Fun fact: America got rich by being boring. America never went through periods of rapid GDP per capita growth like you see with China. Instead, it’s rich because it has grown at a consistent 2% almost continuously for 200 years, minus a couple of blips before/after the civil war and great depression: https://www.aei.org/carpe-diem/theres-one-thing-we-can-alway...
replyBoring, high trust societies are conducive to risk taking. High trust reduces transaction costs. And people are more likely to take risks when they can trust the system under their feet is orderly, stable, and trustworthy.
I just showed above that "high trust societies are conductive to risk taking" is extremely wrong. Every high trust society on earth right now does the exact opposite. It's a lack of risk taking keeping Europe and even Singapore in a slump/relative slump. It's doubly that for Japan and Korea got lucky as hell with its control of the HBM memory industry but without that it'd also be fked for the same reason.
replyYou need LOW trust for risk taking.
There's no fundamental mechanism (at least that I'm aware) that stops a high trust system from awarding funds to a risky venture. If that's not happening it's a systemic problem (or feature as the case might be) as opposed to some fundamental mechanism dictating covariance.
replyI think in practice the conditions that lead to high trust societies forming also tend to lead to culturally valuing predictability which translates to a bias against risk. But that's not an inherent part of high trust rather that's just how things happen to be at a given point in time.
Just like tyranny isn't an "inherent" part of communism. Right.
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