The quote essentially means that the economy needs credit adn trust to function smoothly, much like a machine needs lubrication to work without friction. Credit is the financial oil that keeps businesses running. It allows companies to invest in new projects, hire employees, and expand their operations even when they don’t have immediate funds on hand. Without credit, economic growth would be significantly slower and more challenging.Trust is equally crucial. In an economic context, trust refers to the confidence that participants have in each other – consumers trusting companies, investors trusting corporations with their money, banks trusting borrowers with loans etc. When trust exists in an economy,transactions occur more smoothly because there’s less need for extensive checks or guarantees.
The absence of either credit or trust can lead to an economic slowdown or crisis. For instance, during a recession or financial crisis like the one seen in 2008-09 global downturn where banks were hesitant to lend (credit crunch) and people lost faith in financial institutions (lack of trust), it resulted in a severe economic contraction.in today’s world where digital transactions are increasingly common and economies are becoming more interconnected than ever before; credit has evolved beyond customary banking systems into fintech solutions like peer-to-peer lending platforms while blockchain technology is being hailed as a tool for enhancing transparency and thereby building trust.
Personal growth parallels this concept too: self-trust could be compared with ‘credit’ – you need belief in your abilities (self-trust) to invest time/effort into personal growth initiatives even if immediate results aren’t visible; while ‘trust’ from others can act as external validation that reinforces your self-belief making you more likely persevere through challenges on your personal growth journey.
