“The Wealth of Nations,” Updated —
Repairing and Renewing America’s “Social Capital”
“Our problems are man-made, therefore they may be solved by man.”
–President John Kennedy
* * * * *
“Tens of millions of ordinary Americans will never recover from the financial collapse of 2007-09, a tragedy that spread misery around the world and cost U.S. households at least $19.2 trillion, according to Treasury estimates. So there was barely a whiff of satisfaction in last week’s $13 billion settlement with JPMorgan Chase.
While the $13 billion payout is the largest ever by a single company engaged in government litigation, it represents only about half of the bank’s profits last year.”
–“Was Justice Served to JP Morgan?”; The Star Tribune (Nov. 27, 2013)
What makes America wealthy?
Some would argue that America is rich — and it is the richest country in history, by far — because of its people.
Specifically, their ingenuity, drive, skills, diversity, etc.
Call that the nation’s “human capital.”
Some would say America’s wealth lies in its bountiful natural gifts: its harbors, topsoil, fresh water, and abundant energy reserves (coal, oil and natural gas) — not to mention aesthetic treasures like Yosemite and Yellowstone.
Such blessings constitute the nation’s “natural capital.”
Still others would point to America’s infrastructure — its grid of roads, tunnels, bridges, factories, and communication networks (frayed or aging as some of those things may now be).
Economists refer to those things collectively as a nation’s physical plant or capital.
America’s True Crown Jewel
As prodigious as all those things are, though, even combined, I’d argue that they still pale in comparison to the United States’ true crown jewel: its now-centuries old legal, social, and — yes, even political institutions.
I’m referring to such things as its democratic form of government; a deeply established rule of law; the country’s tradition of 
public education and world-class universities; and its market-based, capitalistic economy.
And just as importantly, the mindset of trust, cooperation, and spirited competition that undergirds such institutions.
Call all those things a country’s social capital — its “national DNA.”
Types of “Capital”
Exactly how much are those institutions cumulatively worth?
The question is absurd; the answer is, “priceless,” of course.
But, if you were forced to place a value such things, surely you would conservatively guess hundreds or even thousands of trillions of dollars (by way of comparison, the U.S. economy produces about $17 trillion of goods and services annually).
All of which suggests a corollary: how much damage is caused by weakening or undermining one (or more) of those institutions?
Belatedly Assessing Costs
More than five years after The Crash of 2008, society is only now debating the cost inflicted on the U.S. and global economy by 
Wall Street misconduct during that period.
Monthly if not weekly, headlines blare that this or that “Too Big to Fail” bank just settled the latest lawsuit for billions.
Or tens of billions.
Is that the right amount?
How much is enough?
As enormous as The Crash’s financial and human cost, I’d argue that our calculus is omitting a vastly bigger cost: the damage done to the country’s “social capital.”
As 21-century scientists unravel the mysteries of the human genome — one hopes responsibly — the nation’s social scientists, leaders, and citizens face a parallel and equivalent challenge: addressing and repairing the nation’s damaged social DNA.
