In the past few decades, our trust in institutions has begun to erode:
- When government officials lied about invading Iraq, we lost trust in our representatives.
- When banks lied about the creditworthiness of mortgage backed securities, we lost trust in our financial institutions.
- When news outlets began to report false information, we lost our ability to trust credible news media.
Trust is the cornerstone of any organized society, from student clubs to governments. If we cannot be assured that our peers will follow the same rules we operate from, we hamper our ability to cooperate with one another.
And so we attempt to codify trust. We create charters and constitutions to set fundamental rules for the game. Laws help further elucidate the nuances of these rules and we employ physical and financial force to create a cost to not playing fair. In doing so, we create a strong system of assurances that you and I will respect the rules of the game through codification, cultural norms, and consequences.