Global Survey Reveals Crisis of Trust: Inequality Erodes Faith in Capitalism and Hard Work
The 2020 Edelman Trust Barometer, marking its 20th year, paints a stark picture of declining public faith in societal institutions and capitalism itself. The key finding? A majority of people in developed nations no longer believe hard work guarantees a better life—a fundamental shift in the social contract.
The Breakdown of Trust
- Economic Growth ≠ Prosperity: Despite strong macroeconomic indicators, most respondents in developed markets (U.S., Europe, Australia) doubt they’ll be better off in five years.
- Capitalism Under Fire: 56% globally say capitalism in its current form does “more harm than good.”
- Job Security Fears: 83% of workers worry about losing their jobs to automation, recession, or gig economy disruption.
- Dignity in Decline: 57% fear losing the respect and stability once tied to their professions.
The Great Divide: “Elite Buoyancy vs. Mass Despair”
The report reveals a staggering “trust chasm” between the wealthy, educated elite and the general public:
- 65% of the “informed public” (top 25% income, university-educated) trust institutions.
- Only 51% of the mass population (83% of the global sample) share that trust.
- In Australia, the gap is even wider: 68% of elites trust institutions vs. 45% of the general public.
“We’re in an Alice in Wonderland moment,” said Edelman CEO Richard Edelman. “The elites are thriving; the masses are losing hope.”
Why the Cynicism?
- Inequality Overrides Growth: In developed nations, income disparity now matters more than GDP gains.
- Technology Anxiety: Nearly two-thirds fear tech is advancing too fast—Australians are among the most skeptical.
- Erosion of Meritocracy: Traditional promises of upward mobility through hard work ring hollow amid gig economy precarity and wage stagnation.
A World of Two Realities
The report warns of “a record eight markets” with historic trust gaps between elites and the public, fueling polarization. Without systemic reforms—fair wages, job protections, and equitable growth—this divide threatens social stability.
The Bottom Line: Capitalism’s legitimacy is now in question. For millions, hard work no longer pays off—and unless institutions address inequality, distrust will keep growing.
