Trust and the Economy – an Onsite Computer Services Opinion

October 17, 2008

Every small business owner with a Microsoft based system serviced by Onsite Computer Services in New Orleans knows the ease of conducting business when the customers trust the business, and the business trusts the customer – everything is simple and free capitalism prevails.  Lately, however, big business seems to have lost all concept of trust as the financial system and the world economy grind to a halt.  It appears large banks around the world do not trust other large banks to repay loans and liquidity between banks has disappeared.  No one is lending capital.  The problem is this liquidity crisis is not confined to large banks.  The liquidity crisis affects EVERYONE as access to capital diminishes the economy grinds to a halt.

As staunch devotees of the Austrian school of economic thought, Onsite Computer Services in New Orleans observes the capitalistic process every day while performing computer services for our Microsoft clients.   One of the cornerstones of the capitalistic process which promotes the cyclotron of world commerce is the concept of trust.

A Microsoft client in need of reliable service trusts Onsite Computer Services in New Orleans with his data and calls for service.  Trusting the client will pay, Onsite Computer Services satisfactorily completes services that conform to industry principles.  The client pays Onsite Computer Services.  The process is very simple as long as each side of the capitalistic equation trusts the other to perform their part.  As any small business owner knows, when one party does not trust the other party, either there is no capitalistic intercourse or an attorney is utilized to enforce agreements.

Attorney services add transaction expenses to the cost of doing business.  All expenses can be considered friction in the capitalistic machine – the larger the amount of friction, the harder it is for the economic engine to operate.  In a capitalistic system without trust, transactions costs add so much friction (i.e. expenses) to the capitalistic mechanism, the engine cannot function.

The present liquidity situation faced by the economies of the world is an extreme example of a lack of trust where the capitalistic machine cannot function – even attorneys cannot enforce agreements to repay loans between large, established firms.  Attempts to mitigate the situation with government involvement by the Federal Reserve and Treasury have produced marginal outcomes thus far; however many contend government intervention will require time to produce significant results.

Trust is a remarkable concept.  With trust between parties in capitalistic intercourse, the cyclotron of commerce is an miraculous machine to behold.  Albeit without trust, capitalism at every level ceases to function in an efficient manner and life is harder for everyone.  What do you think?

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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