Welcome To The Circus: Bread, Circuses, And Debt Traps (Part 4)

Broken Social Contract And Loss Of Trust In Institutions

Has the social contract been broken? Have people lost faith in society’s institutions?

Broken Social Contract

It is no surprise that people are losing trust in institutions. Indeed, the social contract has been broken. The institutions have broken the trust. Trust, once it is lost, is tough to get back.

What Is The Social Contract?

The social contract is an idea in political philosophy. It argues that a social contract exists between the government or state and individuals. However, the concept of the social contract can be extended into other areas, such as the workplace. The real question is, do you remember signing the social contract? If so, where and when did you sign it?

Loss Of Trust In Institutions

Following a broken social contract, people are losing trust in the institutions. People were raised to believe that society and its institutions were there to help them succeed. On the contrary, the institutions are there to maintain the status quo and to keep the people at the top in power in both the private and public sectors. Here are five key institutions people have lost trust in.

Real Estate

Socar Chatmon-Thomas, who is a realtor in Austin, Texas, told The Guardian, “It’s pissing me off because somebody who went to school, got a degree, or otherwise did everything right and now has a job making $60,000 can’t buy a home” and is a “breach of the social contract.” The Motley Fool found that “home prices in the U.S. increased by 30% from 2020 to 2022,” while the “median home price increased by 416% from 1980 to 2020.” The Zillow Housing Value Index puts that typical home price in the United States at $355,852 (up 18.2% over the last year). Since real estate is a crucial way to build wealth and security, People have lost trust in realtors.

Since younger people can no longer afford a house, they must find other solutions. One solution is leaving expensive countries like the United States to live in less expensive countries.

Higher Education

According to a 2018 Gallup poll, only 48% of Americans expressed “a great deal” or “quite a lot” of confidence in higher education, “down from 57% in 2015.” There has been a loss of trust in the higher education system for several reasons. First, many people must go into debt to receive a college degree. Second, higher education does not prepare students for life. It teaches people to regurgitate information, be good students, pass a test, and become good employees. Third, the higher education system no longer teaches critical thinking and how students can learn to think for themselves. Fourth, people realize that the most successful people don’t have degrees. They learned by educating themselves through self-education. Finally, the higher education system is going the way of the dinosaur as the university system will be replaced by digital alternatives: online education and digital courses. The last person you want to learn from is a professor.

Banks

Banks have also seen a decline and loss in trust. According to The Financial Brand, “Half of US adults say their trust in banks has declined over the past few years, although only 18% of Americans say the same about credit unions.” Reasons for loss of trust range from poor customer service to offering a low-interest rate for savings accounts. The Federal Reserve, and central banks, are cartels that do not serve the interests of the people but their self-interest. The centralized banking system is dated in the technology age.

There are now decentralized options to the centralized banking system with cryptocurrencies. More people are learning how the financial system, specifically the banking system, works through YouTube Channels such as George Gammon. The more people know about how the modern monetary system functions. If you can, consider keeping as little money in the banks as possible.

Government

According to Pew Research, the public trust in government is near historic lows, with only 20% “who say they trust the government to do what is right just about always/most of the time.” Pew Research has also found that 65% of people polled say “most political candidates run for office to ‘serve their own personal interests.’” Investment Watch proves that 65% of people surveyed made correct observations, with Republicans and Democrats beating the S & P 500. According to a report by Unusual Whales in 2021, “Congress bought and sold nearly $290 million in stocks (corresponding to 3,500+ transactions by 105 members of Congress).” If you or I did that, it would be considered insider trading.

Medical System

There has been a loss of trust in the healthcare system. According to Deloitte Insights, “After an experience where they lost trust [with a healthcare provider], four out of five participants say there was nothing the provider/health system could do to make them return to the same provider or health system.” A Gallup Poll found that Americans' trust in the medical system declined from 44% in 2020 to 38% in 2022. The pandemic exposed the healthcare industrial complex for what it was and how it operates. People rightly became cynical and lost trust in doctors, hospitals, vaccine manufacturers, and government agencies such as the CDC and FDA. To make matters worse, Millennials experienced a ‘Vietnam War event’ in 2021 that went unnoticed by the medical system.

This is the fourth post in a five-part series. Subscribe to get the final article sent directly to your email!

Do you remember signing a social contract? Have you lost faith in the institutions you were told to trust? Let us know in the comments below!

Views expressed in this article are the author's opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment, financial, or legal advice. Consult with a financial or legal professional before making an investment or legal decision. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). It is now available in paperback and for the Kindle on Amazon.