Economic Multipliers (96)

Do you know what these are?

They help CREATE wealth in systems.

Trust is an economic multiplier.


The February 2, 2013 issue of The Economist magazine had a nice summary of some of the initiatives the Nordic countries (mainly Sweden, Denmark, Norway and Finland) are implementing to address some of the economic challenges their countries face.

In an age when many countries are struggling economically, on the whole, they are not. They have problems. They also expect more to crop up in the future. They are dealing with them.

In these ‘socialized’ systems, you can find easy to access daycare, public schools and public hospitals run by private businesses and easy paths for employers to let go of workers they do not need (with support systems for workers to transition to other jobs).

What’s most interesting is that on the whole, they willingly pay taxes.

A quote: ‘A Swede pays tax more willingly than a Californian because he gets decent schools and free health care.’


When you can ‘trust’ …

… that the people around you are doing the right things (because, on the whole, they are),

when you can ‘trust’ …

…that the government is spending money in ways which will benefit society and you (because, on the whole, it is) and

when that ‘trust’ …

… translates into less problems societally (less negative economic multipliers),

you might expect that things would go a lot better economically in the long-term.


Today, the Nordic countries have proven that the ability to ‘trust’ your fellow citizens and the people who you elect into office might be the greatest economic multiplier any society can ever have.

Look around you in the community and the nation that you live in: Who do you ‘trust?’

In the United States today, many ‘groups’ act as the center for people’s individual trust but it is the ‘collective faith’ that all people have in all their fellow citizens and their nation which ultimately governs its future prosperity.


P.S. The quote is from: The Nordic Countries: The Next Supermodel.

You don’t specifically have to be interested in economics to enjoy the February 2, 2013 issue of The Economist magazine. You may just be interested in some of the things that are possible when the people who make up governments create ‘trust’ by making it their business to support their citizens in positive ways.