In order for an economy to prosper, there must be a high degree of trust in the system. For instance, without trust that someone will uphold their side of a contract, only limited kinds of transactions can occur. If there is trust that a contract will be enforced then there is higher assurance the other party will make good, making it possible for more complex arrangements and entities outside the system can more easily participate.
See also:
- In trust models, contract enforcement would be 1 of 1 there is reliance on the legal system (judges, lawyers, courts) to act as expected.
Links to this note
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Prospera Is a Libertarian Corporate Charter City in Honduras
Próspera is a charter city run by the Honduras Próspera Inc (HPI) in conjuction with the Honduras government ZEDE laws which enable setting up economic zones (i.e. charter cities) governed by a non-Honduran entity (like a corporation). The group established the first zone in Roatan in an area of unused land the size of Central park.
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A global survey that attempts to measure the extent to which people trust or distrust institutions in their country and in other countries.
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Cede and Company Owns All Publicly Issued Stock in the US
A single company operates as the ledger for all stock transactions in the United States. Cede & Co. essentially own all publicly issued stock and stock is traded through contractual rights.
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Businesses Are More Trusted Than Government
According to the Edelman Trust Barometer, people trust businesses more than they trust government, media, and NGOs. In the US, there is a 13 point gap between businesses and government.
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A products is not just collection of features, but a promise to solve a problem or enhance the customer’s life in some material way. Faithfully delivering on a promise makes for a great product. Failing to deliver on a promise makes for a flimsy product.