Trust ... plays a key role in economic exchange and politics. In the absence of trust among trading partners, market transactions break down. In the absence of trust in a country's institutions and leaders, political legitimacy breaks down. Much recent evidence indicates that trust contributes to economic, political and social success. Forbes wrote an article in 2006 entitled "The Economics of Trust". The article summarizes the importance of trust in creating a healthy economy: "If you take a broad enough definition of trust, then it would explain basically all the difference between the per capita income of the United States and Somalia," ventures Steve Knack, a senior economist at the World Bank who has been studying the economics of trust for over a decade. That suggests that trust is worth $12.4 trillion dollars a year to the U.S., which, in case you are wondering, is 99.5% of this country's income. Traditionally, gold has been a store of value when citizens do not trust their government politically or economically. In other words, the government's political actions affect investments, such as gold. It is interesting to note that Americans no longer trust their politicians, the justice system, their ability to obtain liberty, or the media. Americans know that the boys launched the war in Iraq (which will end up costing $3-5 trillion dollars) based upon justifications which turned out to be untrue. Many Americans have read that the government imported communist Soviet Union torture techniques and then said "we don't torture". Many Americans also know that the government spied on American citizen (even before 9/11 ... confirmed here and here) while saying "we don't spy", and that the government apparently planned both the Afghanistan war (see this and this) and the Iraq war before 9/11. This is an economic, not a political, essay. But I think the lack of trust in government concerning political issues poses an interesting question. Specifically, is it possible that the American people's distrust of the government concerning the above-described issues also bleeds over into a lack of trust in the government's economic actions and statements? In other words, if people discover that a government is lying about political issues, do people trust the government's pronouncements about economic issues less? http://www.marketoracle.co.uk/Article13406.html
IF (big IF) we have a revolution... and get rid of both the Republicans and the Libtards... we will have politicians we can trust somewhat for a while. Nothing short of revolution will mean anything. And we still won't have much of an economic recovery. At best, we'll experience a "low level simmer" with persistently high unemployment and a lack of well-paying middle class jobs.
You actually consider Democrats more trustworthy? Are you kidding? I want the whole two party system abolished, I've decided to vote Green Party over here just so I can see whether Democracy actually works.
We still don't know much about economics. I think there is too much hype that economics depends on trust. We know white because of black and we know right because of wrong. The need to fall back on trust very often is because of fundamentals that have real reasons for concern. If politicians make economic policies that are detrimental to the economic well being of a country, any initial trust in those politicians would be eroded. If things are bad and trust is lost, it has nothing to do with absence or presence of trust. There is such a thing call dynamic stability in mechanics. Humpty Dumpty is a good example of dynamic instability. The pyramids of Egypt are good examples of dynamic stability - whether you have or do not have faith in your strength, you cannot make them fall !
It´s funny how change occurs.... Oh...one would never take 50% less in salary....yeah ? This is exactly what the US Govt. itself has to do.... It cannot become the largest part of the total economy.... It needs to be no more than 7%.....certainly no more than 10%.... ................................................... The only true solution for the US is to changeover its tax system to a 15% consumption tax or less....and no more....10% State/5% Fed....all by state mandate.... Business will take care of itself.... This combined with a renewed non-NY centered direct access securities exchange ie BATS model ...with no taxes of anykind on any type of security....is all that is required....Then the exchange will move innovation to where it needs to be....Easy to police as well....regulated by a new reg regime...out with the old CRAP.... ............................................. The consumption tax imposition ...along with the non gamed...non NY centered direct access exchange will enable the US towards a new golden era....NY = Not to be trusted.... .................................................. The US needs a new TRUE REVOLUTION....render the recent govt. impositions null and void.... And impose immediate clawbacks and justice to those causal.... The game is now not in Afganistan ...Iran...Iraq....the new game is Intra-US.... Or was it Afgan., Iraq, Iran , Ven....fucking over most US citizens ....?????? ...................................... It is clear that everyone is tired of hearing pundits discuss what has already happened.... What is needed now ....ARE SOLUTIONS.....
Doesnt matter how much trust you have. If i trust a theif with my life savings, im still going to lose my life savings. There is no such thing as a jobless recovery. Jobs are they very first thing we need to get back.
I think the thread title was meant to be "Trust will be Restored When The Economy Recovers" and not "No Economy Recovery Until Trust is Restored"
I agree, we need a revolution. But who will start a revolution. Politicians and people are too weak to start a revolution. I can see only army/military strong enough to start a revolution.
That's why it would be remarkable. We'd need "10s of millions" of protesters I'd guess. By the time that many of us "get it"... enough to demonstrate our dissatisfaction... likely will be too late.