Earlier quoted context omitted.
For that you need repeated interactions and reputation networks. It requires densely networked communities where defection is punished with ostracism and tainted reputation. It works in small communities that have known each other for generations and are expected to rely on each other in the future. The ability to move into new circles every few years incentivizes defection and low trust interactions. However tight k…
>Low trust enables outlier performance. Business moves at the speed of trust. Outlier performance can only exist in a high trust environment. Low trust society is highly correlated with low economic activity.
High trust environments are usually high trust inwards and low trust outwards toward outsiders who show up. They may show great hospitality but won't trust you with their affairs. Outlier entrepreneurial risk taking behavior only works in places that have medium-trust for everyone, by using contracts and other formal things.
High trust is incompatible with high mobility and "fresh starts". High trust is built when there's a way to retaliate and there is a way for reputation to spread. High trust among strangers only works if you can assume that the strangers are embedded in high trust networks that are in some way connected, even if you don't directly know each other.
If you can pack up and go anytime, trust will be lower. But for economic efficiency, being mobile is positive.
There are tradeoffs here. People didn't just become low trust randomly.