An Analysis Of The Reasons For Trust Crisis In Modern China In Perspective Of Public Economics

During the history of the global economic development,the lack of trust is a big challenge that can not be bypassed in the process of modern economic development of each country.In recent years,there are also a lot of trust problems in China,which has seriously affected the economic development and social stability.This paper will analyze this phenomenon from the perspective of public economics,and take some suggestions to solve this problem.Trust is one of the most popular topics in the field of social science,psychology,sociology and economics.Overall,many scholars have realized the importance of trust in the social stability and economic development.But the interpretation of lack of trust so far was focus on the construction of the cultural tradition and the system of property rights,which cannot get rid of the problem of endogeneity.Therefore these discussions do not touch the nature of trust problems.The lack of trust lead to a huge cost for the operation of social and economy,which has a great negative externality.But few scholars regard it as a problem of public economics.This paper will analyze the basic attributes of trust from the perspective of public economics,and put forward the causes of the lack of trust from the perspective of supply and demand of public goods.Then we assume that the modern economy of trust demand increased dramatically while the supply of trust doesn't.So the trust defects caused by the imbalance between supply and demand.To make matters worse,the development of the Internet virtual community has also brought new problems of supply and demand of trust.All these factors led to the trust crisis to be worse.In order to verify the assumption,we choose three different forms of society and economy to study the evolution trend of trust supply and demand along the time,which is the Spring and Autumn Period,the Song Dynasty and Modern China.We conclude that: with the development of economic and deepening of labor division,the trust demand has been increasing quickly;At the same time,the supply mechanism of trust will change with the develop of traffic,communication technology and society morphological.But there is a lag between them.Therefore,when the economic and social change fast,the problem of the lack of trust often appears.Through the analysis,the author believes that the lack of trust in modern China is caused by the gap of demand and supply of trust in economy and society.Specifically,since the Reform and Opening-up,the social division of labor is increasingly developed,the long distance movement of population become more and more frequently and the Internet develops quickly.All these phenomena broke the closed form of traditional society,which rapidly increases the demand of trust.On the opposite,during the Cultural Revolution the traditional cultural has been destroyed which used to be contribute to the trust among people.What's more,social organizations and social credit system grow slowly,which supply little trust that couldn't meet the demand.At last the Internet virtual economy develops fast in nowadays China,which causes new trust problems on internet.All these make the trust supply not enough,so the problem of the lack of trust frequently appears in modern China.Finally,we put forward some suggestions according to the causes of the problem of the lack of trust.Such as seriously enforcing the law to improve the credibility of the public organization;encouraging the development of associations to promote the diversification of trust supply;establishing and perfect the social credit files,building the reward and punishment system for trust;building the supply mechanism of trust on internet to make network environment friendly.If we do these seriously,the problem of lack of trust will be solved.