In the mid-90s in the wake of The End of History and the Last Man Francis Fukuyama wrote Trust: The Social Virtues and The Creation of Prosperity. Trust to some extent has a chicken & egg problem. High trust societies can overcome coordination problems which block social and economic development. A high level of social trust often results in positive spillover effects, which generate economic growth and broad based prosperity, which then boosts the levels of trust even further. In 2008-2009 I suggested that the biggest long term impact of the late great “financial crisis” is that many Americans no longer believe that doing well is an outcome of doing good. More accurately perhaps in many corrupt societies the presumption is that the path to wealth is itself a venal journey where all moral principles must be devoured by the will to power.
As a practical matter I understand and accepted the need to dampen the shocks of the impending financial doom in the wake of the 2008 crisis. But my attitude toward American capital has changed irrevocably. I know others who have experienced the same emotional flip. …