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Excellent point. Beyond the high- versus low-trust gradient you pointed out is the time element. Our ongoing degeneration into a low-trust state is highly corro
by yourapostasy 11y ago
Excellent point. Beyond the high- versus low-trust gradient you pointed out is the time element. Our ongoing degeneration into a low-trust state is highly corrosive and even regressive to develop complex, multifaceted economic structures, which differentiate themselves from simpler structures by their exhibited time preferences.
When you select for low-trust options in a previously high-trust environment, you also select for shorter timeframes of activity. Those shorter timeframes directly manifest as fewer options; there simply isn't enough time to let beneficial compounding effects ramp up and hence open up more options by supplying more per unit resources over time. The cognitive load to manage these shorter timeframe activities also goes up per unit returned equity/resources/margin versus a longer timeframe; I wouldn't be surprised if it goes up non-linearly in most cases. None of these effects are reported upon, tracked, or even detected in accounting systems today, except at terminal end stages. The current dominant business culture is yield chasing with this behavior, and that has historically ended poorly.