Ep 3. Capital is primarily an economic concept that refers to something capable of producing a good or service or transforming other goods without losing its identity. For capital to maintain its identity in the production and transformation of other goods requires that it has a potential supply of services from which it can provide without being exhausted. Without this potential, something that is capital of supplying goods and services and losing its potential is a single use or consumable good. Finally, another capital characteristic is that its potential to supply goods and services has value that can be shared or exchanged. It should also be noted that goods and services provided by capital may come at a cost of other supporting goods or produce externalities for some without their permission. Several forms of capital include man-made, financial, political, and human. If social capital is capital, then it should satisfy the requirements of capital including the potential to produce goods and services that satisfy social needs. Needs associated with people include socio-emotional and physical needs.
Tristan and Lindon start by defining capital in general terms. Lindon explains that, from an economic perspective, capital is a potential that supplies resources and services, enabling the production of goods and construction of other forms of capital. He emphasizes that capital is typically a stock that exists at a point in time and produces future benefits or returns.
Tristan agrees, adding that social capital can be seen as a stock capable of producing future benefits, such as trust, goodwill, and solidarity, which can be invested in and maintained over time. Both agree that social capital fits the characteristics of capital, as it represents a potential residing in people and their relationships.
However, they acknowledge that not all definitions of social capital align with this view. Some authors consider social capital a metaphor, suggesting it has capital-like characteristics but isn’t capital in the traditional sense. Lindon clarifies that capital, in his view, must represent a potential, and social capital fits this definition as it resides in human relationships and networks.
The conversation shifts to how social capital is maintained, invested in, and used. Lindon emphasizes that social acts, such as giving a gift or helping a friend, invest in social capital by satisfying needs and increasing the sense of connection between people. This investment can vary in intensity and longevity, with some relationships, like those formed through significant life experiences, having a more enduring impact.
Tristan and Lindon also discuss the dynamic nature of social capital, noting that it can appreciate or depreciate over time depending on how relationships are nurtured or neglected. They explore how symbols, shared experiences, and commonalities maintain social capital even when physical proximity is not possible.
