Trust shapes all of our relationships, whether personal or corporate. In the second installment of this series on trust by Creating Communities Australia, we consider how economic anxiety is shaping our trust relationship with institutions, government, and business.
It comes as no surprise that economic anxiety shapes trust. When interest rates rise for the tenth consecutive time, and mortgage stress affects increasing pockets of society, it is reasonable to question the wisdom of monetary policy. To wonder whether the institutions announcing these fiscal changes can be trusted.
Anxiety does not always follow rational paths and economic anxiety is no different. While we may accept that certain policies are ‘necessary for the nation’, the notion doesn’t make it more palatable for the individual.
In a study across 28 countries (including Australia) with 32,000 respondent, Edelman Research examined the fluctuating levels of trust in political, business and institutional spaces. These findings have contributed to an annual Trust Barometer now in its twenty-third year.
The 2022 barometer highlighted that economic optimism is collapsing all around the world with 24 of 28 responding countries seeing all time lows, in the number of people who think their families will be better off in five years.
What substantially shapes this anxiety is facing these economic fears without a safety net.
In our local context, the data is stark. 70% of Australian respondents believe their families will be worse off in five years—a dramatic 11% increase on the 2022 findings.
The personal anxiety that respondents have for losing their job (89%) and inflation (74%) is on a par with climate change (70%) and nuclear war (72%) as chief causes of worry. Sobering data.
What about you and me?
How do these findings shape community? In many cases, they send us inward. They can incite retreat as we become more concerned about economic security than we about our relationships with others. Practically, the impacts of economic pessimism, job insecurity, inflation and mortgage stress may be the impetus for finding second jobs, working longer hours, and instigating severe personal budget cuts. An unintended consequence of all of this is often less connection, less engagement in social spaces, being less available to into the communities around us. In short, we can become more insular and less connected.
While trust doesn’t necessarily inform those decisions — economic realities are the greatest informant — the affect on relationships and subsequent mental health impacts are ultimately informed by our expectations that ‘things are getting worse not better’.
So, what now…
The encapsulation of the 2023 survey comes to us as no surprise: we are navigating a polarised world. It is a trust environment where collaboration and invitation is more difficult than ever. If all these findings seem depressing or difficult to respond to positively, take heart! Despite the increased and real economic pressures, each of has a level of agency.
We can engage with others, we can talk, we can share our burdens within the communities of which we’re a part, and we can intentionally step into new, safe spaces of connection and trust.
Despite the overwhelming inclination to retreat and the polarisation that we see all around us, we can be part of writing a different story by the way we respond, engage, and project our voice into communities.
What next?
Creating Communities has always been a catalyst to build the skills, attributes and attitudes of people to live rich and full lives connected together in community.
Our challenge is to create and share knowledge about actions that build healthy, just, and sustainable communities and societies in which all citizens can flourish, thrive, and fulfill their full human potential*.
Across business, government and institutions, Creating Communities is a stimulant for positive change and greater collaboration, connectedness, and community.