.78)
• Misplaced trust damages the trusting person’s presented self-image as well as their interests #expands (0.75)
• Love destroys itself when trust is broken by greed for more #complicates (0.72) — , A-Year-of-World-Stories, 15726
• Extreme default rates express both scarce trust and high trust value #complicates (0.72)