Lack of Politicial Trust Is the Reason for Market Crisis
Benjamin Barber, University of Maryland | October 20, 2008
The financial crisis is the consequence of a democratic deficit. ++ “Market capitalism only works when it can feed off democratic social capital” and the lack of political trust, which is a form of social capital, hinders people from participating in the market ++ The “secret of the invisible hand” is not economic but social capital. ++ There is a need for not only “de-leveraging” but also for “re-democratizing” to counteract the financial crisis. ++ This way political trust can be regained and social capital can be recreated.
