Ep. 4. One requirement for something to be capital is that it enables the production of goods – something that satisfies socio-emotional and physical needs. In social capital, relationships are the factory that produces the flows of goods and services that satisfy human needs. In other studies of capital, we distinguish between kinds of capital by the nature of the flows of goods they produce alone or in combination with other things. Similarly, we can distinguish between different kinds of social capital by their flows. There are social capital flows between persons with weak ties that facilitate the production and exchange of commodities. There are social capital flows that provide relational goods that validate, comfort, express inclusion, and transcendence that recognizes the needs of persons outside of oneself. Of course, when we refer to capital, we compare the plant and its capacities. Similarly, in the study of social capital and relationships, we recognize that persons have different capacities and resources to produce social capital flows, which causes us to examine differences in social capital and the role these differences have on the flows of relational goods, commodities, and attachment value goods. Finally, we need to account for the difference in goods being produced. Using one’s social capital to win an election is a different application than using one’s social capital to preserve a natural resource or raise funds for a public good. Another aspect of capital is its capacity to transform the meaning and value of things. This requirement must be imposed on social capital – to transform the meaning and value of things.
The episode begins with Lindon emphasizing that people rarely achieve anything alone and that productivity significantly increases when people work together. He references Adam Smith’s 1776 work “The Wealth of Nations” to illustrate how specialization and collaboration enhance productivity. Lindon asserts that social capital facilitates exchange and specialization, essential for productive interactions.
Tristan and Lindon then explore the concept of “arms length” exchanges, common in economic theory, and question whether such exchanges exist in reality. Lindon argues that once people interact face-to-face, the nature of their exchanges changes, moving beyond mere commodity transactions to include relational goods, such as frequent flyer miles or favors within personal relationships.
The discussion shifts to the broader outcomes of social capital. Tristan suggests examining other forms of capital to understand social capital better. Lindon explains that capital typically enables the production of goods that satisfy needs, whether physical or relational. He highlights that social capital produces relational goods, which satisfy social and emotional needs, such as internal and external validation and belonging.
Tristan agrees and expands on the idea, emphasizing that social capital facilitates cooperation, collective action, and the exchange of relational goods. They discuss how social capital interacts with other forms of capital, such as human capital, to enhance productivity. Lindon illustrates this with the example of a teacher whose human capital (skills and knowledge) is more effective when combined with social capital (caring relationships with students).
They also discuss the diverse outcomes attributed to social capital in the literature, such as recycling behaviors and personal health-related actions. Lindon emphasizes the importance of understanding the needs that social capital satisfies, suggesting that needs drive the production and exchange of goods, including relational goods.
Tristan concludes that simply stating that social capital facilitates cooperation and collective action is incomplete. Social capital also responds to individual social and emotional needs, providing a broader understanding of the concept. They agree that identifying the needs satisfied by social capital can improve our understanding of the processes that produce it and its various outcomes.
Overall, the episode highlights the complexity of social capital and its multifaceted role in facilitating cooperation, collective action, and the satisfaction of social and emotional needs. The conversation sets the stage for further exploration of social capital in future episodes.
