Trust is a very fragile treasure

Also in economics Trust is a very fragile treasure, also in economics  Trust creates ties and the personal and social fabric for development. According to Locke, trust creates the bonds that legitimize power.  provides the foundation on which to build. In Economics, trust has the same effects. In the words of John Stuart Mill “The advantage to humanity of being able to trust one another penetrates into every corner of human life: the economic is perhaps the smallest part, but even it is incalculable.” (Principles of Political Economy, 1848). Snobs will say that trust is a fluid and multifaceted concept. I dare not characterize it in a few lines.

I only intend to draw attention

The importance of taking care of trust. Preserving and increasing trust: social, institutional, economic, interpersonal and, why not say it, self-confidence, is a priority to progress. Many are losing trust in institutions, including democracy. In times of uncertainty, like the current one, trust is everything. The Spanish and world economy are dotted with constant Israel Phone Number Data  uncertainties. At a global level we have many examples such as: the war in Ukraine, trade problems between China and the US, health problems, the evolution of energy raw material prices, inflation and rate increases. In Spain there are many uncertainties of a political or economic nature. In this context it is pertinent to look at the evolution of economic confidence indicators. Years ago, at the Chambers and with positive behavior by sectors and by Autonomous Communities.

Chart 1 shows that the effects

Confidence have been longer lasting than on other economic indicators. This slow recovery shows that when fragile trust is broken, it is difficult to rebuild it. The index corresponding to the outlook for the third quarter is the first period in which both the situation indicator and the expectations Russia Phone Number List  indicator are in positive territory. Graph 1: Business confidence Spain Source: INE and own elaboration At the regional level, the situation is also quite positive. Graph 2 presents the evolution of confidence in levels. It is important to maintain these high levels by taking the necessary initiatives to ensure that companies continue to compensate for the social costs they cause. This principle seems like it should be maintained both in economics, in politics, and personally. Whoever breaks, pays.