Document Type

Article

Date

2011

Embargo Period

9-17-2012

Keywords

Norms, values, ethics, Great Recession, Adam Smith, trust

Disciplines

Economics

Description/Abstract

When trust is shaken, individuals pull back and the market system contracts. Where trust grows, individual energy and creativity are unleashed and the system grows. In Adam Smith’s vision of humankind’s progress, trust is the central theme. The Great Recession represents a classic case of a crisis of trust. Looking back to the work of Smith offers insight into the role of citizens and the State in creating an fruitful market environment based on trust, and the challenge of this process, given the human frailty of individuals (unfortunately, we are not angels) and the potential for State power to be captured and abused.

Source

harvested from SSRN

Creative Commons License


This work is licensed under a Creative Commons Attribution 3.0 License.

Included in

Economics Commons

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