Ep 1. This episode explores the core idea of social capital – that relationships matter. We delve into why the concept of social capital is needed and how we first came to use the concept.
Lindon Robison recounts his initial interest in social capital during a sabbatical in the mid-1980s when he sought to reconcile concepts of service, faith, and emotional connections with neoclassical economic theories that emphasized self-interest and utility maximization. This led to the realization that relationships significantly influence economic transactions, as evidenced by his research on farmland sales, which showed that the selling price varied greatly depending on the relationship between the buyer and seller.
Tristan and Lindon discuss the interdisciplinary nature of social capital, highlighting how economists, sociologists, anthropologists, and political scientists all contribute to understanding human behavior through the lens of relationships. They emphasize that social capital is a relatively recent term, gaining traction in the 1980s and 1990s as a response to the limitations of neoclassical economic models that often ignored the importance of relationships in human exchanges.
The episode also explores the historical context, noting that even Adam Smith, often considered the father of modern economics, recognized the role of empathy and relationships in economic behavior in his earlier work on moral sentiments. This historical perspective reinforces the idea that while the term social capital may be new, the underlying concept is not.
The conversation underscores the practical implications of social capital, particularly in enhancing productivity. Tristan and Lindon argue that fostering social capital within organizations can lead to improved outcomes, as strong relationships among workers can reduce turnover and increase productivity.
In conclusion, Tristan and Lindon stress the importance of continuing to explore and understand social capital from multiple disciplinary perspectives to better grasp how relationships shape human behavior and societal outcomes.
