Trusting others in bad times.

Back in the late '90s, when those of us who fell into the category of "survivalist" were discussing preparations for Y2K and the potential collapse that may have happened (remember, hindsight is always 20-20. If you didn't live through it, don't judge it), we got into the topic of "trade goods".
It started when someone declared that gold was the only thing of real value (sound familiar?) and should be the top priority in preparing for trade if the economy fell apart. My standard answer to that is, "You can't eat gold." As I see it, most transaction between people on a daily basis are going to fall in the "less than $100" range. We'll ignore the fact that I'm using fiat currency as a reference, because dollars are easier to understand. Gold is not a practical form of exchange at that level, simply because it has very high value for its size. An ounce of gold has about the same value as a good rifle ($600-$1000), or a tailor-made suit. Since most people aren't going to be making such purchases on a regular basis, you need some way to break down that ounce of gold, which isn't much bigger than a book of matches. Then you need some way to verify that it is actually gold and not some alloy or painted lead. This is where the issue of trust entered the discussion.
Since gold is impractical, silver was brought up as a daily-use currency. Less value for its size, but you still have the issue of purity and trust. Other metals were brought up and the two that really put trust to the test were lead and brass. As in ammunition. Should you use ammunition as a barter item, knowing there is a chance that it could be used against you? Would you trade a stranger anything for a spare pistol and ammo for it, knowing that he could come back and use it against you or yours? Food was a good option, base the "new economy" on the calorie content of what you had to trade. We never did come to a consensus on the issue, Y2K came and went while we were still arguing about it, but the question of trust still lingers.
How do you decide who to trust? In small towns, it's easier to get information about someone and their reputation. Once you get a bad reputation, the only people who will deal with you are others with a bad reputation. Trust is a bitch to earn, but almost impossible to regain once lost. I've seen people move from the city into small towns, set up businesses and try to run them like they did in the city. They generally last about three years before they're bankrupt. All it takes is a handful of pissed off customers and word-of-mouth will kill a business in a small town. I've also seen folks set up shop, run an honest business, treat their customers well, and thrive. For some odd reason, the ones that thrive all have firm religious roots.
"Trust your neighbor, but brand your cattle" is a phrase you'll see on posters in ranch country. "Trust but verify" was the phrase used in the nuclear disarmament talks. When the SHTF, trust and honor will become valuable once again. I advise everyone to start working on both as preparation.

ranamacar