Social institutions function through trust only at the individual micro level

Evidence

Whereas in personal trust reflexivity is an exception, system trust builds upon the fact that others also trust and that this common quality of trust becomes conscious. Certainly it is not necessary in each individual case to remember that the ability to function rests on trust in trust. It seems rather that familiarity with money, power and truth is learned as behaviour and that typically the reflexivity of this mechanism remains latent, as does its highly risky character. Such latency can make the creation of trust more simple and act as a safeguard against uncontrollable fears – what would happen if everyone suddenly wanted to cash in all their money, or if everyone appeared armed on the streets. Nevertheless, the rational basis of system trust lies in the trust placed in the trust of other people. The uncovering of this basis through sociological analysis can make the conditions under which this type of trust functions transparent and thus alleviates the type of latent insecurity which typically accompanies a reliance on mechanisms which are not understood. — Niklas Luhmann, Trust and Power, 261 (#contradicts, via linked claim)

Categorization

  • XREF: connects to: Loose social conventions undermine our capacity to make credible long-term commitments; Everyone relying on shared institutions is a fragile, tipable equilibrium; Trust is a small-scale phenomenon that institutions must replace to enable large-scale cooperation (+8 more)

Broader Connections