Home
/
RELIGION & LIBERTY ONLINE
/
Why being able to trust strangers leads to prosperity
Why being able to trust strangers leads to prosperity
Mar 17, 2026 2:15 PM

My mother would be mortified by my behavior.

Since before I could walk she warned me about “stranger danger”: Don’t get into a car with strangers; don’t accept candy from strangers; don’t’ go into a strangers house, etc.

What would she think if she knew I had taken an Uber to an Airbnb?

Growing up in the 1970s parents and teachers drilled into my young brain the idea that the most dangerous people in the world (aside from Commies) were “strangers.” People that you didn’t know were out to do you harm, so just stay away from them. The message took sunk in; I became leery of any interactions with people I didn’t know. Even as an adult I maintained the impression that when I walked out my front door I was entering a low-trust environment.

So it was with some hesitancy that I took my first Uber. But when I did a new world opened up to me. It wasn’t just a ride with a stranger (I had, after all, been in a taxi before) it was an expansion of my “circle of trust.” As economist Tim Hartford says, “One of the underrated achievements of the modern world has been to develop ways to extend the circle of trust by depersonalising it.”

Trusting strangers not only makes my life easier, it makes our country more prosperous. Hartford adds,

Steve Knack, an economist at the World Bank with a long-standing interest in trust, once told me that if one takes a broad enough view of trust, “it would explain basically all the difference between the per capita e of the United States and Somalia”. In other words, without trust — and its plement, trustworthiness — there is no prospect of economic development.

Simple activities e arduous in a low-trust society. How can you be sure you won’t be robbed on the way to the corner store? Hire a bodyguard? (Can you trust him?) The watered-down milk is in a locked fridge. As for something plex like arranging a mortgage, forget about it.

Prosperity not only requires trust, it also encourages it.

Read more . . .

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
What you should know about deadweight loss
Note: This is post #24 in a weekly video series on basic microeconomics. When prices are controlled, the mutually profitable gains from free trade cannot be fully realized, creating what is known as deadweight loss. In this video by Marginal Revolution University, Alex Tabarrok shows how to calculate deadweight loss using our example of a price ceiling on gasoline. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed....
What are the unintended consequences of American protectionism?
Protectionism is often associated with patriotic zeal and concern for America. While citizens should certainly have concern for their nation, protectionist measures do not necessarily secure the economic results desired. Acton’s director of research, Samuel Gregg, writes about the unintended effects of protectionism in a recent article for The Stream. These policies often hurt the very people they’re meant to help. Gregg, while admitting protectionism may be well-intended, indicates the superiority of free trade in bringing about human flourishing. Samuel...
5 facts about the Brexit vote and Scottish independence
Scottish First Minister Nicola Sturgeon meets with members of European Parliament. On Monday night, Parliament passed a bill allowing Prime Minister Theresa May to withdraw the United Kingdom from the European Union under Article 50 of the Lisbon Treaty. On the same day, Scottish First Minister Nicola Sturgeon called for Scotland to hold a second referendum on declaring independence from the UK. Here are five facts you should know about these momentous developments within the transatlantic alliance: 1. The bill...
Video: Micah Watson on C.S. Lewis and democracy
On February 9th, the Acton Institute ed Micah Watson to the Mark Murray Auditorium to speak on the topic of “C.S. Lewis vs. Democracy” as part of the 2017 Acton Lecture Series. Watson, an associate professor of political science and the William Spoelhof Teacher-Scholar Chair at Calvin College, guides us through an examination of the political thought of the brilliant and celebrated author known primarily for his works offiction and Christian apologetics. Lewis was skeptical of the ability of democratic...
Can you spare 12 minutes to learn the pillars of a free society?
Communicating the underlying pillars of a free and virtuous society is sometimes like describing the Kingdom of God: We can envision it, but detailing its operations to non-believers can be difficult. (This is largely for the same reason – both are so rarely observed upon earth.) Thankfully, the London-based Institute of Economic Affairs (IEA) has finished releasing a series of brief videos that describe the six pillars of a free society. Dr. Steve Davies, Head of Education at IEA, details...
‘Instruction by which we may profit’: A guide to reading Tocqueville’s ‘Democracy in America’ (Part 1)
When Alexis de Tocqueville authored Democracy in America, a two-volume treatment of America, he wrote it “to find there instruction by which we ourselves may profit.” By “we,” Tocqueville was referring to his fellow Frenchmen, but although he may have written those words in 1835, we as Americans of the 21st century also have plenty to profit from Tocqueville’s wisdom, if we’ll but receive it. In the next several posts, we’re going to walk through Democracy in America methodically and...
Economist as prophet vs. savior
What do economists actually know? What can they possibly know? Assuming his usual role as the insider skeptic, economist Russ Roberts ponders those questions at length, concluding that far too much economic analysis is conducted and promoted with far too little humility. bination of economics with statistics in plex world promises a lot more than it delivers,” Robertswrites. “We economists should be more humble and honest about the reliability and precision of statistical analysis.” This is especially true in an...
Why “opportunity zones” are an opportunity to expand cronyism
Embed from Getty Images Bad policy is not transformed into good policy simply because it’s advocated by good people with good intentions. This should be obvious—especially to conservatives—yet it’s a lesson we continually have to relearn. Consider, for example, the case of “opportunity zones.” As National Review reported, last month a bipartisan group of congressmen introduced a new bill called the Investing in Opportunity Act (IOA), which would will allow investors to temporarily delay paying capital-gains taxes on their investments...
5 Facts about the Congressional Budget Office (CBO)
On Mondaythe Congressional Budget Office (CBO) released its report on the projected effects of the House Republican plan to replace the Affordable Care Act. Here are five facts you should know about the federal agency that “scores” legislation: 1. The Congressional Budget Office (CBO) is an independent, nonpartisan federal agency within the legislative branch that provides analyses of budgetary and economic issues to support the Congressional budget process. (The CBO can sometimes be confused with the Office of Management and...
Understanding the President’s Cabinet: HHS Secretary
Note: This is the eighth in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:Secretary of Health and Human Services Department:Department of Health and Human Services Current Secretary: Thomas E. Price, M.D. Succession:The HHS secretary is twelfth in the presidential line of succession. Department Mission:“It is the mission of the U.S. Department of Health & Human Services (HHS) to enhance and protect the health and well-being of...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved